The following statement is harsh but true:
Most individuals are not going to become affluent because they take the easy way out in the majority of their financial decisions.
- Putting off investing in your ROTH IRA or maximizing your 401k at work (I need the extra money to fake success for my friends and family.
- Hating your boss and job, but doing nothing to change your situation (scared to try something new and the interviewing process for a new job is stressful)
- Putting off the dream of being self employed (where will I get clients from and how do I get started) ** Renting your life and not have an ownership mentality (I really like my low rent payments and driving a flashy car)
THE SECRET TO SUCCESS IS THROUGH DEFERRED GRATIFICATION AND TAKING THE ROAD LESS TRAVELED
Who are the affluent? (from THE MILLIONAIRE NEXT DOOR; Stanley & Danko)
- The majority of wealthy families are business owners including self-employed professionals
- 20% of affluent households are retirees ** Of the remaining 80% more than 2/3 are headed by self-employed owners of businesses
- In the US only about 18% of households are headed by a business owner, but the business owner is four times more likely to be a millionaire than the families that work for others.
- According to the US Small Business Administration, over 50% of small businesses fail in the first year and 95% fail within the first five years.
- Small business owners work on average 52 hours a week vs. 34.2 of the average American production employee according to a 2000 study by New York marketing firm Willard & Shullman.
- Before you make the jump make sure you check out the following resource from the United States Small Business Administration: “Are you ready?”
As a side note are you curious to know what the wealthy tell their children to become?
Willy and Waylon had it right with “Mammas Don’t Let Your Babies Grow Up to Be Cowboys”. “Let them be doctors, lawyers and such!”
According to The Millionaire Next Door millionaires advise their children to become self-employed professionals.
- Physicians, attorneys, engineers, architects, accountants, and dentists.
- Wealthy families are five times more likely to send their children to medical school and four times more likely to send them to law school over other parents in the US.
According to a column by Jonathan Clements in the 8/16/06 WSJ Personal Journal “money alone does not buy a whole lot of happiness”. Research in the column stated that our absolute level of wealth and income did not influence our happiness. It is how our financial situation compares with friends and colleges.
From my experience of working with Wealthy Families I think that the column missed the true secret to happiness…. FULFILLMENT
Taking the Road that is less traveled and then succeeding is a very powerful influence on your life.
Need proof ask any successful business owner to recall the first five years they were in business and be prepared to watch a glow cover their face and a sparkle come to their eye. They took on a substantial risk and conquered the task resulting in happiness and financial independence.
THE SECRET TO LIFE IS PERSONAL FULFILLMENT!