I’ll be honest. there were definitely several times throughout my life when i never dreamed of becoming a millionaire. I didn’t feel like I deserved it. I felt like that was meant for people much smarter than me.
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The first was when I was working construction and suffered an accident that almost prevented me from walking again. The second was when one of my business ventures was killed overnight by Amazon.
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After years of perseverance and changing my habits, I was able to start a successful company and made my way to millionaire statues. The thing is that I am not an exception. Those doubtful thoughts I had are very common. there are many people like each of us who have become billionaires.
here are some habits i’ve noticed that average people like you and me do on a daily basis to turn negative thoughts into positive thoughts and become millionaires.
1. they read to improve themselves.
I’ve always been an avid reader. however, I realized that reading was not just something I enjoyed. It was probably one of the biggest influences on why I was successful.
for example, as an entrepreneur, my reading habits helped me become a stronger and more effective business owner and leader. For the average millionaire, reading can help them grow and learn. In fact, according to research by Thomas Crowley, 85% of self-made millionaires read two or more books a month.
While there is a time and a place for quiet reading, millionaires read books that encourage self-improvement. this includes topics like how-tos, bios, self-help, leadership, or current events.
Related: 3 Unexpected Ways Reading Personal Development Books Changed My Life
2. create multiple streams of income.
The average millionaire doesn’t just depend on one source of income. They have multiple sources of income. this way they can handle any economic downturn as well as earn even more money.
In most cases, this means passive income. This could be in the form of loan interest, investment dividends, capital gains, royalties, or rental income. Other types of multiple sources of income could be starting a side business that doesn’t involve active work, like running a website or selling information products.
Related: 17 Passive Income Ideas To Automate Your Cash Flow
3. They live on a written monthly budget.
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Millionaires did not earn their money by luck. they have taken the time to understand what goes in and what goes out of your bank account each month. In other words, they create and stick to a monthly written budget.
Budgets can eliminate unnecessary spending and keep you in full control of your financial future. Plus, monthly budgets prevent overspending and allow millionaires to reach their financial goals.
related: 7 secrets of self-made billionaires
4. don’t leave money on the table.
You can’t accumulate wealth by “leaving money on the table.” That’s why millionaires, no matter what their salary, are aware of tax avoidance strategies. As Philip Van Doorn explained in MarketWatch, “If you work for a company or organization with a 401(k) or similar tax-deferred retirement plan, your employer will likely make matching contributions.”
then, “if the employer matches up to five percent, it means that if you contribute five percent of your pre-tax salary to your retirement account, the employer will also contribute five percent.” investment from him during the first year, and set aside the equivalent of 10 percent of his salary.”
“is not enough, a total savings of 20 percent per year is more appropriate, but it’s a start, and if you don’t contribute at least the maximum matching amount, you’re simply losing a lot of money over time, You should also work to maximize your annual 401(k) contribution.”
The IRS allows a basic contribution limit of $18,000 a year, with an additional $6,000 once you turn 50.
Related: What you need to know about retirement accounts
5. they avoid debt.
The rich avoid debt at all costs. they live a frugal lifestyle and only buy items they can really afford. they don’t book a vacation and use their credit card to pay for the entire trip. this way they are not paying those hefty interest rates. they prefer to pay in cash because it has zero percent interest.
If they use a credit card to make a purchase, they are sure they have enough money to pay that bill when their statement arrives.
Related: 5 Strategies for Entrepreneurs to Stay Out of the Debt Trap
6. set daily goals.
Whether setting financial projections, planning weekly tasks, or looking for ways to have multiple streams of income, millionaires are known for setting daily goals. this helps them stay focused and build momentum.
When setting daily goals, be sure to set priorities. this means doing the most important things first. For example, if you want to earn more money, then you should do activities that can earn you thousands, instead of chasing actions that will earn you hundreds.
See Also: 11 Books Like ‘Me Before You’ For When You Need A Good Cry And A Little Inspiration
Related: Is goal setting missing from your daily routine? (infographic)
7. they don’t act rich.
thomas stanley, author of “stop acting rich: … and start living like a real millionaire,” says “that the majority of prestige car brands, 86 percent, are driven by people who are not millionaires yes, people with very high incomes, high levels of wealth are more likely to drive premium cars, but in absolute numbers, the largest segment of consumers of expensive cars, vodkas and houses is not the millionaire population, are the wannabes.”
stanley adds: “these are people who think they are getting rich by adopting prestigious brands, but in most cases they are just behaving like everyone else.”
Researchers at Experian Automotive found that “61% of people making $250,000 or more don’t buy luxury brands at all. They buy the same Toyotas, Hondas, and Fords as the rest of us.”
the reason? they are not willing to spend the money on a premium vehicle whose value will drop as much as 70 percent in the first four years. This is also why they avoid leasing cars because it ultimately costs more money. instead, they invest in items that increase in value.
Related: 5 Frugal Habits of the World’s Richest People
8. they are entrepreneurs.
according to the “millionaire next door”:
“Twenty percent of wealthy households in the United States are headed by retirees. Of the remaining 80 percent, more than two-thirds are headed by self-employed business owners. In the United States, less than one in Every five households, or about 18 percent, are headed by a self-employed entrepreneur or professional, but these self-employed individuals are four times more likely to be millionaires than those who work for others.”
While it’s entirely possible to become a millionaire by working for someone else, millionaires prefer to earn their fortune doing something they love. after all, life is too short.
I can attest to this fact. Even though I had some great jobs before, I couldn’t bring in the money that I am as an entrepreneur. It was risky, and there were times when I stumbled, but it paid off both financially and personally.
Related: 20 Signs You’re Destined To Become A Millionaire
9. they are patient.
Although we hear those stories of the person who became a millionaire overnight, the reality is that they are few and far between. the average millionaire lives by the motto that patience is a virtue. that is why the millionaire next door does not reach that status until he is 50 years old. they earn a modest salary, invest wisely, and focus on living below their means rather than pursuing schemes to get rich.
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