Your personality plays an important role in financial success. These five personality traits are found in wealthy people, according to a 2018 study.However, it doesn't matter how you answer a simple question.Rafael Badziag interviewed 21 billionaires to write The Billion Dollar Secret, 20 Principles for Billionaire Wealth & Success.Others attributed the willingness to take intelligent risks. Others credited the self-determination spirit that "If it is to happen, it's up for me." Others credit their self-improvement and willingness to ignore naysayers.What did they have in common? All of them answered the same question."What do you like more: Making money or spending it?"Badziag says that there is a difference between millionaires and billionaires who are financially successful. This is because the former enjoy making money but not spending it.There are exceptions. Take Mukesh Ambani's 27-story, 400,000-square foot "home" in Mumbai, which is valued at $1.2 billion.Evidently, Ambani is not afraid to spend a little. However, Ambani is worth an estimated $87.4 trillion, so it does help to put things in perspective. (I would prefer that my home only accounted for 1.4 percent of my net worth.Warren Buffett is on the other side. He still lives in the house he purchased in 1950 for $250,000 today. It's now worth $650,000. This means that it accounts for.000007% of Buffett's net worth. (In simpler terms, it is less than 1% of 1%)Mark Zuckerberg spent $7 million on his Palo Alto home in 2011; that's.00005 percent of his net worth. Snap founder Evan Spiegel spent $12 Million on his Los Angeles home. That's.001 percent his net worth. Spiegel clearly spends more than Zuckerberg and Buffett.This is the point.Sarah Stanley Fallaw (author of Millionaire Next Door), claims that the vast majority of wealthy people she studied lived at homes much lower than what they could afford.In a wider sense, they lived below their means, which allowed them to save and invest and built wealth over time. It can take decades to build substantial wealth, even if you are a Bitcoin millionaire.This brings us back to the original question.You will never be rich if you spend money to make it -- if you find spending money more enjoyable than making it -- you are unlikely to get rich.You won't get rich if you borrow money that isn't likely to yield a return. You can borrow 100k to buy a Porsche if you have good credit and enough income. You can borrow 200k to attend a private college to get a degree.The problem is that you will eventually have to repay all of the money. Your Porsche will no longer be an "oh my gods I have a Porsche!" in four years. It's your car, one that you still have to pay for. If student loan payments remain a burdensome financial burden ten years from now, then that investment in education might not be so significant.Yes, you did get a degree, but what about the long-term costs? Education should be considered an investment, one that yields reasonable returns.Every dollar you spend in your business or personal life is a profit. Every business must eventually make a profit. The revenue must be greater than the expenses. A business that does not have enough revenue is simply an expensive hobby.This is why most successful entrepreneurs, particularly those who build long-lasting, profitable businesses, tend not to make more than their revenue.This is why wealth people or those who stay wealthy tend to live below their income.This is why billionaires love making more money than they enjoy spending.Frank Hasenfratz is the founder of Linamar Canada, Canada's second largest auto parts manufacturer. He told Badziag that "There's only one way to do this: Spend less than what you make." You can become rich by spending less and accumulating more.It is obvious that you should spend less than what you earn, and less than what you make. It can be very difficult.You won't enjoy making money unless you can find a way that you love spending money.Because your focus will not be on what you don’t have.
