There is a small group of U.S. citizens that are earning the majority of the country's income. In fact,
TIME reports that in 2017, 1 of every 5 dollars generated that year went into the bank accounts of this group of people. They are commonly known as the “one percent”. Their income varies from state to state, but according to the most updated
report from the Economic Policy Institute, their average annual income surpasses the $1.2 million mark. Who are these people? More importantly, there must be something that sets them apart from the other 99 percent. What are they doing to stay on top?
There is no tutorial out there on “How to Become a One Percenter.” However, it’s worth taking a look at the habits that are keeping them on top.
Tom Corley, an authority on this subject,
interviewed 233 rich individuals in a span of three years to analyze their habits and what sets them apart from the rest. He found that of the 233 millionaires, 177 were self-made
CNBC article, Corley highlights commonalities of the wealthy. Here, DiversyFund
reviews the top three lessons the wealthy can teach us, based on Corley’s findings:
Like What You Do
Almost 90 percent of Corley’s interviewees like what they do for a living. When people work on something that they enjoy, they will invest time in trying to get better at it. Passion has transformed many people from employees to successful entrepreneurs.
Dedicating eight hours per day to something just for a paycheck makes work a daily burden. Those who make up the one percent managed to either work on something they like or find joy in what they do.
Set Long-Term Goals
Successful people set long-term goals and let their desire to accomplish these goals drive their every action. Whether investing for their future or pursuing a dream, they stay focused on achieving their established goals while also enjoying the journey.
The key to reaching your goals is to identify what you ultimately want to accomplish, break down what it’s going to take to get there and focus on taking whatever action you can in the present. When you take it one step at a time, you’re more likely to see
the desired outcome in the future.
Make Smart Money Decisions
As obvious as it might sound, it’s important to keep in mind the importance of money management habits. Successful individuals save and are frugal with their money. Nearly 95 percent of the high net worth individuals who participated in Corley’s study report
saving at least 20 percent of their income annually. In addition to saving, the wealthy are frugal. You must spend your money thoughtfully.
The one percent may vary tremendously, but it seems that most of them have a few things in common. They like what they do, they are focused on long-term goals, and they are smart and frugal with their money.