August 31 2020
"Millionaires don't have life-changing secrets that no one else knows about. It's all about understanding and committing to the process of success!" - Ben Crow
As technology evolves and information becomes more accessible, it has also become more challenging to define success. A lot of people are trapped in the rat race while trying to discover the actual formula for success.
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You could become overwhelmed with what tools, techniques or philosophies to imbibe while trying to get tips over the internet. At every click and turn, there are ‘how-tos and quick-fix’ on how to become successful overnight. You will find several courses, articles, videos and books on how to achieve financial success.
But what if I tell you it doesn’t have to be complicated as people made it out to be? What if you could achieve success by merely following these 7 millionaire success habits?
1. Read for Personal Development
A daily habit I have discovered millionaires share in common is reading. For instance, if you are an entrepreneur, you need to read to become an efficient leader and a productive business owner. Reading helps you to grow and learn without going to a business school.
A research conducted by Thomas Crowley indicates about 85% of self-made millionaires read at least two or more books each month. Warren Buffett is one of these examples. He spends 80% of his day reading. In the early days of his investment career, he would read 600 to 1000 pages in a single day.
While millionaires sometimes read for pleasure, they also learn to improve themselves.
2. Establish Multiple Sources of Income
Another success habit I noticed about successful people is that they don’t depend on a single income source. Every millionaire possesses multiple sources of income. This helps them to manage economic challenges and also make more money.
They are passive income addicts. They earn interests from loans, rental income from real estate, royalties from intellectual properties, dividends from investments. They also launch a side business or run a website or sell information products.
How income is made either passively or actively is what separates the successful from the wannabes. They are always learning ways to build multiple streams of income.
3. Live on a Stipulated Monthly Budget
An average millionaire does not believe in luck and jackpot. They take the time to understand cash flow-income and expenses. Based on this, they establish a monthly budget and religiously stick to it.
The essence of the budget is to minimize unnecessary expenses. This will help you gain complete control of your financial life. Budgeting helps you to avoid overspending to achieve your financial goals.
4. Set Daily Goals
It does not matter if they are setting up a business, a career, or financial projections; they have the success habit of setting short term goals. They plan daily and weekly goals to generate momentum in achieving their long-term goals.
Ensure you prioritize when setting daily goals. This will help you to achieve the most important to-dos on your list.
Setting priorities will help you to focus on highly rewarding activities. If you desire financial freedom, it is wise to pursue activities that earn you thousands of dollars rather than hundreds of dollars.
5. Don’t Act Rich
The goal is not to act rich but to be productive. Interestingly, Thomas Stanley buttressed in his book that for the most prestige brands of cars, about 86% percent are toys of the non-millionaires. While most believe that people with huge fortunes tend to drive exotic cars, in reality the largest consumers of pricey cars are aspiring millionaires.
According to findings by Experian Automotive Researchers, 61% of individuals who earn $250,000 or more rarely buy luxury brands. Instead, they buy Hondas, Toyotas, and Fords like the rest of the world. The reason is they are not ready to spend money on premium cars that tend to drop in value in a couple of years as it would cost money. Millionaires invest in assets that appreciate.[4]
6. Own or Buy Businesses
In Robert Kiyosaki’s cashflow quadrant, he divided how you earn income into four quadrants. The E and the S quadrants take the left position while the B and the I are on the right side. According to Robert, it is possible to be on all quadrants, but the millionaires are not.
- E stands for employee – they work for others
- S stands for self-employed – they work for themselves
- B stands for a Business owner- employees work for them (500 or more employees)
- I stand for Investors – Money work for them like Warren Buffet.
Your goal is to move from the left quadrant to the right quadrants where you own big businesses or make money work for you.
It is possible to become financially successful by pursuing what you love. For instance, if you love writing, aspire to be the best seller. Wealth and passion work together.
7. Avoid Get-Rich-Quick Scheme
A millionaire holds patience as an essential virtue. It takes patience to become successful, not only in finance but in every aspect of life. While it is possible to become financially successful at an early age, most millionaires hit it at age 50. They live a moderate life, invest in their future and retire rich.
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Source: https://www.lifehack.org/862613/millionaire-success-habits
Ho, L. (2020, June 11). 9 millionaire success habits that will inspire your life. Retrieved from https://www.lifehack.org/862613/millionaire-success-habits