I’m the First Millionaire in My Family: Here’s How I Did It
When you come from humble beginnings, achieving millionaire status is an incredible accomplishment. But getting there requires focus, discipline and learning from those who have walked the path before you. GOBankingRates talked to two people who are the first millionaires in their families to see exactly how they did it — and how you can, too.
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The 3 Ingredients for Building Wealth
Brian Preston, CFP, CPA and host of The Money Guy Show, credited three key ingredients for his self-made millionaire status.
“The first is discipline. You have to be disciplined and live on less than you make. In order to build wealth, you need margin and practicing discipline is what creates it,” Preston said.
The key here is to live frugually and save money as you start to build your empire — whether it be through building a business or building an investment portfolio (or a combination of both).
“The second ingredient is money. As your self-discipline creates margin, you are saving and investing that money. The third ingredient is time. Start investing early and often so that time becomes the heavy lifter for building your wealth.”
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Stay Consistent No Matter What
According to Preston, consistency is crucial, even when outside factors make you question your strategy. “One piece of advice is to always be buying. Regardless of external factors like the economy, elections or anything outside of your control, you should be consistently investing. I am always buying every month and so are my clients.”
He stressed that “creating wealth is surprisingly simple, but simple doesn’t mean it’s easy. If you can stay the path, you will become a millionaire and your future self will thank you.”
Whatever your path to millionaire status is, don’t give up and stay consistent.
Never Lose Sight of the Long Game
For Michael W. Sonnenfeldt, an accomplished serial entrepreneur and philanthropist, achieving his first millions took perseverance through the ups and downs.
“My first millions were made in the ’80s after I successfully co-led a transformation of the Harborside Financial Center in Jersey City, New Jersey,” Sonnenfeldt shared. “But it is important to remember that there were a lot of ups and downs, and we actually lost money every year at Harborside until we reached critical mass.”
He continued, “The lesson I learned is to never take our focus off our long-term goals, even during the toughest of moments, and make sure you have the resources to get to the long term!”
The Importance of a Supportive Network
As the founder and chairman of TIGER 21, an exclusive peer network for wealthy entrepreneurs and investors, Sonnenfeldt knew firsthand how critical it was to have a trusted circle when you’re the first millionaire in your family.
“What has helped me the most in preserving my wealth has been participating in TIGER 21 groups and being part of communities where we can have open conversations and share insights on what has worked and what has not,” he said.
Tips for Aspiring First-Gen Millionaires
For those looking to blaze their own trail to a seven-figure net worth, Sonnenfeldt offered this advice: “Talk to people more successful than yourself so you can get a sense of what the road you want to take actually looks like, learn from their mistakes since you will likely encounter some of the same challenges and reflect on the differences they made and the legacy you want to leave.”
The path to joining the millionaire’s club from humble roots isn’t easy. But with discipline, perseverance and wisdom from those who’ve done it, you too can defy the odds.
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This article originally appeared on GOBankingRates.com: I’m the First Millionaire in My Family: Here’s How I Did It
