Have you heard about the billionaire who lives in a humble home?
Probably not, but we bet you recognize his name.
It’s Warren Buffett. Yes, we said Warren Buffett, the stock market tycoon estimated by Forbes to be worth $106 billion.1 His house? It is not a massive 30,000-square-foot oceanfront home. Not even close. He lives in a peaceful Omaha, Nebraska neighborhood in a $850,000 property he purchased for $31,500 in 1958.
Let’s be honest: living in a $850,000 home is a pipe dream for most of us. But when you consider that a property like that is home to the world’s fifth richest man, it’s pretty incredible, right?
Warren Buffett could purchase any property in the world (for cash!), yet he prefers to live in a humble, relatively tiny home in Omaha. Why is that?
What other surprising things can you learn from millionaires (and billionaires like Buffett) who do not live the typical millionaire lifestyle? Let’s look at 10 easy practices of billionaires. Some may surprise you, but what’s the best part about this list? It’s ten things you can start doing right now, regardless of where you are in your financial path.
And who knows. Introducing some of these behaviors into your daily routine may help you go on the path to being an everyday millionaire!
1. They are enthusiastic readers.
President Harry Truman reportedly stated, “Not all readers are leaders, but all leaders are readers.” One of the reasons billionaires become millionaires is their unwavering ambition to learn. To them, leadership books and biographies are far more essential than the most recent reality program or TikTok craze. When they have leisure time, they use it wisely—reading.
2. They comprehend the concept of delayed gratification.
Millionaires spend the majority of their life foregoing fleeting joys in favor of long-term achievement. They have no trouble purchasing an older used automobile, living in a humble area, and wearing cheap clothing. They do not care about keeping up with the Joneses.
Millionaires spend the majority of their life foregoing fleeting joys in favor of long-term achievement.
These selections enable them to save for retirement and college, as well as make a significant down payment on their dream house. They recognize that while rapid satisfaction is enjoyable, delayed gratification is far superior. Today’s sacrifices prepare them for tomorrow’s prosperity.
3. They select their partnerships carefully.
When they say you become who you associate with, they (whoever they are!) are not joking. Friends and family are some of our most powerful influencers, for better or bad.
If you hang out with a group of individuals who share your core personal, relational, and financial goals, you’ll be traveling in the same direction. You’re more likely to find encouragement, trust, and accountability among a group of friends who share your beliefs and ambitions.
Building a network of supportive friends and mentors may make all the difference when it comes to advance your profession or accumulate riches. No one walks the path of success alone, so surround yourself with people who will tell you the truth and encourage you as you try to become a billionaire!
4. They remain out of debt.
One of the most common fallacies is that typical millionaires view debt as a tool. Not true. If they cannot afford anything, they save up and pay for it later.
Their lexicon does not include car payments, school loans, or same-as-cash financing arrangements. That is why they win money. They owe nothing to the bank, so every dollar they make is theirs to spend, save, and gift!
Debt is the most significant barrier to wealth accumulation. That’s what we tell everyone. You should avoid it like the plague. Your dreams are too vital!
5. They set a budget.
Your budget is your plan. You cannot develop a million-dollar net worth without a strategy, folks. Success is not an accident. You are in command of your own money accumulation.
You cannot establish a million-dollar net worth without a strategy.
Building money begins with the fundamentals of budgeting, just as building a house begins with the foundation. Then you continue following them. When you’re generating a lot of money, you don’t stop managing it, correct?
Average millionaires have developed the practice of budgeting every month. They are aware of what is flowing into and leaving their financial accounts. If you just remember one thing, keep in mind that budgeting is the key to financial success. It directs each dollar where to go at the start of the month rather than wondering where it all went.
6. They live below their means and have an emergency reserve.
Many people associate the term “millionaire” with an extravagant, ultramodern estate in the Malibu hills, complete with exotic automobiles lining the driveway. But, let’s be honest, a million dollars doesn’t go very far nowadays. Most millionaires will never own a 30,000-square-foot home with a helipad and a tranquil river running through the grounds. In reality, the majority achieve billionaire status by purposefully not keeping up with the Joneses (or Kardashians, in this case).
Limiting your lifestyle is an important element of generating wealth since it allows you to invest and save for the future. Nearly half of the millionaires polled in The National Study of Millionaires indicated they save at least 16% of their monthly income, whether for an emergency fund or just to maintain some liquid cash on hand.
Pay attention, everyone. Nobody is immune to crises. As any good country music singer will say, it’s going to rain! Cars break down. Roofs leak. Companies lay off staff. That’s why you should save up an emergency fund of 3-6 months’ worth of costs so that when the rain comes, you’ll have an emergency-fund-sized cash umbrella on hand. It helps to reduce a full-fledged emergency to an annoyance.
Living below your means and saving for a rainy day aren’t simply for those attempting to get out of debt. It’s for you if you want to be wise and deliberate with your money and become a billionaire.
7. They shun “luxury” automobiles and drive them for extended periods of time.
We investigated 10,000 billionaires in the United States—the biggest study of millionaires ever conducted—and discovered that the majority of them avoided driving pricey premium brands. Instead, over one-third (31% of all millionaires) drove Toyotas or Hondas. Ford was the highest American brand, coming in third and tied with Lexus (the first luxury car mentioned) at 8%.
It’s difficult to accumulate money when your income is tied up in a $725 vehicle payment. Yes, you read that correctly. The average new auto payment is $725 with 6.58% interest. That’s crazy-land! Especially when you can make your hard-earned money work for you by investing it. It’s no surprise that many wealthy buy for their cars in cash and drive them until the wheels come off. Okay, maybe not so long, but you get the point.
If you truly want to grow wealth, you must cease investing in assets that depreciate in value, such as vehicles. What about the brand-new SUV in the driveway? Take a nice hard look. It may cost you millionaire status by the time you retire. I hope you enjoy that customized Jeep.
8. They contribute to their employer-sponsored retirement plan.
Ahhh, the good old 401(k). Investing in your employer-sponsored retirement plan may appear to be an easy method to accumulate money, but that is precisely the goal.
In fact, in The National Study of Millionaires, we discovered that 8 out of 10 millionaires cited investing in their employer-sponsored plan as their major means of becoming billionaires.
And three out of four billionaires said their money was acquired by regular, steady investing over time. No get-rich-quick scams. There are no cryptocurrencies, single stocks, or day trading. Simply make consistent monthly payments to high growth stock mutual funds.
Now, don’t be concerned if your employer does not have a retirement plan or if you work independently. You can always start a Roth IRA. Your money will grow tax-free, and with a Roth IRA (or Roth 401(k), your retirement withdrawals will also be tax-free. That’s a great deal!
9. They seek for more ways to get money.
There’s no way around it: millionaires are hustlers. They have an entrepreneurial spirit and are continually looking for new methods to generate cash. Many people run their own businesses or work side jobs to save or invest more money each month.
Many millionaires invest in real estate to generate so-called passive income. Perhaps they purchase a residential home and rent it out long-term. Alternatively, if their house is near a popular holiday destination, they may choose for short-term rentals.
from bear in mind that being a landlord is everything from passive, and you should only acquire a rental property with cash. If your objective is to become a billionaire, you don’t want to get into debt for rental property. Debt always means risk, and the riskier your investment, the more probable you are to lose it all. Then it’s back to square one, and your prospects of becoming a billionaire plummet.
10. They give.
Yes, some wealthy individuals may be greedy jerks, just like everyone else. But the billionaires who live down the street, the ones you have no idea are affluent, are some of the most kind individuals you will ever meet. We know because we have met many of them. They work hard, save money, and value the capacity of others to do the same.
Whether it’s tithing at church, donating to a charity, or simply giving to friends and family, these folks are generous. They understand that the most important thing you can do with riches is to serve others.
That is why they continue to increase their money. They understand they cannot take it with them when they die. Rather than wasting it all on the latest gadgets, they opt to bless others by giving freely. Trust us: it’s the best fun you can have with money!
Everyday Millionaires
Let’s be clear: the notion that affluent people only live in mega-mansions and wear $500 pants is a fallacy. Living a modest lifestyle while adhering to a few fundamental rules is all it takes to be financially successful. The more of these behaviors you practice, the more successful you will be with money. Simply ask Warren Buffett.
We’re here to advise you that developing wealth has little to do with your income or history. In our survey of millionaires, we discovered that the majority of them don’t look the part. The bulk live in ordinary, middle-class communities and drive modest vehicles. They’ve made sacrifices, saved, and invested. And they’d probably tell you it wasn’t easy. But it’s worthwhile.
