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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 June 6, 2019

The Average Retirement Savings and How to Save Wisely

The Average Retirement Savings and How to Save Wisely

Are you on track for retirement?

If not, don’t worry, I’m not sure either. I save each month and hope for the best.

Fortunately, I’m at an age where most people don’t save so I’m ahead of the curve.

But, what if you aren’t in your 20s? What if you’re near retirement and are looking to gauge where you stand?

If so, keep reading. Here’s how to prepare for retirement and save wisely during the process.

What Does the Average American Have Saved for Retirement?

Saving for retirement is tricky.

Tell someone straight out of college to save $10k a year for retirement and it’ll be next to impossible.

Make the same request to someone decades older and they’d be more likely to be able to save this amount. But, a 20-year old college student can be “financially ahead” of someone saving more than them. Why?

Age matters in your financial journey. The younger you are, the more time you have to save and put compound interest to work. As you get older and have more saving power, you’d have less time to put compound interest to work.

Here are the average savings Americans hold by age bracket:

20’s – $16,000

During this stage, most people are paying loans and moving up the corporate ladder. Your best bet during this stage is to focus on eliminating debt and increasing your income. Don’t focus only on getting a high-paying job neither.

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Instead, focus on learning via Podcasts, reading books, and taking specialized courses. Doing this will make you more valuable and give you more career options.

30’s – $45,000

At this stage, you’ve hopefully escaped your entry-level salary and work at a career you enjoy. Your earning power has increased but you now have more obligations. For example, marriage, kids, and a mortgage.

Set a plan to pay off all your debt and focus on eliminating unnecessary expenses. Leverage financial tools like Personal Capital to ensure you’re on track for retirement.

40’s – $63,000

This is the stage where you’re at the prime of your career. Top financial institutions recommend you have at least 2 to 4 times your salary saved up. If you’re falling behind, start maxing out your 401K and Roth IRA accounts.

50’s – $115,000

During your fifties, you’re close to retirement but still, have time to save. You may be helping your kids pay college tuition and other expenses. Since you’re at the peak of your earning power, max out all your retirement accounts.

60’s – $172,000

By this point, you should have about eight times your salary saved up. If not, you’ll depend primarily on social security benefits averaging $1400 per month. Max out all your retirement options as much as possible before retiring.

Ways to Save Money on a Tight Budget

The sad reality is that most Americans aren’t saving enough for retirement.

Even high-earning power isn’t enough to secure one’s financial future. You need to have the discipline to save for retirement while time is in your favor. Don’t wait for you to have a high salary to save, start with having a small budget.

First, get a clear picture of where you stand. Write down a list of “needs” and “wants.” For example, Netflix and Amazon Prime are “wants” and a “cell-phone” is a need.

Use tools like Personal Capital to analyze your spending patterns. Personal Capital allows you to add all your financial data in one place–making it a powerful option to gauge where you stand.

Once you know all your expenses, organize them from highest to lowest expense. When you can’t cut more expenses, call your service providers to negotiate a lower price. If you’re not good at negotiating, use services like Trimm to lower your monthly expenses.

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How to Save Money Each Month

By this point, you know the average amount of money you should have saved for retirement based on your age.

But, breaking this down into monthly goals can be challenging. Here are some rule of thumbs to follow:

Aim to contribute 10%–15% of your salary each paycheck. Review your progress each week.

Why so often? The reality is that life gets in our way and you will have many financial setbacks. Your goal isn’t to be perfect but to get back on track instead.

Reviewing your finances weekly lets you know where you stand with your retirement. This doesn’t have to be a long process either. All it takes is login in Personal Capital to view your net worth and check how much you have saved for retirement.

Turn saving into a game and aim to save more each month. It will get challenging but you’ll get creative and find more ways to save.

Top Money Saving Challenge Tips

To prepare for your financial future and not be another statistic you need to be different.

How?

By adopting new habits that’ll help you become a saving machine. Here are some ways you can save more:

Automatically Contribute Towards Retirement

If you’re working for a company, you can automatically contribute towards your 401k. If you’re not currently contributing more than 10%, make this your goal. Contribute 1% more today and automatically increase this amount a year from now.

Odds are that you’re not going to be negatively affected by contributing 1% more. Many times we spend our money on things we don’t need. Contributing more towards retirement is a great way to secure your financial future.

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Use the Right Tools to Know Where You Stand

Once you’re contributing more towards your retirement accounts, gauge your progress. Make use of finance tracking apps to help you view the big picture of your retirement.

When I’d first signed up for the app Personal Capital, I didn’t know I had a negative net worth. Despite saving thousands of dollars, my debt brought my net worth to the negative. Knowing this motivated me to save more and spend less.

Now, I have a positive net worth. But, it was because I was able to view the big picture using the app. Find out what your net worth is using a finance tracking app and you may surprise yourself.

Bring in Experts to View Your Blind Spots

If you have too little or too much money saved, you should consider hiring financial experts.

Why?

You may need someone to hold you accountable to help you reach your financial goals. Or, you may need help managing your money as effective as possible.

Regardless of the reason, getting help may help improve your financial situation.

Before you hire an expert, find out which areas you need help the most. For example, if you’re constantly overspending, find a debt counselor. If you’re struggling with choosing the best investment options, hire a financial advisor.

Speed up Your Retirement Contribution

After learning how to manage your money well, the next best thing is to earn a higher income.

You’re capped at how much you can save but not much you can earn. Even if your employer isn’t giving you a promotion, you can still take charge of your financial future. How?

By starting a side-business.

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This will be something you’d work on after you’ve finished your day job. Once you start earning income from your side-business, you’ll be financially better off.

The best part is the more work you put into your side-business,[1] the more potential it has to earn more money.

So start a side-business in an area you’re familiar with. For example, if you enjoy writing, do freelance writing for small e-commerce businesses.

Once you’re earning a higher income, you can contribute more towards your retirement. Don’t wait for the right opportunity to secure your financial future, create one.

Reach Financial Freedom with Confidence

What if you were able to retire tomorrow with no problem, all because you’d have enough money saved up and little to no debt left to pay off? How would you feel?

My guess is that you’d feel happy and relieved.

Most Americans are falling behind their retirement goals for many reasons. They’re not prepared, they carry bad money-habits and are thinking short-term.

For you to retire successfully, you need to work backward and adopt better habits. Contribute more towards your 401K and focus on growing your income.

If you do, you’ll save money and pay debt faster.

Don’t beat yourself up if you’re behind your retirement goals. Take the first step today towards a brighter financial future. Isn’t retirement worth the hard work and sacrifice to be at peace?

Featured photo credit: Huy Phan via unsplash.com

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