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A few do, of course.
But 79% of millionaires never inherited a cent, based on aRamsey Solutions studyof over 10,000 millionaires.
The overwhelming majority of millionaires built their wealth from the ground up, themselves.
Most didnt even earn huge incomes.
Only 31% of millionaires earned six-figure incomes averaged over their careers.
Lets find outhow to make the economic jump from middle to upper middle class.
One of the most transformative steps was starting a personal finance website called My Millennial Guide.
The success of the website has also enabled me to earn a substantial passive income.
Certified financial planner (CFP) Robert Persichitte ofDelagify Financialhas seen it among his clients.
His story is a testament to the power of self-initiative.
While formal education is a common route to higher earnings, he took a more direct path.
If you take the entrepreneurial route, networking becomes even more important.
No business exists in a vacuum, as Meiggs knows well.
Your wealth comes from your savings and the gap between what you spend and earn.
Persichitte said resisting the temptation of overspending helped clients get over the hump to the upper middle class.
He did a great job of avoiding the biggest mistake, lifestyle creep.
Spending more as you earn more is called lifestyle creep, Persichitte explained.
The better option is to prioritize saving especially tax-advantaged savings.
This will help propel you to the next level, which is independently wealthy.
In Meiggs case, he funneled much of his savings back into growing his business.
Christian Maldonado, founder ofFinsult, sees his successful clients do likewise.
Disciplined Investing
Youll need to put your savings to work to truly accelerate wealth building.
Maldonado expands on not just avoiding lifestyle creep but investing for compound returns.
When people start making more money, they buy liabilities instead of assets.
These seem boring but will set you up for life when done correctly.
They know that pouring back into themselves will double or even triple their income as time goes on.
As you climb each rung of the ladder, the rules and challenges change.
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