Tag Archives: millionaire mindset

19 Things The Millionaire Next Door Won’t Tell You

Although having a million bucks isn’t as impressive as it once was, it’s still nothing to sneeze at.

In fact, Reuters reports that in 2009 there are 7.8 million millionaires in the United States. That’s a lot of people and the odds are one or two of them are living near you.

Heck, one of them might even be your neighbor. In fact, the odds are very good that it is your neighbor.

But, Len, you don’t know my neighbor.  That guy doesn’t look anything like a millionaire.

Well, guess what? A millionaire who is truly financially savvy won’t be easily recognizable. 

1. He always spends less than he earns.  In fact his mantra is, over the long run, you’re better off if you strive to be anonymously rich rather than deceptively poor.

2. He knows that patience is a virtue. The odds are you won’t become a millionaire overnight.  If you’re like him, your wealth will be accumulated gradually by diligently saving your money over multiple decades.

3.  When you go to his modest three-bed two-bath house, you’re going to be drinking Folgers instead of Starbucks.  And if you need a lift, well, you’re going to get a ride in his ten-year-old economy sedan.  And if you think that makes him cheap, ask him if he cares.  (He doesn’t.)

4. He pays off his credit cards in full every month.  He’s smart enough to understand that if he can’t afford to pay cash for something, then he can’t afford it.

5. He realized early on that money does not buy happiness.  If you’re looking for nirvana, you need to focus on attaining financial freedom.

6. He never forgets that financial freedom is a state of mind that comes from being debt free.  Best of all, it can be attained regardless of your income level.

7. He knows that getting a second job not only increases the size of your bank account quicker but it also keeps you busy – and being busy makes it difficult to spend what you already have.

8. He understands that money is like a toddler; it is incapable of managing itself.  After all, you can’t expect your money to grow and mature as it should without some form of credible money management.

9. He’s a big believer in paying yourself first. Paying yourself first is an essential tenet of personal finance and a great way to build your savings and instill financial discipline.

10. Although it’s possible to get rich if you spend your life making a living doing something you don’t enjoy, he wonders why you do.  Life is too short.

11.  He knows that failing to plan is the same as planning to fail.  He also knows that the few millionaires that reached that milestone without a plan got there only because of dumb luck.   It’s not enough to simply declare that you want to be financially free.

12. When it came time to set his savings goals, he wasn’t afraid to think big.  Financial success demands that you have a vision that is significantly larger than you can currently deliver upon.

13. Over time, he found out that hard work can often help make up for a lot of financial mistakes – and you will make financial mistakes.

14. He realizes that stuff happens, that’s why you’re a fool if you don’t insure yourself against risk. Remember that the potential for bankruptcy is always just around the corner and can be triggered from multiple sources: the death of the family’s key bread winner, divorce, or disability that leads to a loss of work.

15. He understands that time is an ally of the young.  He was fortunate enough to begin saving in his twenties so he could take maximum advantage of the power of compounding interest on his nest egg.

16. He knows that you can’t spend what you don’t see.  You should use automatic paycheck deductions to build up your retirement and other savings accounts.  As your salary increases you can painlessly increase the size of those deductions.

17. Even though he has a job that he loves, he doesn’t have to work anymore because everything he owns is paid for – and has been for years.

18. He’s not impressed that you drive an over-priced luxury car and live in a McMansion that’s two sizes too big for your family of four.

19. After six months of asking, he finally quit waiting for you to return his pruning shears.  He broke down and bought himself a new pair last month.  There’s no hard feelings though; he can afford it.

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Source:

http://www.businessinsider.com/how-to-act-like-a-millionaire-2013-8

8 Ways Any Millennial Can Be a Millionaire in 5 Years

Millennials are hitting the workforce in large numbers each year, facing challenges as they do so. Recent research from USA Today reveals that millennials earn 20 percent less than their parents did at the same age, even once they have a college diploma in hand. This, combined with heavy college loan debt, has forced many graduates to give up on their fantasies of owning multimillion-dollar homes on every coast or driving a luxury automobile to the office each day.

 

But an overflowing bank account isn’t out of reach for every millennial. In fact, there are plenty of millennials who will take the same route Mark Zuckerberg and Snapchat’s Evan Spiegel took. Here are eight things millennials can do to have a shot at becoming multimillionaires by 2022.

Start a business.

This option gives you the best odds of becoming a multimillionaire in the future, but success is obviously not guaranteed. A winning idea is, of course, a very important ingredient, but you should also know other things you’ll need to do to improve your odds of success. Above all, be prepared to put in years of hard work and overcome multiple obstacles before you achieve your dreams.

Find a mentor.

Some of the most successful people in business today will readily admit that outstanding mentors played a significant role in their career growth. Studies connect mentorships to a surprising number of success stories. Find someone who has achieved the type of success you hope to earn someday and ask for the opportunity to learn from that person. Their insight and experience may make the difference that helps separate you from other millennials looking to succeed.

Develop a product.

In today’s Shark Tank-Kickstarter environment, it’s possible to invent a product concept, create a prototype, and get funding to begin manufacturing and distribution. There are multiple ways to approach taking your idea from concept to reality, but you’ll give yourself a great head start if you create something that is inexpensive to produce.

Take over an existing business.

Why start at the beginning when there are existing businesses that need ownership? Search for a business with an owner who may be interested in retiring or who is actually ready to move on. Be prepared to work with the business for some time before eventually offering to take it over. If you have difficulty locating one, a business broker can help you identify the perfect business to suit your personal and professional interests.

Invest

Investing can be tricky, but it’s one of the best ways to get a return on the money you currently have. If you want to make significant money quickly, you’ll need to take some major risks, which means being willing to lose all the money you put in. For best results, start by investing a good amount of money. You can make more potentially if you risk more. Pick certain sectors that you find yourself most interested in and concentrate on investments in those spaces. Before any of this though, take time to learn as much as possible about the stock market.

Save

With the nearly nonexistent interest rates on savings accounts today, you likely won’t see the money you put into the bank multiply. However, if you make significant sacrifices, such as living at home with your parents, working multiple jobs, or sharing a place with one or more roommates, you may be able to set aside a considerable part of your salary each month. Like my mom always said, you can’t save much money if you’re busy spending it just to live. If you conserve over time, you’ll have a nest egg you can put toward investing or purchasing rental property that can more rapidly multiply your monthly income.

 

Start a side hustle.

If you need the security and benefits that come with a salaried position, a side job may be a great way to generate extra income. This could be something as simple as delivering pizzas or bartending or something as complex as starting your own business on the side. The former can bring immediate cash, but the latter can give the long-term benefit of eventually being able to turn it into a full-fledged business.

 

Boost your salary.

The key to successful saving and investing is to first bring in the best income possible. Don’t settle for a substandard salary. Look at the market rates for your skills in your area and make sure you’re at least within the range. If not, search for a different job with people who will appreciate your education and experience. Learn top salary negotiation strategies to get the most out of every job offer.

With hard work and sacrifice, millennials can significantly increase their income over just a few years. While there’s no guarantee of becoming a multimillionaire, it’s well worth the effort. If you don’t succeed in that timeframe, at least you’ll have a good start at becoming a multimillionaire in the years that follow.

Source:

https://www.entrepreneur.com/article/297322

8 Rules for Succeeding as an Entrepreneur

So what are my tips for entrepreneurs?

1. People are more important than strategy.

If you focus on finding people you want to be with and who you think are talented, chances are you’ll come up with great ideas together that will work. If you start with an idea and then try and find the talent, chances are you will be putting a square peg in a round hole. If you are familiar with Jim Collins’s books, it is what he describes as the “who” rather than the “what.” 

2. Know what customers really want.

Business school teaches the importance of listening to customers. That’s great if you know what to listen for. Sometimes customers don’t know what they need but can describe what they really want or what they hate. For example, people don’t want to buy gasoline, but they do want to be able to drive to the beach. Henry Ford has often been quoted as saying, “If I’d asked my customers what they wanted they’d have said faster horses.” Whether he said it or not, the point is a good one. What business you are in is driven by your ability to know what people really want, not what they say they want.  

3. Market size is everything.

When VCs look at any investment, they will try to forecast the potential market. If the market is big enough, even a half decent company could get to be a decent size. Dominating a really small market may take ten times the effort. Work out how big your opportunity is and what piece of that market you think you could own.

4. Be the customer.

How many times have you seen employees acting against the interest of their company, because the rules of the company made them act that way? Billions of dollars are lost every year because employees do what they’ve been told to do, not what they think they should do. If you are constantly putting yourself in the shoes of the customer and listening to your staff, you will eliminate the craziness.

5. Don’t chase bad revenue.

When starting out, you want customers, but be wary of taking just anyone’s money. Some customers can be bad for business, especially in the services sector. If you take on customers that pay well but make your employees’ life hell, they’ll rightly quit and then you won’t have a business.

6. Understand your culture.

Businesses are like families; they have values and a way of being. These are often a function of the leader or founder’s values. As you grow, you need to be sure to involve people who share those values. For example, if your company has a laid-back, fun culture where you empower people and don’t take yourselves too seriously, then don’t hire people who want a corner office and an assistant.

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7. Timing is everything.

One of the biggest reasons businesses succeed or fail is a function of timing. Being in the right place at the right time matters. All of which goes to my first point about not fearing failure; in life, you don’t always know until you try.

8. Think about growth.

We have all wondered what we’d do if we won the lottery. When starting a business, you need to think about what happens if it actually takes off. How will you scale? Who would you hire tomorrow? Would you open up in another city? Would you franchise the business? If you are trying to build the airplane while flying it, don’t be surprised if you crash.

Source:

https://www.entrepreneur.com/article/295305

 

Why Valedictorians Rarely Become Rich and Famous — and the Average Millionaire’s College GPA is 2.9

A Boston University researcher who followed valedictorians and salutatorians into adulthood found that most did in fact achieve the traditional markers of success. Nearly everyone graduated from college, where their average GPA was 3.6; the majority went on to earn a graduate degree; and nearly half landed in top-tier professional jobs.

So far, so expected.

“But how many of these number one high-school performers go on to change the world, run the world, or impress the world? The answer seems to be clear: zero.”

The above is a quotation from Eric Barker’s new book, Barking Up the Wrong Tree, where he cites the Boston University research.

Barker’s point is that while top students generally go on to be successful, few of them go on to achieve the kind of wild success most of us dream of.

Instead, kids who struggle with, or don’t particularly enjoy, formal education are more likely to get there. In fact, a study of 700 American millionaires found that their average GPA was just 2.9.

rich and famous lifestyle

There are two potential reasons for this phenomenon, Barker writes:

1. “Schools reward students who consistently do what they are told” — and life rewards people who shake things up.

Karen Arnold, the Boston University researcher, told Barker: “Essentially, we are rewarding conformity and the willingness to go along with the system.”

In other words, the valedictorians found out exactly what the teachers wanted and delivered it consistently.

But if you think about the world’s most influential thinkers and leaders, most came up with an out-of-the-box solution to some political or scientific issue. Going along with what was already working moderately well never made anyone famous.

When he visited the Business Insider office in May, Barker explained: “In school, rules are very clear. In life, rules are not so clear. So a certain amount of not playing by the rules is advantageous once you get out of a closed system like education.”

2. “Schools reward being a generalist” and the real world rewards passion and expertise.

Barker explains that, even if you’re fascinated by history in high school, you can’t spend all your time studying the European Renaissance. At some point, you’ve got to stop and move onto your math homework.

But once you’re in the working world, you’ll need to excel in a particular domain — and other knowledge or skills won’t matter so much.

And here’s the real shocker: Arnold found that intellectual students who genuinely enjoylearning tend to struggle in high school. They find the education system “stifling” because it doesn’t allow them to pursue their passions deeply.

Barker summed up all the research nicely in the interview with Business Insider: “Valedictorians often go on to be the people who support the system — they become a part of the system — but they don’t change the system or overthrow the system.”

None of this is to say, of course, that if you were your high-school valedictorian, you’ll never achieve big-time success. You might very well.

But you’ll have to keep in mind that playing by the rules won’t get you as far as it once did. Taking risks and going against the grain — “sticking it to the man,” if you will — is harder to do, but it’ll get you farther.

Source:

https://www.entrepreneur.com/article/295095

5 Signs You Have What It Takes to Become a Millionaire

If you ever wanted to become a millionaire (who doesn’t?), now’s the right time. According to a survey by Spectrem Group, there are more millionaires than ever in the United States.

 

As of the end of 2016, there were a record-breaking 10.8 million millionaires in the U.S., which is an increase of about 400,000 from the year prior. The study points to the bounce-back of the economy since the 2008 Great Recession as well as the stock market surge after the 2016 presidential election as the major reasons behind the increase in millionaires.

 

While everyone thinks they deserve to be a millionaire, few people actually have what it takes to become one. There are certain characteristics, however, that many of the world’s most affluent people have in common. If you recognize any of these traits in yourself, you may be one of the few who is destined to become a millionaire.

 

Image source: Getty Images

1. You’ve always had an entrepreneurial spirit

According to the Economist, about half of the world’s millionaires made their money by starting their own businesses. And many of the richest of the rich got their start early on in life.

 

Mark Cuban starting selling garbage bags to his neighbors at 12 years old because he couldn’t get a job. Warren Buffett had a similar idea, selling packs of gum to his friends at age 6. And Richard Branson, at 11 years old, was already breeding and selling pet parakeets.

 

It’s that entrepreneurial spirit and work ethic that drives many kids and teenagers to grow into adults who launch billion-dollar companies.

2. You have several income streams

While it’s everyone’s dream to start the next billion-dollar company, that’s not a possibility for every aspiring millionaire. It’s far more achievable to create several smaller income streams that amount to a million dollars.

 

In one five-year study of self-made millionaires, Thomas C. Corley discovered that most of them had multiple streams of income. About 65% had three streams, 45% had four streams, and 29% had five or more streams.

 

“Three streams of income seems to be the magic number for the self-made millionaires in my Rich Habits study,” Corley explained, “but the more income streams you can create in life, the more secure will your financial house be.”

3. You’re constantly learning

 

Author and self-made millionaire Steve Siebold spent over 30 years interviewing some of the most affluent people in the world, and he found that many of them share a common trait: reading.

 

“The middle class reads novels, tabloids, and entertainment magazines,” he writes in his book. “Walk into a wealthy person’s home and one of the first things you’ll see is an extensive library of books they’ve used to educate themselves on how to become more successful.” 

 

Many of the most well-known billionaires appear to prove his point, too. Bill Gates, for instance, reads about 50 books a year, Warren Buffett is said to spend about 80 percent of his workday reading, and when Elon Musk was asked how he learned to build rockets, he responded, “I read books.”

4. You pay yourself first

It’s easy to get into a habit of putting saving for your financial goals off until later — until you discover that “later” never arrives. That’s why many millionaires think of saving and investing like it’s just another bill you have to pay.

“Most people spend some money, pay their bills and save what’s left,” Nancy Butler, a Certified Financial Planner, says. “And that’s backwards: You should be saving for your financial goals first, paying your bills and then consider spending the money you have left over.”

 

Many financial experts recommend the 50/30/20 rule, which is that 50% of your income should go toward necessities (your mortgage, bills, food, etc.), 30% should go toward things you want (new clothes, dining out), and you should save the remaining 20%.

5. You can live below your means

Warren Buffett has famously lived in the same house in Omaha, Nebraska, since 1958, and Mark Zuckerberg — who is worth roughly $56 billion– drives a Volkswagen.

 

Mastering the art of delayed gratification is a key characteristic many millionaires share, because they can control their urges to spend money as soon as they make it. Most people struggle with this urge (and the fact that the average U.S. household carries over $7,000 in credit card debt proves it), but the good news is that you can train your brain to get better at avoiding impulse purchases.

 

According to personal finance blogger Lance Cothern, there are a few strategies you can use to improve your impulse control, including writing down your financial goals, waiting 24 hours when you feel the urge to make impulse purchases, and asking someone older than you about their biggest financial regrets so that you can avoid making the same mistakes.

 

While becoming a millionaire seems like an impossible feat to many people, it’s an attainable goal — if you have the right mindset. And if you already share the financial traits of some of the richest people in the world, you may be well on your way to riches.

How-To-Become-A-Millionaire-1

Source:

http://host.madison.com/business/investment/markets-and-stocks/signs-you-have-what-it-takes-to-become-a-millionaire/article_6d819578-f67c-5fb8-9fb1-2dddda18967e.html