Which Factors Play the Greatest Role in Determining Wealth?

Which Factors Play the Greatest Role in Determining Wealth?

By Alan Olsen

For most people, becoming rich is just a dream. Most people simply hope or wish to become wealthy, but never actually achieve this dream. If given the chance, everyone would choose to be wealthy, right? Who’s going to turn down huge amounts of money? But obviously, there’s a big difference between wanting to be wealthy and actually being wealthy. So what sets wealthy people apart from the rest of the world? Why do such a small percentage of people become wealthy? What’s their secret?

Wealthy Share Common Characteristics
Many studies have been done regarding the wealthy and what makes them successful? And after countless research, it really all boils down to a few simple factors. You can call them wealth factors. According to a study from the Affluent Market Institute, “The Next Millionaire Next Door: Enduring Strategies for Building Wealth,” if you possess these few attributes you might be more likely to become rich. So what are these characteristics or behaviors?

Confidence – wealthy people have confidence. They’re confident in themselves, in investing, and in their financial management and abilities. They trust themselves to do things right with their money, and they usually do.

Focus – wealthy individuals are very focused. They set their goals and they establish a plan to see their goals through to completion. They don’t get distracted by other things or lose their focus on the end goal. They stick to it until the job is done.

Frugality – obviously, wealthy people have to be smart with their money. They don’t get wealthy by mindlessly blowing it on random things. They’re careful with their budgets. They spend less and save more. In the end being frugal is one of the most important factors in helping someone achieve financial independence.

Responsibility – the research found that wealthy people also take responsibility. They don’t blame others when things go wrong. They understand and accept that ultimately they’re responsible for their own outcomes. It’s their money and they don’t allow things to be determined by chance, or luck.

Planning – Planning goes hand in hand with being focused and taking responsibility. Wealthy people plan ahead. They never stop evaluating their plan and adjusting it when necessary. They set their goals, make their plans to achieve them, and then stay focused until they succeed. And again, they take responsibility for their outcomes because they came up with the plan. They don’t blame others if their plans don’t work out. Instead, they learn and then create a new plan.

Social Indifference – how many times have you felt like you had to have the latest and greatest thing? It could be the newest smartphone, or an amazing car, or some other exciting new tech gadget. The problem is, when you allow yourself to be influenced by others, you let others dictate your actions. Wealthy individuals don’t let the latest trends determine their actions. They aren’t swayed by popular culture and they don’t feel pressure to buy things just because everyone else does. They stay true to what they know works instead of following every “next big thing.”

We hope you found this article about “Which Factors Play the Greatest Role in Determining 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 our website at www.GROCO.com.  Unfortunately, we no longer give advice to other tax professionals gratis.

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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

GROCO.com is a proud sponsor of The American Dreams Show.

The American Dreams show was the brainchild of Alan Olsen, CPA, MBA. It was originally created to fill a specific need; often inexperienced entrepreneurs lacked basic information about raising capital and how to successfully start a business.

Alan sincerely wanted to respond to the many requests from aspiring entrepreneurs asking for the information and introductions they needed. But he had to find a way to help in which his venture capital clients and friends would not mind.

The American Dreams show became the solution, first as a radio show and now with YouTube videos as well. Always respectful of interview guest’s time, he’s able to give access to individuals information and inspiration previously inaccessible to the first-time entrepreneurs who need it most.

They can listen to venture capitalists and successful business people explain first-hand, how they got to where they are, how to start a company, how to overcome challenges, how they see the future evolving, opportunities, work-life balance and so much more..

MyPaths.com (Also sponsored by GROCO) provides free access to content and world-class entrepreneurs, influencers and thought leaders’ personal success stories. To help you find your path in life to true, sustainable success & happiness.  It’s mission statement:

In an increasingly complex and difficult world, we hope to help you find your personal path in life and build a strong foundation by learning how others found success and happiness. True and sustainable success and happiness are different for each one of us but possible, often despite significant challenges.

Our mission at MyPaths.com is to provide resources and firsthand accounts of how others found their paths in life, so you can do the same.