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10 Game-Changing Things You Don’t Know About Millionaires

10 Game-Changing Things You Don’t Know About Millionaires

We all have our opinions about millionaires and the rich. I’d like to challenge some of those opinions and show you some things you might not know about millionaires. It’s not about luck, fancy lifestyles or greed. It’s about developing a mindset that sets you apart from the rest. Here are 10 game-changers that you didn’t know about millionaires…

1. Millionaires are Hard Workers

During a survey by Spectrem, 94 percent of millionaires said that hard work was the number one factor in their success. This could be in the form of literally building their businesses from the ground up, like Sam Walton and Walmart, or creating and acting upon new ideas everyday, like Steve Jobs and Apple.

How you can apply it: Hard work is a must if you want to be a millionaire. You’ve got to accept that and be willing to get your hands dirty.

2. Most Millionaires are Self-Made

Today, the amount of millionaires who inherited their wealth is around 18 percent and that number seems to be falling. Most millionaires started out with very little and many were born into extreme poverty. Some of the most popular and most impressive examples include Carl Icahn, Larry Page and Jeff Bezos.

How you can apply it: Don’t use another person’s inheritance as an excuse for why you can’t do it yourself. Most millionaires made their money on their own; that means you can do the same if you put your mind to it.

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3. Millionaires Want You to be a Millionaire

Millionaires understand that there is enough wealth for you to be rich too and it actually helps them in different ways. More millionaires means more business and enterprise and that helps everyone. Robert Kiyosaki and Donald Trump even wrote a book called “Why We Want You to be Rich”. It’s true, it’s not a battle, but more of a buddy system.

How you can apply it: Become a millionaire. Next! I know, easier said than done, but this list is a great starting point for you to be on your way. Keep reading…

4. Millionaires are Not Jacks of All Trades

You’ve heard the phrase “Jack of all trades, master of none” right? Well millionaires are quite the opposite. It’s common for them to be masters of one, or possibly a few different things, but not many. Millionaires figure out what they’re good at and what they’re passionate about, then they devote their life to it.

How you can apply it: Stop trying to master everything. Figure out what your one thing is and devote everything you’ve got to it. Master your one thing.

5. Millionaires Have Multiple Streams of Income

It’s not just about diversifying, it’s about creating more wealth through different avenues. Warren Buffett owns more than one stock, just like Jeff Bezos owns more than one company. Millionaires find their specialty and branch out. It almost always takes multiple streams of income to truly become rich.

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How you can apply it: Start your multiple streams now. They may start small, but they don’t have to stay small. Try different businesses and investing approaches, just makes sure you understand what you’re doing when you get started.

6. Millionaires Value Education

With the college dropout stories of Mark Zuckerberg (founder of Facebook) and Matt Mullenweg (founder of WordPress), it’s easy to discredit education, but when you consider that most millionaires have a minimum of a bachelors degree, it’s easy to see that these successful dropouts are the exception to the rule. The top 3 degrees for millionaires are engineering, business and economics. As far as the super-rich, economics degrees seem to take the cake. And remember, many of these college dropouts used the knowledge they learned in college to start their business in the first place.

How you can apply it: Get an education! If you decide to dropout and become a self-made millionaire, more power to you, but getting started with an education will increase your chances for earning more money.

7. Most Millionaires Don’t Feel Rich

Generally, when you’re a millionaire, there are still thousands of people with more money than you, so millionaires don’t often think of themselves as “rich”. We all tend to define success in our life by the next thing coming and millionaires are no different. Just like you think you will be happy with that next promotion or that new car, millionaires usually think they would be considered rich when they hit the next million or a billion.

How you can apply it: We can all takeaway an important lesson here. Be where you are now and be happy with it. You are getting better, wealthier and smarter, but that doesn’t mean you have to wait until you hit the next level to enjoy it.  Enjoy your life now.  Right where you are.

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8. Millionaires Don’t “Look” Rich

You probably see people all the time who drive brand new Escalades and live in mini-mansions, and they’re probably in debt up to the roof. They might even be broke based on their income, versus their spending. The “keeping up with the Joneses syndrome” traps many people. The Joneses are broke! Most millionaires live in conservative homes and drive cars that are a few years old. They focus more on having money than having stuff.

How you can apply it: Never focus on what other people think. Budget your money and invest wisely. That’s the road to wealth. Huge homes and fancy cars are quick roads to piles of debt. The main takeaway here is: spend less than you make!

9. Millionaires Know They Can’t do it Alone

They may be self-made, but that doesn’t mean they did it alone. Millionaires understand the value of making friends, networking and seeking help from experts when they need it. Most millionaires report that they had a mentor along the way and that their mentor played a huge role in their success.

How you can apply it: If you want to do something big, you’re going to need help. Becoming a millionaire is no different. It’s important to reach out to others for advice and mentorship.

10. Millionaires Love to Shop…Differently

If you develop a habit of buying new clothes, cars and toys on a regular basis, you are developing a habit that will leave you broke. Millionaires love to shop, but they shop differently. They look for good deals on businesses and stocks, not new motorcycles and 1000 inch TVs. They know the difference between assets and liabilities and they focus on the former rather than the latter.

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How you can apply it: Shift your mindset to buying assets over liabilities. One of the most important factors between the rich and poor is that rich people buy assets and poor people buy liabilities. Shop like a rich person.

Today there are literally millions of millionaires across the globe. Millionaires are different. They are not the status quo, but being different may not mean what you thought it did. These are all common characteristics of millionaires and even billionaires. Develop these traits and you’re on your way to becoming one.

Featured photo credit: OnInnovatio via flickr.com

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Last Updated on January 2, 2019

How Personal Finance Software Helps You Get More Out of Your Money

How Personal Finance Software Helps You Get More Out of Your Money

Do you know what mental health experts point to as the biggest cause of stress in the United States today? If you said “money,” then ding, ding, we have a winner!

Three out of four adults today report feeling stressed out about money at least part of the time. People are either worried about not having enough money or whether they’re putting the money they do have to use in the best possible way.

Your money is either in charge of you or you’re in charge of it, there’s no middle ground. Using some type of personal finance software can help alleviate some of that money stress and better allow you to manage your money effectively. Without it, you may just be setting yourself up for constant financial worry. Life is already tough enough and there’s no need to make it more difficult by simply hoping your money issues will all work out in your favor. Hint: they won’t.

This guide will help you to understand how personal finance software can better assist with both accomplishing long term financial goals and managing day-to-day aspects of life.

Whether it’s tracking the savings plan for your child’s college fund or making sure you won’t be in the red with the month’s grocery budget, personal finance software keeps all this information in one convenient place.

What Exactly is Personal Finance Software?

Think of it like the dashboard in your car. You have a speedometer to tell you how fast you’re going, an odometer to tell you how far you’ve traveled, and then other gauges to tell you things like how much gas is in the tank and your engine temperature. Personal finance software is essentially the same thing for your money.

When you install this software on your computer, tablet, or smartphone, it helps to track your money — how much is going in, how much is going out, and its growth. Most personal finance software programs will display your budget, spending, investments, bills, savings accounts, and even retirement plans, levels of debt, and credit score.

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How It Leads to Financial Improvement

It shouldn’t come as a surprise, but people who regularly monitor their finances end up wealthier than those who don’t. When you were a kid, keeping track of all of your money in a porcelain piggy bank was pretty easy. As we get older, though, our money becomes spread out across things like car payments, mortgages, retirement funds, taxes, and other investments and debts. All of these things make keeping track of our money a lot more complicated.

Some types of personal finance software can help make things a little less complicated, setting you up to meet financial goals and taking away some of the stress associated with money.

Even if you already have a Certified Financial Planner (CFP) some type of personal finance software can be of great benefit. Whereas CFPs focus on the big picture of your money, they don’t handle the day-to-day aspects that determine your overall financial health.

It’s also not nearly as complicated as you might think and can take out a lot of the tedium that comes with doing everything on an Excel spreadsheet or with a pad and pencil.

Types of Personal Finance Software

When it comes to personal finance software, it generally fits into two categories: tax preparation and money management.

Tax preparation software such as Turbo Tax and H&R Block’s software can help with everything from filing income taxes to IRS rules and regulations and even estate plans. Plus, there’s the benefit of filing online and getting your refund check a lot faster than if you were to mail off your forms after waiting in line at the post office.

For the purpose of this article, however, will be focusing more on the personal finance software that aids with money management.

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Money management personal finance software will help you to see the health of your cash flow, pay down debt, forecast for expenses and savings, track investments, pay bills, and do a host of other things that 30 years ago would have practically required a team of accountants.

When to Use Personal Finance Software

So far we’ve gone over what exactly personal finance software is and how it can be a benefit to your money. The next logical step in this whole equation is determining when it should be used and how is the best way to go about getting started using it.

Below are four of the most common and practical ways to use personal finance software. If all or any of these apply to you and your money, then downloading some type of personal finance software is going to be a smart move.

1. You Have Multiple Accounts

There’s a good chance that when it comes to your money, it’s in more than one place. Sure, you probably have a checking account, but you may also have a savings account, money market account, and retirement accounts such as an IRA or 401k.

If you’re like the average American, you probably have two to three credit cards as well. Fifty percent of Americans also don’t have loyalty to just one bank and spread their money across multiple banks.

Rather than spending hours typing in every detail of every account you have into a spreadsheet, many programs allow you to easily import your account information. This will help to eliminate any mistakes and give you a bird’s eye view of everything at once.

2. You Want to Automate Some or All of Your Payments

Please don’t say that you’re still writing out paper checks and dropping each bill in the mailbox. While it’s noble that you’re doing your part to keep postal workers employed, we’re 18 years into the 21st century and you can literally pay every bill online now.

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There’s no need to log into every account you have and type in your routing number either.

With personal finance software you can schedule automatic payments and transfers between all of your imported accounts. Automatic transfers will help to make sure you have the necessary funds in the right account to ensure all bills are paid on the appropriate date. Late fees are annoying and do nothing but cost you money. It’s time that you said goodbye to them once and for all.

3. You Need to Streamline Your Budget

Perhaps the best feature of personal finance software is that it allows you track everything going in and out of your virtual wallet.

Nearly every brand of personal finance software out there has easy-to-read graphs and charts that allow you track every cent you spend or earn, should you choose. You might be pretty amazed when you see just how much you spent on eating out last month or if you splurged a little more than you should have on Christmas gifts last year.

Every successful business on the planet has a budget and using personal finance software can help you trim the fat on your spending in ways that affect your everyday life.

4. You Have Specific Goals to Meet

Maybe it’s paying off debt or saving for up something like a European vacation. Whatever your financial goal is, whether it’s long-term or short-term, personal finance software programs are one of the savviest ways to go about reaching those goals.

You can do everything from set spending alerts to notify you when you’re over budget to automating what percentage of your paycheck goes to things like retirement investments. The personal finance software that you choose should show you exactly how close you are to hitting those goals at any given time.

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How to Get Started

From AceMoney to Mint and Quicken, there ’s no shortage of personal finance software apps out there. Many of these programs are free to download and will allow you to pay bills, invest, monitor your net worth and credit profile, and even get a loan with the swipe of a finger.

Other programs may only offer you limited services and will require a one-time fee or subscription to unlock all that they offer. These fees can often vary from as little as two dollars to 50 bucks a month.

It’s best to start off with the free version and then gauge whether you’re able to accomplish everything you’d like or if it’s worth exploring one of the paid options. Often times the subscription programs come with assistance from financial planning and investment experts — so that can be a real benefit.

When deciding which personal finance software program to use, it’s also important to look at how many accounts you wish to monitor. Certain programs limit the number of accounts you can add. Be sure that if you have checking, credit card, and investment accounts to monitor, that you choose a service that can monitor them all.

Finally, when looking around for the right personal finance software that meets your needs, make sure that you’re comfortable with the program’s interface. It shouldn’t be expected that you recognize every single feature instantly, but if the features don’t seem readable and manageable to you, then you’re not as likely to use it and get the full benefits.

Final Thoughts

Personal finance software can go a long way in helping you to take control of your money and meeting your financial goals. It’s important to note, however, that some focus more on budgeting and expense tracking while others prioritize investing portfolios and income taxes. Explore several different programs and read reviews to find the one that’s right for you.

In this day and age, managing one’s personal finances in a secure manner that allows the user to have a real-time visual representation of their money is easier than ever before. With the numerous applications that are out there — both free and subscription-based — there’s no reason that every person can’t take control of their money and ensure they’re making smart money moves.

Featured photo credit: rawpixel via unsplash.com

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