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14 Unique Thoughts About Money that Every Millionaire Has

14 Unique Thoughts About Money that Every Millionaire Has

I’m sure you’ll admit that money pre-occupies most minds most of the time. Yet research shows that money and finances are one of the toughest things to crack. You need only look at the wealth distribution statistics to see the financial plight that most of society finds themselves in. The results? Well, quite clearly, financially wealthy people are in the minority.

Logically, we can only conclude that they are different from the average Joe Sope. Be it their thoughts, speech or actions – they are different. In this post, I want to highlight 14 unique thoughts about money that makes millionaires different.

1. They know money is abundant

Millionaires live in an abundant frame of mind. To them, nothing is limited or scarce. Whilst most people scramble around – doing things they hate – because they believe money will run out, millionaires know that money will never run out.

2. They know money is the root of all good

Whilst most believe “money is the root of all evil”, millionaires know that money is the root of all good. Money solves problems. Money gives you the power to bless others. Money changes lives. Money brings pleasure. Money liberates. In the right hands, money is the root of all good.

“What material success does is provide you with the ability to concentrate on other things that really matter. And that is being able to make a difference, not only in your own life, but in other people’s lives.” – Oprah Winfrey

3. They know money comes from Value Add

Millionaires know that the number one ingredient that attracts money is problem solving. When you solve problems, you add value to other people’s lives. When you add value, people are willing to pay you bucket loads of cash – happily so.

4. They know earning more outweighs saving

Most financial gurus will tell you to “save as much as you can”. That’s why most of society spends 40 – 45 years of their lives working to save for retirement. Whilst the benefits of saving are undeniable, millionaires know that your ability to earn more money is far more important than your ability to save.

5. They live within their means

In modern day society, we suffer from consumerism. It suffocates us to a point of no return. There’s nothing wrong with spending money. But there’s something crazy about spending money you don’t have. Millionaires budget. Within that budget, they understand the importance of spending less than you earn.

6. They know that time and money have little correlation

Passive income is a millionaire’s secret. By definition, passive income is earning money without you physically being present. Whilst the majority of people hustle and trade their time for money, millionaires trade and leverage their brains and assets for money.

7. They know that calculated risks are not optional

“Playing it safe” with your money is a sad way of living your life. Being stupid with your money is also a pathetic way of living life. But somewhere in the middle, lies a sweet spot. And millionaires know this. They take financial risks, in a measured and calculative way.

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“Brave people don’t live forever, but cautious people don’t live at all.” – Richard Branson

8. They choose action not lottery

Whilst hard work and hustling every day is not a priority, waiting for the lottery winnings isn’t going to crack it either. Millionaires act. They believe in action that positions them to make money. The majority of society believe in the lottery, and hinge most of their financial success on luck. We all need some stroke of luck. Millionaires need a stroke of luck, too. But the difference is this: for them luck finds them on the path of action.

9. They value life experience over formal education

Life is a great teacher. It teaches you stuff that formal education will never teach you, especially when it comes to making money. It’s no surprise that most educated people are employed by ‘drop outs’. Millionaires realize that you learn more about money in the real world than you do through formal education.

10. They value education over entertainment

Although millionaires value life experience over formal education, they don’t – for one second – under-estimate the importance of education. They read books. They read current affairs and stay abreast of issues.

Sadly, the majority of society are soaked in entertainment. From television to movies, entertainment occupies a large chunk of their time. Over weekends, it’s parties and clubs – all in the name of entertainment. Millionaires know that money and habitual entertainment are an unhealthy combination.

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“Poor people have a big TV. RIch people have a big library.” – Jim Rohn

11. They know you don’t need money to make money

Millionaires use the power of leverage. I’ve already mentioned that millionaires know that there is an abundance of money. Just because you don’t have money, it doesn’t mean that there isn’t money. In addition I highlighted that money is generated when you add value to people’s lives. When you solve problems, people are willing to pay you.

These two factors alone mean that if you have an idea that can solve problems and add value to other people’s lives and there’s someone out there with an abundant supply of funds, you are in a position to make money.

Focus on solving problems and creating ideas. That way, you’ll move from the notion of “you need money to make money” to “You need ideas to make money”. And millionaires know this.

12. They know money is a magnet

With money, you are able to attract things and people – both good and bad. When you value money, you attract good. When you disrespect it, you attract negative aspects. Millionaires know the magnetic power of money and how it can elevate your life to levels you could never reach without it.

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13. They know making money is a process

There’s no such thing as “overnight success”. Millionaires will tell you it took years to become an overnight success. Genuine millionaires have invested time and effort to eventually generate the ideas that make them millionaires. They have made sacrifices that most are not willing to make.

Becoming a millionaire is a process. Cheat the process at your own peril.

14. They know that money should never steal your peace

Ultimately, millionaires know that money is a resource that liberates. But, it should never steal you peace. It should never be chased at the expense of your health, relationships and other important areas of your life.

Conclusion

As I conclude, I think of Andrew Mason, founder of Groupon – a coupon and discount site. Groupon generated the largest revenue in a 12 month period for a start-up company. Founded in 2008, it generated approximately $350 million in 2010.

What was Mason’s ingredients? Simplicity and value add.

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He harnessed the power of collective buying. He created a win-win solution where customers save a ton of money, businesses gets an influx of customers, and Groupon takes up to 50 percent of the cut.

Where money is concerned, millionaires think differently. Apart from lottery winners and criminals, making millions is no fluke. You have to think, speak and act in a way that reflects that you are not mainstream. Go out there and cash in on your thoughts.

More by this author

Peteni Kuzwayo

Peteni is the founder of Run For Wealth. He shares about entrepreneurship and productivity tips on Lifehack.

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Last Updated on July 10, 2020

The Definitive Guide to Get out of Debt Fast (and Forever)

The Definitive Guide to Get out of Debt Fast (and Forever)

Debt can feel crushing, like a weight that is always weighing you down. Looking at those numbers, it can feel as if you’ll never get out from under it. However, if you really want to learn how to get out of debt, it is possible with a great deal of focus and self-control.

Getting out of debt isn’t impossible. Like any big goal, all that it takes is an action plan to identify where you are and creating a plan to zero out your debt.

Identifying All of Your Debts

The first part of paying off your debt is getting a complete picture of what you owe. When you have everything written out in front of you, it makes it much easier to create an action plan. Depending on how much you owe, it might also help you realize it’s not as bad you might have originally thought.

Here’s how you can get started identifying your debts:

1. Own Your Debt

Before you start identifying all of your debts, take a moment to process that you have debt but want to get out of it.

Forgive yourself for any past mistakes, missed payments, or overspending. It might be painful to accept how much debt you have at first, but you must own it.

2. Make a Debt Tracker

It’s astonishing how few people ever created a tracker to understand their total debts. Most likely, it comes from not wanting to accept the guilt of having debt, but, if avoided, it can make it nearly impossible to get out of debt.

Open up a new Google or Microsoft Excel sheet and list out all of your debts. Start with the name of the creditor, interest rates, total balance, loan term length (if any), and the minimum amount due each payment. This will include student loans, credit cards, and any other type of debt owed.

3. Get Your Debt Number

Once you’ve made your debt tracker and taken the other steps, identify your total payoff number. This is crucial, as you will have a starting point and a clear goal that you are trying to achieve.

Prioritizing Your Debts

All debt is not created equal. It’s imperative to understand that there are different types of debt.

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1. Understand Bad and Good Debts

Bad debts are usually paying for things you want instead of always need. While there might be some emergencies that max out your credit cards, often times it’s excessive spending[1].

There are three main types of bad debt:

  • Credit Card Debt: The average American household owes over $16,000 in credit card debt!
  • Auto Loan Debt: According to CNBC , the average auto loan in the US is $30,032!
  • Consumer Loan Debt: Consumer loan debt isn’t as common as credit card and auto loan debt, but it’s still considered bad as interest rates are usually between 10-28%.

Good debt is identified as investments in your future. Here are three common types of good debt:

  • Student Loan Debt
  • Mortgage Loan
  • Business Loans

2. Decide Which Debt to Pay off First

Once you know each type of debt and their interest rates, you can begin to pay off debt quickly.

Focus on paying off bad debt first, regardless of if it is a credit card or auto loan. Start by paying off the loan with the highest interest rate first.

If you have several credit cards with different interest rates, you want to focus on the one with a higher APR. You will actually save more money by eliminating the card with the highest interest rate.

3. Don’t Pay the Minimum Amount

Paying the minimum amount digs you into a hole as interest rates will offset your payment. Even a small amount more than the minimum can help you pay off debt much faster.

Removing Obstacles to Pay off Debt Quickly

Creating a debt tracker and prioritizing a plan is simple, but avoiding temptation can be difficult.

1. Set a Reminder to Track Your Debt

“If you can’t measure it you can’t manage it.” -Peter Drucker

It’s so important to track your debt to ensure that you get it paid off quickly. Similar to working out and measuring your results, you need to track your debt constantly. Start with a weekly reminder, where you sign on and log your updated number. Did you increase, decrease, or stay the same?

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Regularly tracking your student loan balance can be incredibly motivating, as well. You will get a huge confidence boost each time you see your total debt amount decreases.

Set weekly and monthly goals so you can have short term wins and keep the momentum going.

2. Hide Your Credit Cards

If your biggest debt is credit cards, you need to eliminate temptation and remove them from your wallet.

Some people have gone to extreme measures by freezing their credit cards. Why? This would create an ice block around your card, which would require you to chip away at it slowly. This will give you time to think if it’s the best idea to buy that thing you’re about to buy.

3. Automate Everything

Willpower can be a huge downfall to paying off your debt. By automating your bills each month, you will ensure that willpower isn’t involved.

4. Plan Ahead

Getting out of debt will require some sacrifices, but with enough planning, you can make it work.

For example, if you know that you have a friend’s birthday or family dinner coming up, plan ahead for the costs. Whether you need to cut back on spending the week before, pick up a side job, or meet them after dinner, do what is needed.

5. Live Cheaply

The only way to get out of debt is to make some sacrifices on your spending habits. Find ways to save money each month so you can apply that amount to your outstanding debts. Here are some ways to save money each month:

  • Live with roommates
  • Cook dinners and prepare lunches for work instead of eating out
  • Cut cable and choose Netflix or Amazon Prime
  • Take public transit or bike to work

Finding the Lowest Interest Rates

The higher your interest rates, the harder (and longer) it will take you to pay off any debt.

If possible, you want to find ways to lower your interest rates to help get out of debt quickly. Here’s how you can get started:

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1. Maintain a High Credit Score

Your credit score will have a large impact on your ability to refinance your loans and receive a lower interest rate. If you have a low credit score, it’s unlikely you will be able to refinance your loans. Use these credit tips to increase and maintain an excellent score:

  • Never miss a payment
  • Don’t exceed 30% of your credit limit
  • Don’t sign up for more than one card at once
  • Limit hard inquires, like auto-loans and new credit cards
  • Monitor frequently with free credit-tracking software

2. Find Balance Transfer Offers

Start by opening a free account on credit.com. Credit.com offers you the chance to open a free account and see what type of balance transfer offers you can receive. Some of your existing credit cards might already have 0% or lower APR balance transfer offers available.

Contact each of your credit card providers to ask about lowering your rate for a one-time balance transfer offer[2].

If you do take advantage of this option, make sure that you use a balance transfer and not a cash advance. Cash advances have a ton of high interest fees (15-25%, depending on your credit card) and will only compound your debt problem.

How to Get Rid of Debt Forever

Setting up a plan, removing temptations, and getting the lowest interest rates is the first step to get out of debt.

1. Keep Monitoring and Adjusting

Once you have a plan, don’t get comfortable. Track your debt payoff plan and make the necessary adjustments when needed.

Monitor your credit scores with a free site like CreditKarma. The higher your credit score climbs, the more likely you will be to secure a new, lower-interest loan.

2. Earn More Money

There are only so many ways to save money. Instead of clipping another coupon or making sacrifices for your morning coffee, find ways to earn more money!

Think about it…it is much easier to find ways to earn an extra $1,000 per month than find $1,000 to cut from your budget.

Here are some examples of ways to earn more money:

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Talk to Your Boss

Have a conversation with your boss about current salary and/or commission rates. If you’re not satisfied or want a change, don’t be afraid to look around at other positions. Some of them might even have a student loan debt reimbursement plan!

Start a Side Hustle

This could be coaching students on the weekends, driving for Uber, or taking paid online surveys. There are tons of ways to make money outside your 9-5. Now that you have a clear plan to pay off your debts, you’ll be more motivated than ever to figure out creative new ways to earn money.

Build an Online Business

There are so many websites and blogs that earn money from ads, affiliates, and other online products. Find your niche and get started.

3. Celebrate Your Wins

As you progress in your debt payoff journey, don’t forget to celebrate your wins. You need to always reward yourself for the hard work and discipline that is required to get out of debt.

While you shouldn’t celebrate so big that it increases debt, make sure to factor in little rewards to keep you motivated.

4. Set New Financial Goals

Eventually, with a plan and these steps, you can rid yourself of your debt. Once you do, make sure to celebrate your monumental achievement, but don’t stop there.

Now, you can focus on acquiring wealth and increasing your net worth. Set new financial goals so you have a new target to aim toward. Here’s how to set financial goals and actually meet them.

These could be anything now that you are debt free! Think about where you want to travel, buying your first home, or saving for your future retirement. Just like before, make sure that your goals are specific, measurable, and achievable.

Conclusion

Congrats, you can now set a plan in motion to finally pay off your debt quickly (and hopefully forever)!

Remember, if you want to get out of debt quickly, it’s not always easy. Just like any big goal, there will be sacrifices, challenges, and problems to overcome.

More Tips on Getting out of Debt

Featured photo credit: Pepi Stojanovski via unsplash.com

Reference

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