Do you hope to be a millionaire someday? For the person who’s willing to plan, sacrifice, and work hard, being a self-made millionaire is likely not out of reach. It takes perseverance and a desire to accomplish your goals, among other things. We studied some patterns of wealthy people, and found that these 7 habits of millionaires tend to be some of the most common.
1. They’re readers
One of the top habits of millionaires is that they are always learning. Thomas C. Corley, who spent five years studying millionaires and wrote the book, “Change Your Habits, Change Your Life”, found that 88% of rich people devote at least 30 minutes per day to self-education or self-improvement reading.
This means that not only do millionaires read, but they read to gain knowledge, not simply to be entertained. People who are rich tend to read non-fiction, such as biographies, history books, and personal development books.
2. They budget
Millionaire or not, budgeting is key to your financial success. A budget is a plan. It’s YOU deciding where your money is going to go, rather than looking back and wondering where it all went. Whether you’re making a lot of money or a little, a budget will help keep you on track.
The average millionaire spends time budgeting every month. Millionaires know what’s coming in and how it’s being spent.
3. They avoid debt
Millionaires don’t waste their money paying interest on consumer debt. Instead, most millionaires spend money only on the things they can afford to pay for with cash. Instead of owing money to the bank, millionaires get to keep everything they earn to use however they like—whether that means spending it, saving it, or giving it away.
4. They understand delayed gratification
This goes along with our last point. In order to avoid debt, it’s imperative to understand delayed gratification. Millionaires are willing to sacrifice their immediate wants for their long-term success. They’re not constantly comparing themselves to others. Instead, they’re focused on their own goals. This may mean living in a modest neighborhood, having an older vehicle, or not always wearing the newest fashions. Millionaires know that being wise with money now will have long-term effects in regards to their most important goals, such as saving for retirement.
5. They have multiple sources of income
Millionaires often have more than one income stream working for them at any given time. They don’t rely on only one source. These income streams often include real-estate rentals, part-ownership in a side business, and stock market investments. Each additional stream of income adds wealth that can be invested into another.
6. They have mentors
Millionaires take advantages of those who have learned important life lessons before them. They know that there is much to be gained through the knowledge and experience of those who are farther ahead than they are. Millionaires surround themselves with success-minded people and take their advice seriously.
7. They have a clear idea of “enough”
Millionaires have learned that they don’t have to constantly be acquiring the next thing. A lot of people make the mistake of scaling up their lifestyle as their income increases, with no endpoint. Millionaires create personal wealth by staying humble with their expenses as they continue to increase their income. Think of it this way: wealth is what you didn’t spend, but could have.
Do you have a plan?
When studying these 7 habits of millionaires, one of the common threads we see is that millionaires have a plan. They budget, they learn, and they know their goals. Self-made millionaires are usually not walking through life just winging it and hoping for the best.
Do you have a plan for your financial future? Milestone Wealth Management is here to help you ensure that you’re prepared to reach your financial milestones. You can’t re-live your life, but you can plan well the first time. Schedule a meeting with us today.
This material is not intended to replace the advice of a qualified tax advisor, attorney, or accountant. Consultation with the appropriate professional should be done before any financial commitments regarding the issues related to the situations above are made.