Did I peak your interest? I can see you shaking your head over there. Hear me out though and learn more about the habits of millionaires!
The rich are rich for a reason – most of them know how to properly manage their money.
Sure, there are always stories about the rich who spend their money like crazy and end up in bankruptcy.
But, surprisingly, the average millionaire is frugal, and they know how to manage their money well.
Here are some examples of millionaires and billionaires who are frugal:
- Warren Buffett lives in a house that he bought in 1958 for around $30,000.
- Mark Zuckerberg drives an Acura.
- John Caudwell (worth $2.7 billion) rides his bike 14 miles to work every day and even cuts his own hair.
- Jim C. Walton (son of Walmart founder) drives an old truck with no air conditioning.
If you want to be rich (whatever amount of money or lifestyle that means to you), continue reading in order to learn more about the money management habits of millionaires.
A lot of millionaires have many sources of income, and this is one of the many great habits of millionaires.
They may have a day job, a business, rental properties, dividend income, etc, etc. The list goes on and on, but it allows them to bring in more money than a traditional 9-5.
They also do this because millionaires know that one source of income may not last forever, and they are able to lessen their risk by having multiple income streams.
Didn’t you wear that yesterday?
Former President Barack Obama once said, “You’ll see I wear only gray or blue suits. I’m trying to pare down decisions. I don’t want to make decisions about what I’m eating or wearing. Because I have too many other decisions to make.”
Many other successful people feel the same way…
The average family spends $1,700 a year on clothing, which is a lot of money. Plus, the average person wastes anywhere from 10 to 30 minutes a day when deciding what to wear!
Having multiple outfits can lead to wasting time deciding what to wear, as well as wasting money.
Successful people and millionaires are known to set goals, especially long-term ones. They are extremely determined and without goals, it would be hard to be successful.
Setting goals are important because without a goal, how do you know where you’re heading? Goals can help keep you motivated and striving for your best.
Financial Education Is Key
When millionaires are unsure of a financial decision or implication, they either seek out financial advice from an expert and/or they seek out the knowledge they need to know by educating themselves.
Millionaires are always learning.
They read numerous books, attend classes, read the newspaper, and more.
I’m Paid First
Millionaires pay themselves first.
Sure, they have more money to work with, but they always make sure to save money before spending it.
Paying yourself first is when you put money into savings as soon as you receive your paycheck. Doing this may allow you to save more money and cut back on unneeded spending, and it can help you prepare for the future.
Invest, Invest, Invest
Millionaires make their money work for them, and that is how they stay rich.
Investing is important because it means you are making your money work for you. If you aren’t investing, your money is just sitting there.
This is important to note because $100 today will not be worth $100 in the future if you just let it sit under a mattress or in a checking account. However, if you invest, then you can actually turn your $100 into something more. When you invest, your money is working for you and hopefully earning you income.
Coupons and Haggling.
I bet you aren’t laughing at that coupon user now…
Yes, one of the many habits of millionaires is that they tend to still use coupons and even negotiate in order to get the best pricing!
According to AOL’s article Guess Who Clips the Most Coupons, households with average incomes of $100,000 or more actually clip more coupons than those who bring in less than $35,000.
Any millionaires care to share what I may have missed? What are you doing to become a millionaire?
Good Luck, Newbies