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Five Habits of Millionaires

Guess what? Millionaires have to save, too!

According to a study of college students at the Ernst & Young International Intern Leadership Conference in Orlando, Florida, 59 percent of these young leaders expect to be millionaires within their lifetime. What’s more, 5 percent of them expect to hit the million-dollar mark while in their 20s.

And the super-rich are a growing group. The top 0.1 percent of the population’s average income was $3 million in 2002, up two and a half times the $1.2 million, adjusted for inflation, that group reported in 1980.

Earned Money vs. Easy Money

Easy money usually comes from inheritance or luck, such as winning the lottery. The track record of people who get their money through the lottery or other windfalls is usually very different from those who created their wealth themselves or who planned for an expected inheritance. Lottery winners are often a sorry lot; more than 90 percent use up their winnings within 10 years — some go through their money in weeks or months.

But there are some consistent patterns among those people who earn or plan to inherit their money, and these five strategies may be worth emulating.

1. Avoid the Earn-to-Spend Mentality

Michael LeBoeuf, author of The Millionaire in You, points out that to increase wealth, it’s essential to emulate millionaires who view money as something to save and invest, rather than income to spend. Many wealthy people live quite simply, he points out, choosing less pretentious homes than they could theoretically afford and opting for financial independence over material showmanship.

2. Focus

LeBoeuf also counsels resisting the impulse to be scattered in your efforts and interests: “Winners focus; losers spray.” And goals that are clearly written down are easier to keep in focus.