Follow the example of millionaires and see if their habits can help you achieve wealth
The best way to become a self-made millionaire is to learn from those who have already reached that milestone.
As you’ll see in the following list, the habits adopted by millionaires who built their fortunes are easily incorporable into your daily life.
After all, achieving wealth doesn’t mean spending as if you’re already rich but rather saving money and investing it with the mindset of a wealthy person.
Becoming a self-made millionaire requires hard work, but with the help of this list, you’ll definitely be on the right track to seven digits.
Self-Made Millionaires Start with Small Steps
They are not afraid to live frugally.
They save aggressively.
They keep learning.
They know that building wealth takes time.
They network intelligently.
They practice “dream setting.”
They wake up early.
They prioritize their health.
Happy Millionaires Give Generously
Millionaires see opportunities everywhere.
They have multiple income streams.
They don’t give up.
According to the 2010 bestseller, “The Millionaire Next Door,” by Thomas J. Stanley and William Danko: “Twenty percent of wealthy families in the United States are headed by retirees.
Of the remaining 80%, more than two-thirds are led by self-employed entrepreneurs.
Less than 1 in 5 families in the United States, about 18%, is headed by an employer or hired professional.
However, those who work for themselves are four times more likely to become millionaires than those who work for others.”
Pauline Paquin, from the blog Investment Zen, adds that self-made millionaires are often humble and realistic about the future.
They understand that going from zero to millions takes a lot of time and effort.
These entrepreneurs invest a lot of sweat into their businesses and strive to keep debts under control.
Some self-made millionaires even delay paying themselves a salary until their businesses are well established.
So, When Facing a Global Recession, We Should Follow the Example of Self-Made Millionaires.
Starting with small steps, adopting a mindset of saving and investing, and maintaining a humble and realistic approach to the future are key measures to chart the path toward wealth and prosperity.
They Are Not Afraid to Live Frugally
While there is a market for luxury goods, driven by millionaires and billionaires who buy yachts and Bentleys, in “The Next Millionaire Next Door,” a 2018 update to the original book, co-author Sarah Stanley Fallaw highlights the great freedom that comes from living below one’s means.
For example, billionaire Warren Buffett still resides in the modest house in Omaha that he bought in 1958 for $31,500. At the request of his late first wife, Buffett acquired a beach house in California in 1971 for $150,000, which he sold in 2018 for $7.5 million.
“How would my life improve by having 10 houses around the world?” Buffett asked in an interview with Evan Davis of the BBC. “I’m warm in the winter, I’m cool in the summer, it’s convenient for me,” he said. “I can’t imagine a better house.” Additionally, Buffett buys hail-damaged cars repaired to save money.
They Save Aggressively
Paquin, from Investment Zen, states that millionaires recognize that every dollar saved is a dollar they don’t have to work for.
Even better, that dollar starts earning interest and turns into more dollars.
It’s important to secure company matching and maximize contributions to retirement accounts before anything else to get maximum returns.
They Keep Learning
Thomas Corley interviewed 177 millionaires for his book “Change Your Habits, Change Your Life.”
Nearly 9 out of 10 millionaires interviewed stated that they read daily to increase their knowledge about their work and industry.
Over three-quarters, 85%, reported reading at least two books a month, and 63% said they listen to audiobooks or podcasts.
They Know That Building Wealth Takes Time
As highlighted by Corley in a blog post, millionaires fall into four different categories when it comes to their approach to money: Saver-Investors, Company Climbers, Virtuosos, and Entrepreneurs.
“More than three-quarters, 80%, of the participants in my study were 50 years or older and accumulated their wealth over time,” he says. “For Saver-Investors, it took an average of 32 years to become millionaires.
For Company Climbers, it took 22 years.
And for Virtuosos, 21 years. Entrepreneurs reached this milestone in 12 years.”
These data reveal that building wealth is a gradual and consistent process.
Most millionaires do not achieve this status overnight but over decades of dedication and perseverance.
They understand that patience and discipline are essential to achieving their long-term financial goals.
Therefore, when seeking wealth, it is crucial to have a long-term vision and be willing to invest time and effort over the years.
The path to becoming a millionaire is not a quick shortcut but a constant journey of learning, saving, and strategic investing.
By adopting these mindsets and following the examples of self-made millionaires, you’ll be on the right track to reaching your own seven digits.
They Network Smartly
Paquin highlights that millionaires recognize the importance of their connections and the positive influence of successful people in their lives.
They value their contacts and maintain regular communication to strengthen their valuable networks.
They Practice “Dream Setting”
More than 80% of the millionaires surveyed by Corley set aside at least an hour a day for what he calls “dream setting.” In a post for CNBC, Corley identifies four parts of the dream-setting process:
Define your ideal future life through a roadmap of 1,000 words or more. In this roadmap, you project yourself into the future, five years or more, and describe in detail every aspect of your ideal life. This includes the house you own, the neighborhood you live in, the income you earn, the wealth accumulated, the car you drive, your closest and amazing friends, travel destinations around the world, among others.
Mark each dream in your roadmap.
Build goals around each dream.
Pursue each goal until you achieve it.
They Wake Up Early
If you want to achieve your dreams, you need to set the alarm. There’s a saying that goes, “what is done first, gets done.”
Almost 50% of the millionaires surveyed by Corley stated that they wake up at least three hours before the workday begins.
Waking up early, for example, allows you to tackle the three main tasks you want to accomplish in your day, enabling you to take back control of your life, as Corley writes.
They Prioritize Their Health
A healthy mind resides in a healthy body.
More than three-quarters of the millionaires surveyed by Corley said they exercise at least 30 minutes a day, four days a week.
Additionally, 93% reported sleeping at least seven hours a night.
Making the most of workout time by listening to podcasts or audiobooks is a strategy adopted by many.
By following these practices, millionaires demonstrate care for their physical and mental well-being, recognizing that these aspects are crucial for maintaining high performance in their lives and careers.
Happy Millionaires Give Generously
Danko, co-author of “The Millionaire Next Door,” followed up his book with “Richer Than a Millionaire: A Pathway to True Prosperity.”
After all, money alone cannot buy happiness. According to Danko, satisfied millionaires have strong family and religious connections and practice charity.
Researchers at Harvard Business School, Grant E. Donnelly and Michael Norton, analyzed the relationship between wealth and happiness and agreed that giving money makes millionaires—and their heirs—happier.
“Andrew Carnegie found a solution: he donated most of his fortune to charities, foundations, and universities in the last years of his life, hiding it from his heirs in an apparent effort to encourage them to lead useful and dignified lives.
His solution is also profoundly wise: as research shows that giving to others brings more happiness than spending on oneself, Carnegie was maximizing his own happiness by employing his wealth in this way.”
Millionaires See Opportunities Everywhere
According to Paquin, millionaires are curious and see opportunities where others do not.
Every problem-solving situation is a potential money-making idea.
As mentioned earlier, many of these ideas will not be pursued, many will fail, but some may succeed.
They Have Multiple Income Streams
“Self-made millionaires do not rely on a single source of income,” says Corley, reporting that 65% of them “had at least three streams of income established before reaching their first million dollars.”
Having multiple income streams helps millionaires navigate life safely.
While they invest most of their net worth, they also keep cash reserves for emergencies.
They know that financial emergencies can lead to a business’s failure in its early stages, and they prepare accordingly.
They Don’t Give Up
Millionaires are not afraid of failure.
Like anyone else, they may have tried and failed, but unlike many, they simply shake off the dust, get up, analyze the failure to avoid making the same mistakes, and try again.
Eventually, they succeed.
As Corley writes: “Almost two-thirds, 63%, of the millionaires in my study shared with me that they took calculated risks in building their wealth. And 27% said they failed at least once in business.”
Note the Habit That Most Caught Your Attention and Put It into Practice
By adopting these practices and following the example of self-made millionaires, you will be on the right path to achieving your own financial success.
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