ADVERTISEMENT

General

9 Everyday Habits You Should Be Doing if You Want to Be a Millionaire

ADVERTISEMENT

9 daily habits of the average millionaire

Earning a salary, investing wisely and living below your means is enough to become a millionaire sooner or later.

I will be honest. Throughout my life there have certainly been several times when I never dreamed of becoming a millionaire. I didn’t feel that I deserved it. I felt like it was meant for people much smarter than me.

The first was when I was working in construction and had an accident that almost prevented me from walking again. The second was when one of my entrepreneurial projects was killed overnight by Amazon.

After years of perseverance and changing my habits, I managed to create a successful business and reach the millionaire statuette. The fact is that I am no exception. The thoughts of doubt I had are very common. There are many people like each of us who have become millionaires.

Here are some habits I have noticed that ordinary people like you and me do daily to change negative thoughts into positive thoughts and become millionaires.

1. They read daily to improve themselves.

I have 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 my becoming a successful person.

For example, as an entrepreneur, my reading habits helped me become a stronger and more effective businessman and leader. For the average millionaire, reading can help them grow and learn. In fact, according to research by Thomas Crowley, 85 percent of self-made millionaires read two or more books a month.

Although there is a time and place for leisure reading, millionaires read books that promote self-improvement. These are topics such as manuals, biographies, self-help, leadership or current events.

2. They create multiple streams of income.

The average millionaire does not rely on a single source of income. They have multiple income streams. In this way, they can weather any economic downturn and earn even more.

In most cases, it is a matter of having passive income. This can be interest on loans, dividends from investments, capital gains, royalties or rental income. Another type of multiple source of income may be starting a side business that does not involve active work, such as running a website or selling information products.

3. They avoid debt.

The rich avoid debt at all costs. They lead a frugal lifestyle and buy only items they can actually afford. They do not book a vacation and use credit cards to pay for the entire trip. This way they do not pay the high interest rates. They prefer to pay cash because the interest is zero.

If they use a credit card to make a purchase, they are sure they have enough money to pay the bill when the statement arrives.

4. They live on a written monthly budget.

Millionaires did not earn their money by luck. They took the time to figure out what comes in and what goes out of their bank account each month. In other words, they create and stick to a written monthly budget.

Budgets can eliminate unnecessary expenses and keep you in full control of your financial future. In addition, monthly budgets prevent overspending and enable millionaires to achieve their financial goals.

5. The don’t leave money on the table.

One cannot accumulate wealth by “leaving money on the table.” This is why millionaires, regardless of their salary, are aware of tax avoidance strategies. As Philip Van Doorn explains on MarketWatch, “If you work for a company or organization with a 401(k) or similar retirement plan, your employer is likely to make matching contributions.”

So “if your employer matches up to five percent, it means that if you contribute five percent of your pre-tax salary to your retirement account, your employer will also contribute five percent.” Boom: You just got a 100 percent return on your investment in the first year and you set aside the equivalent of 10 percent of your salary.”

“It’s not enough – 20 percent total savings per year is more than enough – but it’s a start, and if you don’t contribute at least the maximum, you will lose a lot of money. Over time, you should also work to maximize your annual contribution to your 401(k).”

The IRS has a basic contribution limit of $18,000 per year, with an additional $6,000 after age 50.

6. They set daily goals.

Whether it’s setting financial projections, planning weekly activities or looking for ways to have more income streams, millionaires are known to set daily goals. This helps them stay focused and gain momentum.

When setting daily goals, be sure to prioritize. This means doing the most important things first. For example, if you want to earn more money, you should pursue activities that will earn you thousands, rather than pursuing actions that will earn you hundreds.

7. Set daily goals.

Whether it is setting financial projections, planning weekly activities, or looking for ways to have more income streams, millionaires are known to set daily goals. This helps them stay focused and gain momentum.

When setting daily goals, be sure to prioritize. This means doing the most important things first. For example, if you want to earn more money, you should pursue activities that will earn you thousands, rather than pursuing actions that will earn you hundreds.

8. They are entrepreneurs.

According to the book ”Millionaire Next Door”:

“Twenty percent of wealthy families in the United States are retirees. Of the remaining 80%, more than two-thirds are led by self-employed entrepreneurs. In the United States, less than one in five households, or 18 percent, is headed by an entrepreneur or self-employed professional. But these self-employed people are four times more likely to be millionaires than those who work for others”

Although it is entirely possible to become a millionaire by working as an employee, millionaires prefer to earn their wealth by doing something they enjoy. After all, life is too short.

I can confirm this. Although I had good jobs, I was not able to earn the money I have as an entrepreneur. It was risky and there were times when I stumbled, but it paid off both financially and personally.

9. They are patient.

Although we hear the stories of people who became millionaires overnight, the reality is that it is not much. The average millionaire lives by the motto that patience is a virtue. That is why the millionaire next door does not reach this status until they are 50 years old. They earn a modest salary, invest wisely, and focus on living below their means rather than pursuing schemes to get rich.