Here are the 4 types of rich people and their top habits...

[Anonymous]

Interesting article... especially in relation to DCUM standards.

The author spent 5 years interviewing 225 millionaires -- here are the 4 types of rich people and their top habits...

https://www.cnbc.com/2022/07/31/i-spent-5-years-interviewing-225-millionaires-3-money-habits-that-helped-them-get-rich.html?__source=sharebar|twitter&par=sharebar

[Anonymous]

Huh. The most accessible is the saver-investor. You don't even need to be rich. We'll be comfortable in retirement and our kid will be able to go to school wherever she wants. And we didn't have to climb the ladder in a corporate career or become the very best at what we do. We've lived very balanced lives with a lot of work-life balance, but we live under our means and are constantly tucking money away for later in various investment accounts. It pays off.

Though my "dream" is to be one of the dreamers. I own my own business and would love if one of my passion projects suddenly turned into a windfall for us. Then we really could be rich because our saving/investing prowess means we wouldn't blow it all on something frivolous and could probably turn it around to work for us pretty fast.

[Anonymous]

We are definitely in the safer-investor group but my husband also climbed the corporate ladder in an entrepreneurial way that really added to our wealth. But until he retired it was the saver-investor approach that really created a lot of wealth. We have preached this to our adult children and they seem to be following a similar path.

[Anonymous]

Anonymous wrote:Huh. The most accessible is the saver-investor. You don't even need to be rich. We'll be comfortable in retirement and our kid will be able to go to school wherever she wants. And we didn't have to climb the ladder in a corporate career or become the very best at what we do. We've lived very balanced lives with a lot of work-life balance, but we live under our means and are constantly tucking money away for later in various investment accounts. It pays off.

Though my "dream" is to be one of the dreamers. I own my own business and would love if one of my passion projects suddenly turned into a windfall for us. Then we really could be rich because our saving/investing prowess means we wouldn't blow it all on something frivolous and could probably turn it around to work for us pretty fast.[/quote]

I could have written this -- that IS the dream.
Good for you for getting out there and becoming a business owner!
I'm afraid I'd be too scared to leave my well paying job to open something of my own... even with DH's $250,000 salary. 🤷‍♀️

[Anonymous]

This is a great article with a lot of detailed information & suggestions.

Although, I realized while reading it, that I don't know too many virtuosos.
The rest of the group's, yes - lots of them.. but only a few virtuosos.

[Anonymous]

Anonymous wrote:We are definitely in the safer-investor group but my husband also climbed the corporate ladder in an entrepreneurial way that really added to our wealth. But until he retired it was the saver-investor approach that really created a lot of wealth. We have preached this to our adult children and they seem to be following a similar path.

Oxymoron.

[Anonymous]

I wish they allocated percentages to each category. Not sure I'd call all business owners dreamers (a guy with 3 dry cleaners is a dreamer??), but if you took savers/investors and regular business owners, that's probably 90% of all millionaires.

[Anonymous]

What about “Scions with inherited wealth”?

[Anonymous]

Anonymous wrote:

Anonymous wrote:We are definitely in the safer-investor group but my husband also climbed the corporate ladder in an entrepreneurial way that really added to our wealth. But until he retired it was the saver-investor approach that really created a lot of wealth. We have preached this to our adult children and they seem to be following a similar path.

Oxymoron.

No, he worked for 15 years in a big corporation and then he did a leveraged buy out of a money losing business and then he started his own business. So he climbed the ladder but in a different way.

[Anonymous]

Anonymous wrote:I wish they allocated percentages to each category. Not sure I'd call all business owners dreamers (a guy with 3 dry cleaners is a dreamer??), but if you took savers/investors and regular business owners, that's probably 90% of all millionaires.

I think the guy with three dry cleaners could absolutely be a dreamer, if he built those dry cleaners from scratch and figured out how to make them successful. Sure, that seems like a boring business but running any business requires moving parts -- business owners often have big schemes around boring things like POS efficiency. But that's how they make their businesses work. If the guy inherited his first business or his parents were doing this, not so much. But if he had a vision for creating wealth by offering a service a lot of people need, and figured out how to do it, he dreamed big and made it happen. That takes guts and perseverance.

Of course, the dreamer who built wealth as a musician or a best-selling author sounds cooler. But the nuts and bolts of making that happen aren't that different -- you have to have a vision and you have to work hard and you have to convince other people that your vision is worthwhile. The guy with the dry cleaning business has more in common with the successful musician than either of them have in common with a law firm partner or someone in the saver-investor category, even if they have the same net worth.

[Anonymous]

Anonymous wrote:What about “Scions with inherited wealth”?

They probably told the interviewer they were “saver-investors.”

[Anonymous]

It’s so boring to be a frugal rich person. So what if you have millions in the bank if you aren’t having fun? You can’t take it with you.

[Anonymous]

Anonymous wrote:It’s so boring to be a frugal rich person. So what if you have millions in the bank if you aren’t having fun? You can’t take it with you.

We’re the saver/investor type. One reason is because we have to be if we want to get rich, we don’t have the personalities for the other types.

But to address your criticism, we do get to have fun with it. Once the mortgage is eliminated early, that frees up a lot of cash flow. Some for more investing, but also a lot for additional vacations. Also, we have a system where we’ll still making steady contributions into investments, including tax-advantaged vehicles, but we’re also happy to draw dividends from a portion of the portfolio for fun money.

It’s also a lot less stressful when you know that your money is (generally) returning more than your combined income. It takes away a lot of the anxiety around work.

[Anonymous]

Anonymous wrote:It’s so boring to be a frugal rich person. So what if you have millions in the bank if you aren’t having fun? You can’t take it with you.

Because having no debt/paying for my kids college and giving them a leg up in life is more fun.

Honestly money is not the source of most of my fun nowadays. My relationships with friends and family are what give me joy and we have enough to have wonderful parties and go on (not super fancy) vacations with them. My hobbies- art and gardening and reading, also give me fun and joy and don’t cost a ton.. We would do this regardless of whether we were millionaires or not.

[Anonymous]

Anonymous wrote:

Anonymous wrote:It’s so boring to be a frugal rich person. So what if you have millions in the bank if you aren’t having fun? You can’t take it with you.

Because having no debt/paying for my kids college and giving them a leg up in life is more fun.

Honestly money is not the source of most of my fun nowadays. My relationships with friends and family are what give me joy and we have enough to have wonderful parties and go on (not super fancy) vacations with them. My hobbies- art and gardening and reading, also give me fun and joy and don’t cost a ton.. We would do this regardless of whether we were millionaires or not.

Different stokes for different folks, I guess. I am an introvert and do not get joy from friends, family, or other relationships. I get lots of joy from money, both from having it in the bank and from the things it can buy (home renos, etc.).