Start Spending And Thinking Like A Millionaire: You Can’t Be A Millionaire Without Millionaire Habits
By: Ian Golightly
It’s a possibility that you are shrugging your shoulders and shaking your head when you saw the title. However, I encourage you that you read on to learn real applicable habits that real millionaires implement in their daily lives. It is apparent that wealthy individuals are rich because they know how to handle their money, but to manage their money with responsibility takes habits.
I’m confident that you have probably heard stories about extremely wealthy people losing all their money to where they were forced to go into bankruptcy.
But the majority of millionaires live in middle-class homes and know how to manage every penny that comes into their pockets.
Here are just a few examples of how the wealthy are being conscious of their money:
- Mark Zuckerberg drives a $30k car
- Warren Buffet still lives in the same house that he paid $31,500 in 1958
- Bill Gates wears a watch that costs $10
- Charlie Ergen still brown bags his own lunch
- Credit: Money.com
If you want to be one step closer to be rich, please continue on to learn the habits of real millionaires.
- Most millionaires have more that 1 income source:
One of the most significant habits that millionaires have is being able to obtain multiple streams of income. Most millionaires will tell you that it is not a smart idea to put all your eggs in one basket. Having various streams of revenue may come from a business, a regular day job, real estate, and so forth. These income sources allow individuals to accumulate incremental income that adds up over time.
Millionaires realize by not putting all
their eggs in one basket is a smart idea because their primary source of income
may not last forever. Millionaires have the skillset of risk management, and it
is a skill set that you will
2. They are okay with
the same outfit:
Can you believe Mark Zuckerberg, Steve Jobs later down his career, Simon Cowell, Michael Kors, and more where the same outfit every day?
When President Barak Obama was still president, he decided to simplify his wardrobe. Barak says, “I’m trying to pare down decisions. I don’t want to make decisions about what I’m eating or wearing—because I have too many other decisions to make.”
According to statistics in 2018, the average cost per family household for clothing spends roughly $1,803. To break that down, that is approximately $150 per month.
When you have some many outfits and different choices to make, that can consume a lot of time. Millionaires value every second of their time and money. You should consider these principles if you want to make one step closer to increase your wealth.
3. Long Term Goals are a must:
Millionaires and also high performers are known to set goals, especially long term goals. Goal setting is a necessary skill set to have because without goals you have no idea how to go from point A to point B. This may be pretty hard to believe, but goal setting is a strategy to keep you accountable to be a better person.
4. Budget Is A Top Priority:
I personally hate the B word. Millionaires believe it or not have a budget. Dave Ramsey preaches this all the time to have a budget. If you track everything what is coming in and what is coming out, you may find a contributing factor that is draining your overall income (i.e., cable TV, unused gym memberships, and so on). Also tracking things over a few months will allow you to see your spending patterns that may need to modify for a more frugal lifestyle.
5. Lifelong learns about finances
The world of finance is a large entity. No one can understand everything in finance in one day or even 10 years. You can have a strong understanding of finance, but the world of finances goes through a continual change. When millionaires are unsure about something, they seek help from an expert, or they seek out the information they need to know before making a sound decision.
You can find most millionaires reading and applying what
they learned by taking action. Millionaires are lifelong learners.
6. They rely on experts
Even though millionaires are lifelong learners, they also know when to throw in the towel to seek professional help. Granted it may be appealing to do everything on your own to ‘save’ money, but when things go wrong, it may cost you more to fix versus getting professional help. Also hiring an expert will give you more time for you to put your time in better usage.
7. Millionaires ignore the inflated lifestyle of being a millionaire
Most millionaires live below their means. They might have “nice” things, but their lifestyle is still below their living means.
Statistically, most millionaires buy used items such as cars and clothes. Millionaires realize that most cars are a depreciated asset. Why should you pay for something at retail value knowing that the value is going to drop after a handful of years with wear and tear on the vehicle?
Here are a few facts that you should keep in mind:
- More than half of the US population lives paycheck to paycheck
- More than 20% of the US population have no emergency fund
- Average household has roughly $10,000 in credit card debt
The problem with most people is that they want to keep up with other people without evaluating their finances. If materialistic things are the contributing factor of keeping your friendship, then I personally suggest you re-evaluate what real friends are. You cannot be great with money when you are trying to keep up the lifestyle that is not sustainable with your finances.
8. Paying themselves first is essential
Millionaires value their time and energy. They are not afraid to make sure they give themselves money first. When I say they pay themselves first, they make sure that they save money before they go out and spend it.
The way that you can pay yourself is to ensure that you put a portion of your money into a savings pool as soon as you receive your paycheck. Placing your money into a savings pool psychologically forces you to spend your money more wisely versus a checking account. This strategy may help you cut back on unnecessary expenditures.
9. Make the money work for you
Millionaires continue to be millionaires because they allow their money to work for them. Do you remember the term, it takes money to make money? Well, this is the perfect example scenario.
Investing allows your money to work for you. However, you may need to expect help or even skillsets because investing always has some degree of risk. But money sitting and doing nothing is something I personally wouldn’t do.
Why may you ask?
Well, 500$ today’s will not be worth 500$ in the future if your money is doing nothing and just sitting there. However, if you invest, you have the opportunity to turn that $500 into something far more significant.
At the beginning of 2019, I decided to learn everything that I could with trading stocks versus the traditional 401(k) route. It is a skillset that I wanted to learn in 2019 to help bring in more income in my savings.