"Unlocking Millionaire Status: 5 Essential Habits Revealed"
The average net worth among U.S. households in 2022 was $1,063,700, but the median net worth was just $192,900, indicating most Americans are not close to being millionaires. Millionaires share money habits with regular folks: they save, invest, and set clear financial goals. They tend to own assets that appreciate over time, like real estate.
Houses are a prime example of assets that appreciate, while cars typically lose value. Millionaires often opt for used vehicles, saving on purchase and operating costs. Homeowners benefit from rising property values, but buyers should secure an affordable mortgage rate. Shopping around for home insurance could save an average of $482.
Most millionaires attended college, but only 8% went to prestigious private schools. Attending a less expensive college can reduce debt and free up money for investing. Refinancing student loans could also help manage debt. Investing is key for millionaires, with 80% contributing to their employer’s 401(k) plan.
Credit cards can be useful, but high balances with high interest rates can hinder wealth accumulation. Most millionaires pay their credit cards in full monthly. Charging expenses to earn cash back rewards is fine, as long as balances are paid off. Alternatives like a Home Equity Line of Credit (HELOC) can offer lower interest rates for borrowing.
Consolidating bills with a HELOC can simplify payments and potentially save money over time. Moneywise offers actionable finance tips and news through a free newsletter. The key to wealth building for millionaires is saving, investing, and making smart financial decisions.
Read more at Yahoo Finance: Almost every millionaire in America has these 5 things. Here’s what it takes to get them all.