We all know that life is not all about money but it would be pretty nice to be a millionaire. Making healthy financial habits a part of your life is a big step towards prosperity.
Here in this article you will find some of the strategies and habits that people have used before us to build wealth and what’s great about this is that there are about 50 million millionaires in the world.
This means that this path has been laid out before us and we can kind of in a sense mimic or copy some of the ideas and strategies in the ways that people live their lives who are financially successful- in an attempt to hopefully find more success financially for ourselves.
So today what we are gonna do is dig into some of these different habits and it turns out that only about 12% of millionaires have inherited the majority of their wealth. So, this is a really interesting statistic but what I found from this is that everyone can build wealth over their lifetimes.
Here we are not going to discuss some of the cliché habits such as reading, exercising, eating healthy, etc. We know those are habits that are commonly practiced by financially successful people.
Here you will get to know about some of the habits and tips straight from the mouths of millionaires themselves that will help you to become a millionaire.
Tips and habits that would help you to become a millionaire
1. Taking notes
One of the first habits that self-made millionaires adopted is just a simple habit of taking notes. People have different reasons for writing things down. It’s very important for people to essentially dump their thoughts and have them on paper somewhere written down.
Now there’s a variety of reasons for this. One of them being that it helps with clarity when thinking about long-term goals especially if you are trying to build wealth or you have specific goals for yourself in the coming years.
By writing them down and having that there for yourself to look at, there can be times where maybe you have some struggles or problems that you need to overcome. You can go back and look at what you wrote, and what were you thinking last week, last month, last year to better understand your direction.
This habit is a great budgeting technique. The idea is to divide your income into three categories.
The first category is the necessities. One should allocate 50 percent of their income for monthly expenses like rent, utilities, transportation, groceries, and other similar things you can’t live without.
The second category is personal spending. It means you can use 30 percent of your salary for entertainment, hobbies, shopping and anything that makes you happy (release the stress!).
The last category is savings. Put 20 percent of your money straight into your savings account, and investments. Make it compulsory to yourself for this part. Learn to save money, learn to invest. There are so many personal finance management apps that’ll help you in managing your wealth, read our post on 9 money saving apps You need to have.
Start thinking on investment. Please read on our post of the best strategies of investing here. You can also take a look on so many robo advisor investment apps that certainly will help you such as Wealthsimple, M1 Finance and Wahed Invest (Get $10 bonus by using my referral code: abdabd55)
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3. Focus on producing things
One of the important habits which you must adopt if you want to be a millionaire is to focus on producing instead of consuming when you find yourself with some free time.
So, a great example of this is most people when they have some free time after work or on weekends, consume content maybe watching Netflix or finding some type of entertainment.
There is nothing wrong with this but a lot of millionaires and billionaires with their free time, instead of consuming content they will focus on building skills and this could be something as simple as playing guitar.
But the difference is if you focus on building skills in your free time, it’s going to make you in the eyes of the world more valuable as a person because you have more skills. There are plenty on opportunities out there for those who are looking, online services marketplace such as Fiverr, Upwork and Freelancer should be a good platform for you to start producing things.
4. Avoid Poverty Thinking
Never say things like it’s too expensive or I’ll never be able to afford that. See that high price tag as a limit you can potentially overcome not a permanent barrier. If all the goods and services in the world were cheap people wouldn’t have to work hard to get them.
See, money is something you can earn and built up. It’s not something that keeps you down and crushes all your dreams.
5. Stay away from Credit cards
If you have a credit card, you’re treading on dangerous grounds. Credit cards promote people to put together impulse purchases.
By using a credit card, you are spending the wealth you don’t truly have plus that added interest on your monthly payments means you are spending more on the same items than if you simply use cash or a debit card.
6. Always have a Plan B
Today you might have the job of your dreams with a steady income but nobody knows what tomorrow will bring. In addition to saving up a part of your salary in your emergency fund, get yourself ready for crises.
Think of other skills you have and work on developing them in your free time. Inflate your professional set-up, talk to people and make contacts. You never know where a new job might come from when you need it.
7. How to save money?
Start saving! Anybody with a warehouse club membership like Sam’s Club or Costco can demonstrate that buying in volume saves a large amount of money. But this rule only applies to goods.
Do not be embarrassed to use coupons. Wait for that cool gadget to go on sale or compare processes at different retailers. After all, a penny saved is a penny earned. There are so many money-saving apps that can help you nowadays. Read more on that here.
8. Try to buy straight from manufacturers
Before you buy something in a store, stop and ask yourself “Can I cut out the middleman here”. You would be surprised by how often you can actually order something straight from the manufacturer and the price is almost always lower.
You might face a minimum order quantity but, in this case, you can recruit friends or family by enticing them with low prices.