What separates self-made millionaires from everyone else? While luck and timing certainly play a role, research reveals that wealthy individuals share specific habits and characteristics contributing to their financial success. Understanding these common traits can provide valuable insights for anyone looking to build wealth and achieve financial independence.
Here are the ten things most self-made millionaires have in common, according to research:
1. They Read Constantly
Self-made millionaires are voracious readers who prioritize learning over entertainment. According to research by Thomas Corley in his “Rich Habits” study, 88% of wealthy individuals dedicate at least 30 minutes each day to self-education through reading, compared to only 2% of those struggling financially who do the same.
Millionaires’ reading preferences lean heavily toward nonfiction materials that enhance their knowledge and skills. They gravitate toward biographies of successful people, self-improvement books, historical accounts, and industry-specific publications. This habit of continuous learning helps them stay ahead of trends, make informed decisions, and identify new opportunities in their respective fields.
Warren Buffett, one of the world’s most successful investors, famously attributes much of his success to reading. He reportedly spends 80% of his working day reading and has advised others to “read 500 pages daily.” This commitment to knowledge acquisition demonstrates how seriously successful individuals take their intellectual development.
2. They Maintain Multiple Income Streams
Research indicates that self-made millionaires don’t rely on a single source of income. Instead, they cultivate an average of seven different income streams, creating a diversified financial portfolio that provides security and growth potential.
These income sources typically include their primary salary or business profits, investment returns, rental income from real estate, royalties from intellectual property, dividend payments from stocks, interest from savings, and side business ventures. According to Tom Corley’s study, 65% of self-made millionaires had at least three income streams before earning their first million dollars.
Building multiple income streams isn’t about getting rich quickly. Successful individuals develop these revenue sources gradually, often starting with one stable income and systematically adding others as opportunities arise. This approach reduces financial risk and accelerates wealth accumulation through compound growth.
3. They Live Below Their Means
Despite their wealth, most self-made millionaires practice remarkable financial discipline. The groundbreaking research in “The Millionaire Next Door” by Thomas Stanley and William Danko revealed that wealthy individuals typically live well below their means, often in middle-class neighborhoods and driving modest vehicles.
This frugal mindset extends to all aspects of their financial lives. Many millionaires continue using coupons, shopping during sales, and avoiding unnecessary luxury purchases. They understand the critical difference between looking wealthy and being wealthy, prioritizing long-term financial security over short-term status symbols.
A key habit among wealthy individuals is saving and investing at least 20% of their income, regardless of how much they earn. They resist lifestyle inflation – the tendency to increase spending as income rises – and instead direct additional earnings toward investments and wealth-building activities.
4. They Exercise Regularly
Physical fitness plays a crucial role in the success habits of self-made millionaires. Tom Corley’s research found that 76% of wealthy individuals engage in aerobic exercise for at least 30 minutes each day. This commitment to physical health isn’t just about staying fit; it’s about maintaining the energy and mental clarity needed for business success.
Common exercises among successful individuals include running, cycling, swimming, and structured gym workouts. Many use their exercise time to think through business problems, plan their day, or listen to educational podcasts and audiobooks. This dual-purpose approach maximizes the value of their workout time.
The discipline required to maintain a regular exercise routine translates directly to business and financial discipline. Regular physical activity also provides stress relief, boosts cognitive function, and increases overall energy levels – all essential for sustaining the demanding lifestyle of wealth building.
5. They Surround Themselves With Successful People
Jim Rohn’s famous observation that “you are the average of the five people you spend the most time with” resonates strongly with self-made millionaires. Wealthy individuals intentionally cultivate relationships with other successful, ambitious people who share their values and drive.
This selective approach to relationships extends beyond casual friendships. Successful individuals actively participate in mastermind groups, professional associations, and high-level networking events where they can connect with peers and mentors. They understand that success habits and mindsets are contagious, and surrounding themselves with achievement-oriented people creates a positive feedback loop of motivation and opportunity.
Equally important is their willingness to distance themselves from negative influences. Self-made millionaires avoid relationships with people who discourage their ambitions, promote limiting beliefs, or engage in destructive behaviors. They recognize that their social environment significantly impacts their mindset and ultimate success.
6. They Set and Pursue Specific Goals
Goal setting is a fundamental practice among self-made millionaires. Research shows that 80% of wealthy individuals are focused on achieving specific goals, compared to only 12% of those struggling financially. This goal-oriented mindset creates direction and purpose in their daily activities.
Successful individuals typically follow the SMART goal-setting framework: Specific, Measurable, Achievable, Relevant, and Time-bound. They write their goals, review them regularly, and adjust them as circumstances change. This written commitment increases accountability and keeps their objectives at the forefront of their decision-making.
Beyond setting long-term visions, millionaires excel at breaking significant goals into actionable daily tasks. They understand that extraordinary achievements result from consistent, focused effort over time. This systematic approach to goal pursuit ensures steady progress and maintains motivation through small, regular wins.
7. They Develop Multiple Skills
Self-made millionaires rarely rely on a single skill set. Instead, they become what’s known as “expert generalists” – individuals with deep expertise in one area combined with competency across multiple disciplines. This diverse skill set allows them to create unique value propositions and adapt to changing market conditions.
Common skill combinations among successful individuals include technical expertise paired with business acumen, creative abilities balanced with analytical thinking, and industry-specific knowledge complemented by leadership capabilities. These diverse competencies enable them to see opportunities others miss and solve complex problems innovatively.
The commitment to lifelong learning drives this skill development. Wealthy individuals continuously acquire new abilities through formal education, self-study, mentorship, and practical experience. They view skill acquisition as an investment in their future earning potential rather than an expense.
8. They Take Calculated Risks
Contrary to popular belief, self-made millionaires aren’t reckless gamblers. They’re calculated risk-takers who carefully evaluate potential opportunities before committing resources. This measured approach to risk distinguishes them from overly cautious individuals who miss opportunities and impulsive risk-takers who lose everything.
Before making significant decisions, successful individuals conduct thorough research, analyze potential outcomes, and develop contingency plans. They assess risk-reward ratios and only proceed when the potential benefits substantially outweigh the possible downsides. This might involve starting a business, making strategic investments, or pursuing career changes that others might consider too risky.
Importantly, wealthy individuals view failure as education rather than defeat. When calculated risks don’t pan out as expected, they extract valuable lessons and apply them to future decisions. This resilient mindset allows them to take intelligent risks without being paralyzed by fear of failure.
9. They Focus on Providing Value
At the core of wealth creation lies a simple principle: solving problems for others. Self-made millionaires understand that sustainable wealth comes from providing exceptional value to customers, clients, or employers. They constantly seek ways to improve lives, streamline processes, or fulfill unmet needs in the marketplace.
This value-focused approach extends beyond mere transactions. Successful individuals build long-term relationships based on trust and mutual benefit. They seek feedback to improve their products or services and prioritize customer satisfaction over short-term profits. This commitment to excellence generates loyal customers, positive referrals, and sustainable business growth.
Wealthy individuals also recognize that providing value isn’t limited to their primary business. They contribute to their communities, mentor others, and share their knowledge generously. This abundance mindset creates a positive cycle where giving value leads to receiving value in return.
10. They Practice Delayed Gratification
A defining characteristic of self-made millionaires is their ability to postpone immediate pleasure for long-term gain. This trait, which is famously demonstrated in the Stanford Marshmallow Experiment, correlates strongly with life success across multiple domains, including wealth accumulation.
Successful individuals routinely make choices that prioritize future benefits over present comfort. They reinvest business profits instead of spending them on luxuries, live in modest homes while building their wealth, and drive older vehicles despite being able to afford new ones. This disciplined approach allows them to accumulate capital for investments and business opportunities.
The practice of delayed gratification extends to their understanding of compounding gains and long-term wealth building. Self-made millionaires avoid get-rich-quick schemes and focus on steady, sustainable growth strategies. They understand that actual wealth accumulation is a marathon, not a sprint, requiring patience and persistent effort over many years.
Conclusion
The journey to becoming a self-made millionaire isn’t about luck or inheritance – it’s about cultivating specific habits and mindsets that promote wealth creation. These ten characteristics, validated by extensive research, provide a roadmap for anyone aspiring to achieve financial success.
While implementing all these habits simultaneously might seem overwhelming, the key is to start small and build gradually. Begin with one or two practices that resonate most strongly with your current situation. As these behaviors become ingrained, add others incrementally. The compound effect of these positive habits, maintained over time, can lead to extraordinary financial results.
Success leaves clues, and the research on self-made millionaires provides clear insights into the behaviors contributing to wealth creation. By understanding and adopting these common traits, you can significantly increase your chances of achieving your financial goals and joining the ranks of self-made millionaires with your own success story.