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Published Mar 13, 22
4 min read

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But 20% can be a big ask, especially for first-time buyers. The median sale price for existing homes was $350,300 in January, according to the National Association of Realtors; a 20% down payment would be just over $70,000. In the past few years, the typical down payment for first-time buyers has been 6% to 7%, according to the NAR.

There are two types of millionaires: self-made millionaires and those born into wealth. More than two-thirds of individuals with a net worth of $30 million or more are considered "self-made."No matter how millionaires get their money, they all share some core traits, including prioritizing savings and diversifying investments. Most of today's millionaires weren't born into their wealth, research shows.

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Further, a second study by Fidelity Investments found that 88% of all millionaires are self-made, meaning they did not inherit their wealth. The Fidelity study also revealed that self-made millionaires' top sources of assets were investments/capital appreciation, compensation and employee stock options/profit sharing. This path is markedly different from those who inherited their wealth, who are more likely to cite entrepreneurship, real estate investment appreciation and the inheritance itself as asset sources.

What do some of these self-made millionaires have in common, and what lessons can you learn for your own investment strategy? The Fidelity study results showed that even though millionaires have different ways of making money, they often share these traits:Self-made millionaires put their ideas and dreams into action, whether that's starting a business or achieving other professional or personal pursuits.

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Many self-made millionaires are quick to admit that they cannot possibly know how to do everything. They reach out to others who know the ins and outs of different types of saving and investing, tapping into the best minds on each subject for perspective and insight. That certainly pays off.

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Time is money, and millionaires know this all too They quickly learn how to manage their time, and they know that there is no reason to trade time for money. Surveys show that millionaires share many traits in common, including ambition, the value of time, not being afraid of failure, and knowing when to ask the experts for help.

Diversifying those investments is key among many millionaires. Millionaires put their money in a variety of places, including their primary residence, mutual funds, stocks and retirement accounts. Millionaires focus on putting their money where it is going to grow. They are careful not to invest large sums into items that will depreciate.

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The key for most millionaires is to save money before spending it. No matter how much their annual salary may be, most millionaires put their money where it will grow, usually in stocks, bonds, and other types of stable investments. Millionaires put their money into places where it will grow such as mutual funds, stocks and retirement accounts.

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Perhaps one of the most famous and richest people in the world – and technically a billionaire and not a millionaire -- Warren Buffett still merits a mention in this list because he is well known for being self-made. The Berkshire Hathaway chairman and CEO made his first millions by running a hedge fund and is known for his principled and sensible approach to investing.

Here are a few that you can learn from yourself:Invest in different places and avenues, Don't put your eggs in one basket. Diversifying your investments helps manage risk by ensuring that all your money is not at risk if a particular investment goes south. Have multiple streams of income, Many self-made millionaires have money coming in from several places, including their salaries, dividends from investments, income from rental properties, and investments they have made in other business enterprises, to name a few examples.

Much of this is called passive income, or money being earned without actively spending time and effort in the enterprise. Save, save, save, One common theme you'll hear from self-made millionaires is to hold on to your money. Put your money in investment accounts where it can sit and earn interest over time (even though interest rates are much lower than they used to be).

When you buy bonds, you are lending your money to a federal or state agency, municipality or other issuer, such as a corporation. A bond is like an IOU. The issuer promises to pay a stated rate of interest during the life of the bond and repay the entire face value when the bond comes due or reaches maturity.

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