Millionaire Behaviors That Most People Wouldn’t Believe

Millionaire Behaviors That Most People Wouldn’t Believe

Welcome to a fascinating exploration of the real-life habits and traits of self-made millionaires, a topic that often sparks curiosity and disbelief. The journey to substantial wealth accumulation is shrouded in misconceptions and myths.

Contrary to popular belief, the path tread by many self-made millionaires is not commonly lined with extravagant spending, high-profile careers, or substantial inheritances. Instead, it’s marked by behaviors and practices that might seem at odds with their affluent status.

This article delves into these unexpected habits, highlighting the fundamental, often understated strategies that lead to financial success. Through research and insights from studies conducted by financial experts like Dave Ramsey, Thomas Stanley, and Thomas Corley, we uncover the truth behind what propels an individual into the millionaire bracket – and it’s not always what you might think.

12 Habits of Self-Made Millionaires:

  1. Living Below Their Means: Millionaires often lead frugal lifestyles, spending less on luxury items like cars, watches, and clothing.
  2. Investing Consistently and Wisely: They invest regularly in long-term opportunities like 401(k) plans, stocks, private businesses, and venture capital.
  3. Avoiding Debt: Many millionaires are cautious about debt and avoid carrying credit card balances.
  4. Residing in Middle-Class or Blue-Collar Neighborhoods: Contrary to expectations, many millionaires live in modest, not affluent neighborhoods.
  5. Moderate Incomes and Careers: Many millionaires have had reasonable salaries in engineering, teaching, and management professions.
  6. College Education from Public State Schools: Most millionaires have college degrees, often from public state schools rather than prestigious private institutions.
  7. Minimal Inheritance: A large majority did not receive substantial inheritances, challenging the notion that wealth is usually inherited.
  8. Simple Spending Habits: Many use practical tools like shopping lists and spend conservatively on everyday items.
  9. Avoiding Status Symbols: They generally avoid spending on status symbols and luxury goods, recognizing these as depreciating assets.
  10. Focus on Financial Independence, Not Owning Things: The goal is often financial freedom and security rather than accumulating luxury items or wealth for its own sake.
  11. Generational Wealth Patterns: Wealth tends to diminish in subsequent generations, with the first generation being the most frugal and hardworking.
  12. Teaching Financial Responsibility: Millionaires often ensure their children learn about money management, budgeting, and investing.

Keep reading for a deeper dive into common self-made millionaire behaviors based on studies and research.

1. Embracing Frugality

Many millionaires lead surprisingly frugal lifestyles, especially when building wealth, a stark contrast to the lavish lifestyle often portrayed in media. This behavior stems from the understanding that accumulating wealth is more about saving and investing than earning. Dave Ramsey’s study indicates that 94% of millionaires live on less than they make, and nearly three-quarters have never carried a credit card balance.

2. Consistent and Wise Investing

Wealth accumulation often comes from consistent, long-term investments. Ramsey’s research shows that 8 out of 10 millionaires invested in their company’s 401(k) plan while employed, with 75% attributing their success to regular, consistent investing over time. Rather than quick riches, this disciplined approach to investing is critical to building lasting wealth. This is the slow lane to wealth but the highest probability path to being a millionaire over your career.

3. Shunning debt

Avoiding and effectively managing debt is a common trait among millionaires. They often avoid high-interest debt and focus on paying off debts quickly. Ramsey’s study reveals that nearly three-quarters of millionaires have never carried a credit card balance, highlighting their cautious approach to debt.

4. Choosing Modest Neighborhoods

Many millionaires prefer living in middle-class or blue-collar areas. This choice aligns with their frugal lifestyle and aversion to spending on status symbols. Thomas J. Stanley’s “The Millionaire Next Door” indicates that millionaires are more commonly found in middle-class and blue-collar neighborhoods than affluent communities. Many people who buy the most prominent house possible in the most expensive neighborhood are high-income earners but not net-worth millionaires.

5. Earning Moderate Incomes

Becoming a millionaire does not always require high salaries. Many come from modest professional backgrounds. Ramsey’s study found that only 31% of millionaires averaged $100,000 a year over their career, challenging the notion that high-paying jobs are the only path to wealth.

6. Valuing Public Education

A significant number of millionaires have degrees from public state schools. Ramsey’s study shows that 62% of millionaires graduated from public state schools, suggesting that while education is essential, the institution’s prestige is less critical. There is another typical pattern: many self-made billionaires are sent to top private schools as children by their millionaire parents. Mark Zuckerberg and Bill Gates are some famous examples.

7. Limited Reliance on Inheritance

Most millionaires do not inherit their wealth. Ramsey’s research indicates that 79% of millionaires received no inheritance, debunking the myth of wealth being typically inherited.

8. Practicing Controlled Spending

Millionaires are often meticulous about their spending. Ramsey’s findings show that 85% of millionaires rely on a grocery list, reflecting their focus on conserving resources for wealth accumulation.

9. Avoiding Status Symbols

Rather than spending on luxury goods, self-made millionaires often avoid these depreciating assets. The “The Millionaire Next Door” study indicates that they commonly believe buying or leasing new, expensive imported vehicles and other branded consumer goods is considered poor value.

10. Seeking Financial Independence Over Accumulating Possessions

For many millionaires, the ultimate goal is financial freedom and security, not accumulating luxury items or a high net worth for its own sake. This mindset drives their financial decisions and lifestyle choices, focusing on long-term financial stability rather than short-term gains. Most self-made millionaires focus on get-rich-slow strategies with the highest probability of success.

11. Generational Wealth Trends

Generational wealth management varies in millionaire families. “The Millionaire Next Door” highlights a “Generational Wealth Destruction pattern,” where the first generation is the most frugal, and subsequent generations may become more lavish in spending.

The “shirtsleeves to shirtsleeves in three generations” adage, which describes the inability of grandchildren to manage the wealth passed down to them from their grandparents and parents, has been a pattern of wealth accumulation and then loss. It’s common to see this saying play out with millionaire families: “The first generation makes it, the second generation spends it, and the third generation blows it.”

12. Teaching Financial Responsibility to Children

Financial education is emphasized in millionaire households. Children are often taught about money management, budgeting, and investing, ensuring the continuation of prudent financial habits and avoiding the pitfalls of economic dependence observed in less wealthy families. These lessons can tend to fade over multiple generations as children don’t understand where the money came from in the first place.

13. The Role of Discipline and Hard Work

Discipline and hard work are foundational to becoming a millionaire. These traits are evident in how millionaires approach their careers, finances, and life choices, often prioritizing long-term goals over immediate gratification. Most personal financial results are an exercise more in discipline and hard work than math.

14. The Myth of Extravagant Lifestyles

The perceived extravagant lifestyles of millionaires are often a myth. In reality, many lead modest lives, focusing more on financial stability and growth than on displaying wealth, as highlighted in “The Millionaire Next Door.” Building wealth is a focused and low-key process for most self-made millionaires, contrary to many movies and get-rich-quick promoters.

Key Takeaways

  • Prudent Spending: Wealthy individuals often exhibit careful and judicious use of resources, avoiding lavish expenditure.
  • Strategic Investment: A common trait is the systematic and thoughtful allocation of funds into diverse investment vehicles.
  • Debt Aversion: A preference for minimizing liabilities and avoiding unnecessary credit.
  • Unassuming Residential Choices: A tendency to reside in modest communities rather than wealthy areas.
  • Modest Earnings Path: Many accumulate significant assets without the necessity of exorbitant salaries.
  • Merit in Public College Education: A high value placed on education obtained from accessible, state-funded institutions.
  • Self-Made Financial Growth: A predominant trend of wealth creation through personal effort rather than inheritance.
  • Calculated Consumption: A consistent pattern of deliberate and planned purchasing decisions.
  • Disregard for Ostentatious Display: Avoiding the trap of constantly updating with high-end, branded items.
  • Pursuit of Fiscal Freedom: Prioritizing long-term financial security over accumulating material possessions.
  • Patterns of Wealth Across Generations: Observing a shift from Frugality in initial generations to potential lavishness in later ones.
  • Cultivation of Financial Literacy in Offspring: Imparting the importance of money management to the next generation.
  • Hard Work and Determination: Recognizing the critical role of steadfast dedication and labor in achieving financial success.
  • Debunking Wealth Myths: The three studies challenge the misconception of universally extravagant millionaire lifestyles.


In essence, the journey to amassing wealth often contradicts popular perceptions. It’s not necessarily paved with big inheritances or high-profile vocations but is rooted in thriftiness, astute financial planning, and steadfast commitment to personal and professional growth.

The narrative of the self-made millionaire is marked not by extravagance but by a strong ethos of resourcefulness, investment understanding, and a vision for long-term financial sustainability and growth.

This exploration into the lives of the self-made financially affluent reveals consistent patterns created with simplicity, intelligent risk-taking, and an enduring focus on financial independence, offering insightful lessons for those aspiring to similar success in growing their net worth and creating freedom.