Practices of Self-Made Millionaires
By Candace Wofford, South Texas Teacher and Contributor at NEST Financial
I teach high schoolers in a small city in South Texas. I recently got the writing bug, which is why I am here now giving some insights and also trying to earn money with this side hustle—because, I don’t know if you’ve heard, teachers at public schools in Texas make very little money… as in living paycheck to paycheck.
So it came as a surprise to me to find out in the Ramsey 2022 National Study of Millionaires that teachers were listed in the five careers that produced the most self-made millionaires (?!?!)—along with engineers, accountants, management, and attorneys. What is going on?
There are nearly 22 million millionaires in the U.S., accounting for 8.8% of the country's adult population.
Most people tend to think that those millionaires stem from family and generational wealth, but Ramsey's study determined that 79% didn't receive any inheritance from parents or other family members—they were self-made. Further research showed me that self-made millionaires have the discipline to turn their dreams into reality. Common practices include consistent saving and investing, goal-oriented planning, continuous learning, strategic networking, and risk management.
Consistent Saving and Investing
High net worth individuals practice good money habits, consistently saving and investing a portion of their income. This happens regardless of market conditions. A general rule of thumb is to set aside 20% for savings, retirement, and investments—especially if you're in your 30s.
Goal-Oriented Planning
They set clear financial goals and build a plan to achieve them. These plans are reviewed and adjusted regularly to stay on track.
Continuous Learning
High net worth individuals value continued education, especially when it expands their financial knowledge or sets them up for their next opportunity. The days of working one job from college to retirement are gone. Today, successful individuals are willing to move for growth.
Strategic Networking
They prioritize building relationships with other successful people. Mentors and peer learning circles play a big role in staying sharp and motivated.
Risk Management
They understand that risk comes with potential reward, so they diversify investments, consult financial advisors, and protect assets with insurance and other tools.
Following these strategies is a good start. But here’s the big takeaway: most self-made millionaires (94%) live below their means. Over 75% report never carrying over-limit balances on credit cards. That’s a clear rejection of the "keeping up with the Joneses" mentality.
Many drive cars long-term, eat out less than $200/month, avoid bad debt (credit cards, car loans, personal loans), and—even more surprising—about one-third never made six figures in any year of their life. They simply lived frugally and built steadily. So maybe, just maybe, this Texas high school teacher could become a millionaire too.
One of the perks of this side hustle is getting paid to research ways to get my family’s finances on track. Even better, I get to work with the mad scientists behind the scenes—Sean, Gloria, and Dan—who bring real money knowledge. I’m starting my self-made millionaire journey now, and I’ll keep you posted.
In the meantime, if you have questions—or you’ve already hit that self-made millionaire status and need help managing or planning—drop us a line at NEST. We’re here to help.
If you’re finding it challenging to stay on top of all the changes, connect with our financial planning professionals by scheduling a no-obligation call. At NEST Financial, we can help make crypto not quite so cryptic.
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If you like reading more entrepreneurial stories in Austin, check out Dan’s other company foundingAustin. If you're into podcasts, click here.
DISCLAIMER: We are legally obligated to remind you that the information and opinions shared in this article are for educational purposes only. These are not financial planning or investment advice. For guidance about your unique goals, drop us a line at info@nestfinancial.net.
