Britain has around 3.6 million people with a net wealth of more than £1 million, according to the latest official research.
If you are hoping to join this exclusive club, it’s worth looking at the four habits that many of the rich have in common.
First, the average millionaire does not make money from a single income stream.
The wealthy have more than one way of making money – and in most cases, that can be as many as seven.
Author Thomas Corley researched the market and found 66% or two-thirds of the wealthy had seven income streams; 29% had at least five streams and 45% had four.
Special skills
The most popular are business income, rents from property and dividends from investments.
Many millionaires also have a special skill that makes them an expert in their chosen field.
Not only does this make them marketable within their niche, but also allows them to ask for more money from employers or to charge higher prices to customers.
Corley points out that many honed their skills at night school or other studies to invest in themselves.
Most millionaires realise that working for a boss is the slow road to becoming ultra-rich. This leads many to be self-employed where the size of the pay cheque is determined by the effort they put in and somewhere where they can fast-track to wealth.
Taking risks
Millionaires have a different attitude to risk than normal employees.
They are prepared to think out of the box. Risking everything can bring great rewards as well as pile on losses. That’s why many millionaires have flirted with bankruptcy and built their fortunes up again.
For instance, cash earns less than 1% a year and even less once inflation is considered, but stocks and shares can earn returns of 8% to 10% a year.
Corley spent five years researching the habits of the rich before he drew any conclusions.
“I discovered that daily habits dictate how successful or unsuccessful you will be in life,” he said. “There is a cause and effect associated with habits. Habits are the cause of wealth, poverty, happiness, sadness, stress, good relationships, bad relationships, good health, or bad health.”
