Which Factors Have the Greatest Effect on Your Wealth?

Which Factors Have the Greatest Effect on Your Wealth?

Who doesn’t want to be wealthy? They say money doesn’t buy happiness but it sure doesn’t hurt. However, the gap between wanting to be wealthy and actually becoming wealthy is quite vast for most people. But why is that? Why are so many people unsuccessful at achieving wealth? The answer might lay in six simple wealth factors that play the biggest role in becoming wealthy.

The Key Factors to Wealth

If you spoke with the world’s richest people and asked them what makes the biggest difference in their success, you’d likely get numerous different answers. But at the same time, you’d also notice several commonalities in their responses. And it’s these common factors that really have the greatest impact in whether or not people become wealthy. So what are these wealth factors? Let’s take a closer look.

According to research from Sarah Stanley Fallaw, director of research for the Affluent Market Institute, these six factors play the biggest role in determining a person’s wealth. The good news is anyone can become wealthy if they’re willing to put in the work. Stanley Fallaw surveyed more than 600 millionaires in America for herstudy called: “The Next Millionaire Next Door: EnduringStrategies for Building Wealth.”Here’s what she found.

1. Frugality–

wealthy people don’t waste their money. They are committed to saving more and spending less. They create a budget and they stick to it.

2. Confidence–

wealthy people are confident in their ability to manage their finances, including their investments. They also manage their household finances and they’re confident in their leadership at home.

3. Responsibility–

wealthy people take responsibility for their own wealth. They don’t think things happen by chance. In fact, they don’t think things “happen to them.” They determine their own financial outcomes and they don’t adhere to the principle or mindset of luck.

4. Planning–

wealthy people plan. They plan for their financial goals and future. They know where they want to be and they create a plan to get there.

5. Focus–

speaking of goals and plans, wealthy people have extreme focus. Once they’ve created a goal and a plan to achieve it, they don’t stop until they get there. They do what it takes to see their plan through to completion, without getting distracted.

6. Social Indifference–

wealthy people don’t care what society thinks. In other words, they don’t give into peer pressure or societal norms that go against their own plans. Succumbing to social pressure is not in their playbook. Even when the world says you have to have this and you must buy the latest and greatest thing, wealthy people make decisions based on their goals and plans.

Anyone Can Become Wealthy

According to the study, these six factors have the greatest influence on a person’s wealth, no matter a person’s age or income. That means anyone can become wealthy if they apply these wealth factors to their own situation. So, are you ready to become wealthy, or wealthier? Start by determining which of these factors you need to implement or improve on in your own life.

We hope you found this article about “Which Factors Have the Greatest Effect on Your Wealth?” helpful.  If you have questions or need expert tax or family office advice that’s refreshingly objective (we never sell investments), please contact us or visit our Family office page or website www.GROCO.com.

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Alan Olsen, is the Host of the American Dreams Show and the Managing Partner of GROCO.com.  GROCO is a premier family office and tax advisory firm located in the San Francisco Bay area serving clients all over the world.

Alan L. Olsen, CPA, Wikipedia Bio

 

 

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