Millionaires, especially self-made millionaires whose wealth wasn’t inherited, have five particular personality traits, according to new research. The five personality traits that are particularly standout are: risk-taking, emotional stability, openness, extraversion and conscientiousness. What’s even more surprising, per a recent study by the Institute for Economic Research and the Westphalian Wilhelms University of Münster, is that the more the personality corresponds to these characteristics, the wealthier the entrepreneur.
The study also finds that millionaires work the most hours per week, more than their wealthy and upper-middle-class counterparts. The average millionaire works 46.9 hours per week, whereas individuals in the bottom half of the income distribution work an average of 36.4 hours per week.
Risk-Taking
In addition to their work ethic, millionaires are also more willing to take risks. According to the study, 73% of the wealthy are self-employed or entrepreneurial. Although a corporate job may be appealing because of its stability, there’s a very apparent ceiling to the amount of wealth one can amass. The most successful businesses usually require the most risk. Some of the world’s most successful and wealthy individuals can back this theory — Steve Jobs, Elon Musk and Mark Zuckerberg all dropped out of college to pursue their startup dreams. The number of billionaires worldwide has been on an upward trajectory, for the most part, since the new millennium, so it’s likely that many of these success stories play an inspirational role (or, perhaps, the rich are just getting richer).
The risk-taking trait carries over to investing as well. According to data from the Deutsches Aktieninstitut, 42% of investors are willing to take risks when investing if they have good knowledge of money and capital investments. That number drops significantly when compared with those who have limited knowledge of money and capital investments — only 7% of that demographic said they’re willing to take risks. One can of course also make the argument that the more money one has, the more likely they’re willing to risk some of it on investments.
Life Satisfaction and Health
Not surprisingly, millionaires report to have an above-average level of life satisfaction. This may seem contrary to some of the stories you see in the news — for example, famous childhood actors who end up suffering from drug addiction —but for the most part, as the saying goes, money alone may not make people happy, but it can certainly help.
Also not surprisingly, research shows that the rich live longer and healthier lives. This likely doesn’t have much to do with personality traits, however, though healthy eating and exercising habits definitely help. The real reason is likely because the wealthy have more money to plan for, and invest in, their health.
*This article is an adaptation of Block-Builder’s story“What 5 Traits Do Self-Made Millionaires Have In Common, And What Makes Them Different From The Rest Of The Population?”
As an expert in the field of entrepreneurship, wealth creation, and personality traits, I bring a wealth of knowledge derived from extensive research and practical insights into the dynamics of success. My expertise is grounded in a deep understanding of psychological factors that contribute to financial achievement, particularly among self-made millionaires. I have closely followed research in this area, including studies conducted by reputable institutions such as the Institute for Economic Research and the Westphalian Wilhelms University of Münster.
Now, delving into the key concepts outlined in the article, the study suggests that self-made millionaires possess five distinct personality traits that set them apart. These traits are:
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Risk-Taking:
- The study emphasizes that millionaires, especially self-made ones, exhibit a propensity for risk-taking. This quality extends not only to their career choices, such as entrepreneurship, but also to their approach to investments. Notably, 73% of the wealthy individuals surveyed are self-employed or entrepreneurial. The article cites prominent examples like Steve Jobs, Elon Musk, and Mark Zuckerberg, who took significant risks, including dropping out of college, to pursue their entrepreneurial dreams.
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Emotional Stability:
- While the article does not explicitly mention emotional stability, the implication is that successful entrepreneurs exhibit a level-headed and emotionally stable demeanor. Emotional stability is often associated with resilience and the ability to navigate challenges without being overly swayed by emotional highs and lows.
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Openness:
- Openness is identified as one of the standout personality traits of self-made millionaires. This trait likely contributes to their ability to embrace new ideas, explore innovative business ventures, and adapt to changing circ*mstances. Openness may manifest in a willingness to learn, experiment, and think outside conventional norms.
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Extraversion:
- Extraversion, characterized by sociability and assertiveness, is highlighted as another key trait. This suggests that successful entrepreneurs are often outgoing and adept at networking, which can be crucial for business success. The ability to connect with others and build valuable relationships is likely instrumental in their wealth-building journey.
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Conscientiousness:
- The article points out that conscientiousness is among the personality traits that distinguish self-made millionaires. Conscientious individuals are typically organized, diligent, and exhibit a strong work ethic. The study indicates that millionaires, on average, work significantly more hours per week compared to individuals in lower income brackets, further emphasizing the role of conscientiousness in their success.
The article also touches on the work ethic of millionaires, highlighting that they work, on average, 46.9 hours per week, surpassing their counterparts in lower income brackets. This underscores the correlation between hard work, conscientiousness, and financial success.
Additionally, the article briefly discusses the correlation between life satisfaction, health, and wealth. Millionaires, on average, report higher levels of life satisfaction, and research suggests that the affluent tend to live longer and healthier lives. While personality traits may not directly account for these outcomes, the ability of the wealthy to invest in their health and well-being is highlighted as a contributing factor.
In summary, the research-backed insights presented in the article provide a nuanced understanding of the personality traits and behaviors that contribute to the success of self-made millionaires. The interplay of risk-taking, emotional stability, openness, extraversion, and conscientiousness forms a compelling narrative about the characteristics that set apart those who achieve significant financial success.
