The word Millionaire has the ability to conjure up all types of images in our minds. And most likely, those images don’t look anything like we see in our mirrors, in our homes, or in our businesses. Why is that? Why is it that when you think of a Millionaire, you seem to think of someone other than yourself? I find that really funny because Millionaires are people just like us. The difference, their mindset. When asked about their ’secrets to success’, they usually don’t cite anything magical or out of the norm. Usually, they speak of hard work, belief in themselves, goal setting, wise investments and yes……frugality.
In my reading and investigation of this rare and special specimen we call Millionaires, these are the top ten things I have found to be consistent:
1. Create a financial plan EARLY. Most people get into trouble by creating debt early on. Remember all those credit card offers right after graduation? All those student loans that seemed to be so easy to approved for? Remember that first car you financed because you just had to have it? All those things are just pitfalls into early debt. I’m sure you have heard this phrase hundreds of times before, so you won’t mind if I repeat it once more. “Learn to live within your means and how to delay gratification”. These are habits that you will need to practice into habit so that you can create your millions.
2. Believe in yourself. Unfortunately, most of us will kill our million dollar dream before it even has the chance to be born. I can almost guarantee that you have had at least one idea this year that if you just believed it was possible, would have assisted you on the road to millionaire status. Stop making excuses of why you can’t. Start creating what you can with what you have right now. If you don’t believe in you, who will?
3. Be more specific about what it is you say you want. The statement, “I want to be a Millionaire” is too vague. You must begin to imagine what your life as a Millionaire looks like. Example…I want to have at least $1,000,000 invested so that I can live off the interest. I want to quit my job so that I can volunteer in my community, travel and enjoy spending time with my family. When you clearly set your intentions, the picture becomes so much clearer.
4. Insure against life’s stumbling blocks. Life’s stumbling blocks can look like bankruptcy, divorce, disability, or even a death in the family. Protecting against those stumbling blocks through insurance helps to protect your wealth. I’ve heard so many people say, “I just can’t afford it”. The truth is, you can’t afford NOT to have it.
5. Work hard and smart. When I say work hard, I don’t mean to physically break your back. What I mean is to work ’steady’. Be consistent in your work habits. Don’t become to relaxed. If you haven’t read my post about my Recession Confession, I suggest you give that a read after reading this post. Donald Trump made this statement….”If your work pays off, which it most likely will, people might say you’re just lucky. Maybe so, because you’re lucky enough to have the brains to work hard”. Millionaires create financial freedom because they work hard in the beginning to build their wealth. Once the wealth is built, they are free to do what they want when they want.
6. Budget. I recommend that you track how much you spend each month. Do this religiously. Be sure to include EVERY spending aspect of your life. This means track how much you spend on eating out, on going to the movies, on hanging out with your friends at the club, and even how much you spend on hair, clothes and shoes to go to the club. You will be surprised at how much is spent on ‘life’s pleasures’. When you SEE your spending habits in black and white, you can begin to budget.
7. Do what you love. Having a college degree is great; however, I have found that most people do not excel at something that they don’t enjoy. I suggest you go into a field that you find yourself enjoying in your ’spare’ time. If you find your self browsing browsing fashion magazines, then work in the fashion industry. Even if what you like doesn’t seem lucrative, just do it. If you do what you love, the money will come.
8. Create multiple streams of income. The more sources of income you can create, the more likely you will become a millionaire. The key to creating multiple streams of income is to focus on making them passive income. By passive I mean they require little maintenance from you. Stop trying to do EVERYTHING yourself. Develop a team of people who can get the job done while you are out creating the next stream.
9. Invest in your financial education. Most million dollar homes have libraries. That’s not a coincidence. That is on purpose. Invest in your knowledge. If part of your money is not going toward financial education, then you will never reach millionaire status. So pick up a book. No time to read, invest in audio books and programs. Turn the TV and radio off. Educated yourself.
10. Give. First and foremost, give thanks for all that you have been blessed with. Then create a habit of generosity. It feels great when you are able to give from your heart. When you give it (whatever ‘it’ is) away, you make room to receive. If you give, then you possess wealth. When you don’t give, wealth will allude you.
To wealth,
J-licious