I have yet to meet someone who wouldn’t like to become financially wealthy. Unfortunately, most people have little knowledge of what it takes to build wealth and even less have a plan on how they hope to accomplish it. Building wealth is not as hard as most people imagine. It turns out wealth building comes down to a few key habits applied consistently over a period of time.
Overview from 1st Episode:
STATISTICS ABOUT MILLIONAIRES IN THE UNITED STATES
17.3 million individuals are millionaires in the United States, 41% of the world’s millionaires.
This means that 7% of the U.S. adult population are millionaires
The 2016 study also showed that 78 percent started out as middle class or poor, only 22 percent grew up in the upper class.
Education is important, with 84 percent of millionaires having a college degree according to Spectrem.
One in three funded their own college education without debt.
Research conducted by Thomas Corley of Rich Habits, showed that 86 percent of wealthy people who work full time put in 50 hours or more each week at their career.
66 percent of millionaires own their own business.
The Millionaire Next Door cites that the percentage of first-generation millionaires is 80 percent, dispelling the idea that most millionaires just inherit their money from a prior generation.
3 Characteristics of the Wealthy
Self-Awareness + The Awareness of Others
Have a giving mentality - always give more than you take
5 Millionaire Habits
1. Make Smart Buying Decisions
It may be great to have a shiny new Ferrari or a Lamborghini, and although these status symbols may look nice in your driveway, they will hinder your long-term goal of accruing wealth.
Financially successful people avoid buying “must have” status objects such as expensive luxury cars, boats, jewelry, and other luxury accessories.
The problem with buying status symbols is that you always have to upgrade them and buy the latest models.
Financially successful people save themselves from these hassles by avoiding gaudy status symbols. Trying to “keep up with the Jones’” will leave you in a never-ending cycle of being broke.
2. Live Below Their Means
Financially successful people are able to adequately live off of what they earn.
Living below your means requires keeping your monthly expenses below your monthly income.
Frivolous purchases and wants are postponed and only needs are met.
It doesn’t mean that you can’t splurge occasionally, but these purchases should be the exception rather than the rule.
It is impossible to increase your wealth if you spend every dime that you have. Just because you have the money doesn’t mean you have to spend it.
3. Make Their Money Work for Them
Wealthy people understand the importance of maximizing their dollars. They often take calculated risks with their money and seek solid returns for their dollars. Every dollar that they have produces for them and helps to build more wealth.
They do not waste their dollars on speculative ventures and get-rich-quick schemes. Wealthy people understand that real wealth is built over time.
For many, this means a simple portfolio of low cost index funds.
4. Pay Themselves First
Paying yourself first is a great principle to follow whether you make $20,000 or $200,000 per year. Before you pay any of your bills, you should pay yourself first. Paying yourself first helps you to make savings a priority.
A good rule of thumb is taking 10% of your income and setting it aside as soon as you get paid. Making savings automatic is a great way of making saving money easier. Saving small amounts of money can add up over time.
5. Have a Plan and Stick to It
Millionaires plan to be financially independent. They devote their time, energy, and resources to building wealth. They create a financial plan and stick to their plan.
Their goal is to be financially independent and they allocate their time accordingly to make this happen. It’s not about how much money you make but what you do with the money that you make.