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Getting rich may be easier if you maintain 4 types of relationships, according to an author who studied over 10,000 millionaires

Jan 14, 2019, 00:48 IST

Michael Dodge/Getty Images

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  • Building wealth isn't a sole effort.
  • According to Chris Hogan, an author who studied more than 10,000 millionaires, most millionaires had four key relationships that helped them reach a seven-figure net worth.
  • If you want to be a millionaire, you should have a coach, mentor, cheerleader, and friend in your life.

Becoming a millionaire requires teamwork.

According to Chris Hogan, author of "Everyday Millionaires: How Ordinary People Built Extraordinary Wealth - and How You Can Too," you can't build wealth without a bit of help along the way.

In partnership with the Dave Ramsey research team, Hogan studied 10,000 American millionaires (defined as those with a net worth of at least $1 million) for seven months - and he found they achieved their seven-figure status with four key relationships.

Here's a closer look at each.

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1. A coach

"This is someone who stands on the sidelines and challenges you to keep making progress," Hogan wrote. "When you fall, this is the voice you hear yelling at you to get up."

Hogan himself credits the athletic, business, and financial coaches he's had throughout his life with shaping him into the person he's become.

Daniela Corrente, CEO and founder of personal finance app Reel, can testify to the importance of having a coach. She told Business Insider the smartest move she's made in her career so far is hiring a business coach, who she meets with once a week to discuss hiring strategy, fundraising, and establishing company values.

"I know plenty of successful people that use a coach, they just don't necessarily admit it or say it out loud," she said.

Read more: Most people believe 6 myths about millionaires, and it can keep them from building their own wealth

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2. A mentor

In Hogan's study, 86% of millionaires reported actively receiving mentor advice.

"[A mentor] is someone who has done what you want to do," he wrote. "They're on the same journey but they're a few miles ahead of you." Hogan suggests not overthinking your mentor strategy - stay on the lookout for someone you trust and take them out to coffee every few months, he said.

"Save up some questions over time so you can have a deep, meaningful conversation when you meet," he wrote. "Ask them their stories, learn what makes them tick. Ask them to tell you their biggest failures and what they learned from them. Keep things informal and learn as much as you can."

You should also consider having a peer mentor - a coworker you regularly exchange feedback with. Suzanne Bates, CEO of Bates Communications, says that all successful leaders have one and it helps them rise faster in their career, Business Insider's Shana Lebowitz previously reported.

3. A cheerleader

"This is someone who believes in you and is there to encourage you no matter what," Hogan wrote.

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The best cheerleader for an aspiring millionaire is one who's already crossed the seven-figure mark, he said: "They know the challenges you're up against, and they will be a constant reminder that you can make it."

Having a strong support system can guide you through trials and tribulations on your journey, and help you manage both challenges and celebrations. Entrepreneur Randi Zuckerberg previously told Business Insider that you need to "have a good partner or support system in any situation to thrive."

Read more: An author who surveyed over 10,000 millionaires found the qualities that make them successful hinge on a distinct behavior

4. A friend

You can't spend every waking moment dreaming about being a millionaire, Hogan said.

"Friends remind us that life is about more than building wealth," he wrote. "And, especially true for old friends, they remind us who we are and where we've come from. Don't underestimate the quality-of-life value in that. You never want to build wealth at the cost of your relationships."

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But friends offer more advantages than just keeping you grounded.

Having stable personal relationships - and good personal habits - means that you're being a good steward of your resources, William D. Danko, coauthor of the best-seller "The Millionaire Next Door," said in a Q&A with the Washington Post.

It's one of his key pieces of advice for building wealth. "These behaviors will lead to a longer life, and more compounding opportunities," he said.

Research backs him up; studies show that fostering friendship is key to aging well and boosting happiness, Business Insider's Erin Brodwin reported. Essentially, having a healthy personal life can result in a longer life - and more time for wealth accumulation.

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