How Do Millionaires Make Their Money
Only 3% of people in the United States are millionaires. This makes up 11.8 million households. If your goal is to become a millionaire, you need to understand how they act, what they do, and how they do it. In this guide, we’ll reveal what some of the most famous million and billionaires do to earn their income in live lavishly.
Who Are the Richest People in the US?
Forbes is well known for its list of the richest people in the world in The Forbes 400. According to their publication (last updated October 2, 2019), Jeff Bezos is the richest person in the United States. His net worth topples $110 billion. He is most known as the founder of Amazon, you know, the company that lets you order almost any item in your pajamas at night and get it delivered to your doorstep the next morning. We’ve condensed the list down to the top 10 richest people in the US. You can read the full list here.
- Jeff Bezos
- Bill Gates
- Warren Buffett
- Mark Zuckerburg
- Larry Ellison
- Larry Page
- Sergei Brin
- Michael Bloomberg
- Steve Ballmer
- Alice Walton
What do these people have in common?
One thing that stays consistent between all of the super-wealthy is that their primary source of income is NOT labor. They do not make their money from a salary or hourly wage. Instead, they build their wealth from ownership and investments. You’ll find that many of them started their own business which have grown significantly over time. That’s not to say that they never used labor as a primary source of income. In fact, many millionaires use their labor income as a way to start their business.
Another common situation for these people? They have all been doubted. Doubted that their idea would even work. Doubted that they could ever become profitable. Doubted that they would be able to lead their company. This is true for most entrepreneurs. You will be doubted by someone at some point during your career. The difference between these people is that they ignored the doubts and believed in themselves and their capabilities to build and grow their businesses.
What advice do these people give?
We’ve compiled some of the best advice from some of the richest people in the United States so you can learn from their success.
“The biggest risk is not taking any risk… In a world that is changing really quickly, the only strategy that is guaranteed to fail is not taking risks.” – Mark Zuckerberg
Mark has a very good point here. Without taking a risk, he wouldn’t be where he is today. All of the time he spent developing Facebook in the beginning, was certainly a risk. The lesson, take calculated risks and know yourself. If you believe that you are capable of leading a successful company, the chances are in your favor.
“I always knew I was going to be rich. I don’t ever think I ever doubted it for a minute.” – Warren Buffett
In this quote, Buffett teaches the importance of confidence. When we truly believe in something, we are much more likely to get there. So stay confident and believe in yourself!
“Patience is a key element of success.” – Bill Gates
Most people want to get rich fast. Everyone does. The problem? It isn’t realistic. It takes time to grow a business or gain a significant amount of wealth. Setting realistic expectations and understanding that it will take time to build wealth is critical to your success.
“Frugality drives innovation, just like other constraints do. One of the only ways to get out of a tight box is to invent your way out.” – Jeff Bezos
Constraints will force your business to either grow or die. A lack of resources will cause stress on your business which will encourage you to innovate, making it beneficial in the long run. Just think, if your business is losing money, you’re more likely to innovate as opposed to a company that makes a consistent $60,000 per year.
What investments do millionaires make?
From small businesses to stocks, to real estate, millionaires invest in many different things. There is one thing we found in common though, they are diversified. It’s hard to find a millionaire that owns stock in one company or one real estate property. They keep there investment diverse to mitigate as much risk as possible.
Building wealth and making 7 figures can take time. Don’t rush the process or doubt yourself. With enough discipline and hard work, anyone can become a million or billionaire, no matter your age, sex, or income. Applying the principals above will help you to stay on track along the journey and motivate you when times get tough.
Be sure to check out our article on how to grow your small business if you need help boosting your bottom line and building your business!