Wouldn’t it be nice to be a millionaire? If you’re aiming to achieve millionaire status, first you’ll need to start acting like one. We’re not talking about spending money you don’t have (yet), we’re talking about developing the habits that will help you on your way to financial success.
Let’s take a look at how you can improve your chances of making a fortune.
1. Read daily
Reading is an excellent way to develop your knowledge and achieve personal growth without ever setting foot in a business school. Personal development reading can help you learn how to become an inspiring and efficient leader and how to maximise your productivity.
Warren Buffett is a prime example of a billionaire who credits many of his best decisions to his reading habit. He predicts that he spends 80% of his day reading saying, “I do more reading and thinking, and make less impulse decisions than most people in business. I do it because I like this kind of life.”
So, what are you waiting for? Grab a self-help book and today’s newspaper and see what you can learn.
2. Don’t depend on one source of income
If you want to make mega-money, it’s important to establish multiple sources of income. This puts you in a better position to manage economic change and to make more money. Millionaires get their income from sources including:
- Launching a side business
- Renting properties
- Earning interests from loans
- Collecting royalties from intellectual properties
- Dividends from investment
You can develop sources of income that are passive or active. It’s not straight forward, but the more streams you can create, the better off you will be.
3. Plan cash-flow and expenses
Millionaires don’t leave their financials to chance. They invest time in understanding what cash-flow they have and their monthly expenses. As a result of this, they establish a clear budget that they stick to.
If you can ensure that you are not wasting your money on unnecessary things, you will be in a better position to achieve your financial goals. Ultimately, you need to become an absolute pro in budgeting and managing your money.
4. Boost financial intelligence
If you want to have a lot of money, you need to be smart about how you manage it. Educating yourself about finances is therefore key.
Millionaires always keep up to date with the latest tax strategies with the aim of minimising the tax they have to pay (legally of course). Large companies like Amazon are well known for avoiding big tax bills, for example by incorporating their business in states/countries with no income tax. This is completely legal, and many wealthy individuals also pay huge sums to tax experts to help them pay less.
5. Steer clear of debt
Millionaires are extremely careful when it comes to managing their debt. Naturally, they want to protect their wealth. They don’t live beyond their means, buying only what they can afford. For instances where they do use credit cards or loans, they are very aware of what the interest rates are and generally prefer to pay with cash as there is no interest rate.
6. Set daily goals
Setting goals for yourself is an excellent way to stay focused, motivated and to track your progress. While you may have some larger goals in mind that you want to achieve, i.e. becoming a millionaire, it’s the smaller daily goals that will help you to get there.
Decide on your priorities and goals at the start of each day. These can be for your business, career, finances, health, or lifestyle. When you tick these off your list, you’ll be able to go to sleep at night knowing that you have achieved something that day.
7. Don’t act wealthy
When you picture a millionaire, you may think about someone with a flashy car, expensive watch or designer handbag collection. However, this may not be the case as often real millionaires aren’t swanning around showing off how rich they are. They’re more interested in investing their money in ways that will add value.
In his book, Stop Acting Rich, Thomas J. Stanley highlights how the less affluent have fallen into the elite luxury brand trap that keeps them from acquiring wealth. While the super-elite may be able to afford to throw money at luxury brands, the working rich are more sensible with their hard-earned cash.
8. Have a business
Do you fancy yourself an entrepreneur? You’ll have a lot more control over your finances if you can start or buy your own business. It’s not an easy challenge and many businesses fail in their first year but working for yourself will help you to earn more and have financial freedom.
9. Be patient
While we’d all like to get rich quick, patience is an essential quality in a millionaire. It takes time to build success both financially and in other parts of your life. Most millionaires don’t hit that milestone until they are in their 50s and they’ve worked hard to get there.
Bringing it all together
If you want to be a millionaire, ensure that you are developing the nine habits we have looked at above. If you know what you want in life and have a clear vision and an established mission, you’re more likely to succeed. Now get out there and start earning your millions!