I recently finished reading The Millionaire Next Door, in which authors Thomas J. Stanley and William D. Danko summarize more than 20 years of research into the most effective wealth-building habits of real millionaires. Defense is even more importantWhile offense is important, defense (being frugal, budgeting, and planning) is even more important on the path to becoming a millionaire. Millionaires spend their time on a small number of stocks, focusing on companies they know and understand well, and then stay in it for the long haul. The typical millionaire, based on the book’s research, held about 20% of their wealth in publicly traded stocks (and never more than 30%), and had 2.5 times more money in investment real estate than in their own personal homes. You’re more likely to become a millionaire if you are self-employedThe authors found that people who are self-employed are 4 times more likely to be a millionaire than people who work for someone else.

Source: Huffington Post March 05, 2017 15:16 UTC