The wealthy share some attitudes and habits, and almost all live below their means. But they're also very different, with some governed by fear and others by altruism.
By Laura Bruce, Bankrate.com
Every year, The Phoenix Cos. surveys wealthy people to see how they feel about the economy, their financial goals and the like. The survey ultimately is aimed at selling them financial products, but when the Phoenix folks toss all the data in the hopper, it spits out some interesting information on demographics, attitude and tendencies -- a wealth personality of sorts.
For the survey, wealth is defined as having $1 million or more of net worth, not including the primary residence.
"Most millionaires today don't have inherited wealth. They're not driving a Jag and they're not flamboyant or flashy. They work hard, they're frugal and they save and invest well," says Walt Zultowski, senior vice-president of business and market development at The Phoenix Cos.
Living below their means
"It's not enough to stick your money under your mattress. You have to invest, but you have to do it wisely. Few hit it big hitting a stock. It's a discipline. The message is one of steady habits as it relates to savings and investing. Living below your means is a key point, whether we're talking about someone with $1.2 million or $80,000. There's clearly also a work ethic; you hear a lot of these people say work is a joy."
The survey came up with six wealth personalities: Satisfied Savers, Status Chasers, Altruistic Achievers, Secret Succeeders, Disengaged Inheritors and Deal Masters. Most of the personalities share some positive characteristics: They work hard, live below their means and know how to make their money work for them. On the other hand, some of them are so worried about losing money that it's a source of daily concern.
Want to see which traits you have in common with millionaires?
Satisfied Savers
These are the folks you would love to have as your parents or grandparents -- happy, well-adjusted, and rich! They make up 24% of the wealthy population and share these characteristics.
Average age: 60
Built wealth through hard work, by living below their means and taking moderate risks
Financially savvy
Lost relatively little in the bear market
Know how to make their money work for them
Enjoy making a difference through charitable efforts
Status Chasers
You've met them. You may envy their possessions, but you wouldn't want to be them. They comprise 18% of the wealthy population.
Average age: 55
Achieved wealth through work and some inheritance
Want it all but haven't been able to achieve their major goals yet
Define wealth as a level three times their current net worth
Pessimistic about their own financial future
Less financially knowledgeable than their counterparts
Think of financial situation daily as a source of concern
Altruistic Achievers
These are the do-gooders of the bunch. Most of us can learn from them. Roughly 17% of the wealthy population is composed of the philanthropists who share these qualities.
Average age: 54
Achieved wealth through work, some inheritance, good investments, owning a business, and living below their means
Self-made, driven to succeed, work hard, take risks
Use their wealth to help the less fortunate
Lack the time, interest and know-how to manage finances; rely on professional management
Lost the most in the bear market
Only one-quarter plan to retire completely
Secret Succeeders
These people worked hard and had some luck and should be very happy, but they're not. They make up 17% of the wealthy population.
Average age: 55
Self-made: built fortunes through working in professional and managerial positions, making one or two particularly good investments and not spending
Live below their means
Suspicious of showing their wealth -- fear they'll lose it
Among the least charitable
Group includes the greatest percentage that admit they'll do whatever it takes, including compromise principles, to stay ahead
Not especially financially savvy, but having financial control is key
Somewhat optimistic about their financial futures
Disengaged Inheritors
Fortunately, not all who inherit money fall into this category. These folks are proof that having money doesn't necessarily mean you're happy. They compose 13% of the wealthy population.
Average age: 58
Received and built their wealth largely through inheritance, and living below their means
Second-wealthiest and second-oldest group
Lack the goals and drive to succeed
Think about their financial situation the least out of apathy and ambivalence
Not charitable, generally unhappy
Least financial know-how of the high-net worth segment
Deal Masters
The Donald Trumps of the world. "You're fired!" No, actually, if you have a fairly strong personality, these folks would be fun to know. They make up 11% of the wealthy population.
Average age: 49
Have amassed the greatest wealth, self-made, self-reliant
Built wealth by setting goals, working hard, being persistent, taking risks, relying on their own financial know-how
Segment comprises the largest number of small business owners
"Winner takes all" attitude
Confident and optimistic
Enjoy the challenge of making money
Think about financial situation daily -- source of challenge, fun, and happiness
Lost the least in the bear market
One of the least charitable groups
Living their dream, little inclination to stop working
62% would rather be stressed than have nothing to do
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