More than three-quarters of billionaires did not inherit their wealth. Rather, according to Ramsey Solutions' National Billionaire Survey, 79% of America's billionaires today identify themselves as self-made. According to the study, five professions created the most millionaires: engineers, accountants, managers, lawyers, and teachers.
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Although people in some of these positions earn high wages, “only 31% earned an average annual salary of $100,000 over the course of their careers, and one-third earned six figures in any year of their career.” The investigation found that he had never earned an income of
What tips do self-made millionaires give to others looking to build wealth? GoBankingRates has 8 tips from self-made millionaires. We've scoured our archives to find the best tips.
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Don't try to time the stock market
“[S]Develop a long-term investment plan that aligns with your risk tolerance, goals, and schedule, and always remember to explore your options,” says self-made millionaire and founder of University Grade Trading Education Thomas Clarow said.
Dollar-cost averaging allows you to invest in proven investments, such as consumables or health care, rather than selling stocks as many do during a recession.
Avoid risky investments during economic downturns
Brian David Crane, founder of digital marketing fund Spread Great Ideas, said he avoids certain market sectors during times of economic uncertainty, such as real estate, cryptocurrencies, luxury consumer goods and hospitality.
A more conservative approach can help protect your portfolio.
Hold the best stocks forever
Billionaire Warren Buffett famously said in his 1998 letter to shareholders that “our favorite holding period for stocks is forever.”
The swatting billionaire agrees. CJ&CO founder and treasurer Casey Jones previously told GOBankingRates that the company is looking to invest in companies like Amazon with a proven track record and a clear vision for the future.
“Although the company's stock price has experienced significant declines in the past, it has managed to recover and continue to grow. This resiliency is a testament to Amazon's strong business model and ability to adapt to changing market conditions. ” he said.
Find dividend stocks
Once you find a stock that performs well, reinvest the dividends. Joe Camberato, CEO of National Business Capital, pointed to Apple as an example. “In my opinion, the best is yet to come for Apple. Also, the fact that they pay dividends allows them to reinvest the dividends and buy more stock, and that's my position. will be strengthened.”
Invest in companies you know and love
Anna Koval, a self-made millionaire and co-founder of online tarot reading platform Tarotoo, follows another of Warren Buffett's philosophies: investing in companies she understands and respects.
“For me, that means investing in companies that align with my values, passions and vision for the future,” Koval previously told GOBankingRates, naming EV maker Tesla as one of his favorites.
Research before investment
YouTube personality and financial expert Jaspreet Singh agrees to invest in companies you understand. However, you don't have to be an expert to begin with. He recommended using ChatGPT to research companies investing in cutting-edge areas such as AI. “Don't just blindly throw money into companies. Do your research,” Singh said.
Surround yourself with wealthy people and learn from them.
Steve Adcock, a self-made millionaire who retired in his 30s, recently shared his wisdom in a CNBC article reported by GOBankingRates. “Throughout his career, I have worked with many wealthy people,” Adcock wrote. “Instead of being jealous of them, I took notes.”
read a lot)
If you can't find someone wealthy to mentor you, look no further than the public library. Steve Davis, CEO of Total Wealth Academy, said a quote that stuck with him was, “Learners are breadwinners, and leaders are readers.”
“If you're not getting the results you want in life, you have to read a book. Read, read, read, and when you're done, read some more. That you don't know what you're doing. “Study until you get what you want,'' he previously told GOBankingRates.
Of course, advice from millionaires can (and does) span thousands of books. Whatever that means to you, taking action on their tips is the next step to financial freedom.
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This article originally appeared on GOBankingRates.com: How to get rich: Everything you need to know from 8 self-made millionaires