George Kamel, a personal finance expert and self-made millionaire, recently shared eight surprising things that millionaires do. In a YouTube video, Kamel discussed how frugality, hard work, and risk management are often important parts of their lives. According to Kamel, millionaires usually own homes that appreciate and grow their net worth.
They also tend to pay off their mortgages in an average of 10.2 years, leading to substantial interest savings. Despite misconceptions, you’re more likely to find a millionaire driving a four-year-old Ford or Honda than a luxury car like a BMW or Mercedes. Millionaires often have a lower monthly clothing budget than the typical American and use coupons.
Kamel explained that frugal clothing choices, like shopping at Target or Costco, heading to thrift stores, or even borrowing clothes from others, help in building wealth. Kamel said that millionaires prioritize having an emergency fund to protect against large, unexpected expenses. Many of them save 16% or more each month, and he recommended that anyone have at least three to six months of expenses in a high-yield savings account.
Millionaire habits for financial success
“Wealthy people don’t spend willy-nilly; they give every dollar a job,” Kamel said. Budgeting has a place regardless of wealth, and knowing your expenses and how you use your income is essential for good money management and helps avoid debt.
Millionaires understand how compound growth benefits them over time. Kamel discussed how both investments and their earnings grow, making most of a retirement fund’s value come from growth rather than direct contributions. He advises putting 15% of earnings toward investments.
According to Kamel, millionaires avoid permanent life insurance due to high commissions and fees and the loss of benefits if premiums are not maintained. He suggested term life insurance as a fraction of the cost of whole life insurance, allowing for additional investments to build wealth. Kamel also highlighted the importance of having a will, as 76% of Americans don’t have one, risking their assets not going to intended heirs.
He recommended making a will online to ensure one’s wealth is protected and distributed as desired. By following these practices, Kamel believes that anyone can take steps towards building and protecting their wealth, just like millionaires do.
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