7 Ways to Think Like a Millionaire

A lot of people think that becoming a millionaire is simply a matter of coming up with a great business idea or working your way to the top of a fortune 500 company. What they don’t realize is that many people who earn upwards of 100k per year are still living paycheck to paycheck.

The road to financial independence is not based entirely on your income, it has more to do with how you think about money. There are four key components to the millionaire mindset. Mastering them isn’t guaranteed to make you rich, but it is certainly going to get you on the right path.

It’s about a mindset—one that anyone can develop.

Have a Goal in Mind

Having a goal means you have motivation and meaning for your money. You’re not just saving because it’s the right thing to do — you’re saving for retirement, a newer car, a down payment on a house, or that trip you’ve always want to take. Millionaires have goals too, and this is what keeps them from spending frivolously on things that won’t help them get there.

I’m sure you’ve heard those horror stories of professional athletes who sign million-dollar contracts, then are somehow broke after they retire. It’s because they didn’t learn to manage their money well during their peak playing years, nor did they have a specific goal in mind for when they finished.

Think about where you want to be in 20-30 years. Do you want to be out of debt? Fund a retirement account? Pay for your children’s college education? You need to have goals so every action that you take today, is one that brings you closer to them. 

Think Before You Spend

Thinking before you spend is critical to a millionaire mindset. Of course, there are plenty of celebrity millionaires who blow their fortunes on private jets, island mansions, and excessive weddings, but the true millionaires, the ones that manage their money well, are always thinking about the implication each purchase has on their overall finances.

When considering any purchase {big or small!}, ask yourself these 3 questions:

  • Do I really need this?
  • Can I borrow this item from someone else?
  • Can I find it for less elsewhere?

I have gotten myself into more trouble because I swiped a credit card without thinking, when I really should have done my homework and scouted out other alternatives first. Patience is key!

Don’t Let Yourself Be Influenced by Fear

Think Like a Millionaire

“Buy low, sell high” is a common colloquialism used in reference to business. This can pretty accurately sum up nearly every piece of business advice you’ll find online.

Remember the economic collapse of 2008? Financial publications would have had you believe that anybody investing in the stock market during this time was simply a fool! And yet for the three years following the recession, the average annual gain was a whopping 11.9%

 “Be fearful when others are greedy, and be greedy when others are fearful.”

Don’t Be Wasteful

Always, always, always be thinking about how you can use old items in new ways. We throw away more food, more paper, and more perfectly usable items than necessary, and while I’m not advocating at all for clutter, you should consider if the item has any repurposing value at all before you toss it.

Here are some ideas:

  • Pair different pieces of clothing together to make new outfits
  • Shop from your pantry and bring new life to leftovers
  • Pass along older magazines to friends who might enjoy them
  • Turn shipping or shoe boxes into organizing containers for storage
  • Recycle junk envelopes and note-cards into scrap paper
  • Give away items you don’t use anymore to a local thrift store {just make sure everything is in good condition!}

Never Stop Learning

Millionaires are always learning about something new — whether it’s how to manage their wealth or increase it. I honestly believe that when you stop learning, you stop living. Life should be an education in itself.

While you don’t have to immerse yourself in the latest investment manual {that sounds incredibly boring to me too!}, you should be learning about money fairly regularly, especially if you want to be smart with it.

Believe in Your Success

Lastly, and probably the most important point to remember, is that millionaires believe they will be successful. It can take a long time to make {and save!} the money needed to establish an emergency fund, pay off all debt, fully fund a retirement account, and invest in other valuable assets, but it’s possible — for all of us.

Ways to Think Like a Millionaire

Be confident in your financial situation, no matter how big or small. Find those opportunities to save, and focus on spending smart. Believe you will make it, then work hard on getting there!

These 5 steps might not launch you or I into a million bucks right away, but they will help us start acting like one. Because half the battle of being frugal is thinking like you are frugal. And frugal living is a lifestyle and a mindset more than anything else.

Live Below Your Means

It doesn’t matter if you make $20 thousand per year or $200 thousand, it’s important that you live below your means. People have a natural tendency to start spending as soon as their income increases, but you have to save whatever money you can. Start today.

Even if you can only save $10 per month, it will be a start. Next time your income increases, whether it’s from a raise or one of your investments, try to add this money to your savings, instead of spending it upgrading your lifestyle.

The thrill of material possessions fades rather quickly. But one day, you’ll be presented with an opportunity. Maybe the perfect house for you to start a family in, or maybe a chance to invest in an up-and-coming business. When opportunity strikes, you want to make sure you have the financial resources to take advantage of it.

Thanks for reading! Please share this article if you enjoyed it.

Ayushi

Ayushi

Me the admin of this blog is a passionate blogger who loves writing article on technology, SEO and blogging niche. You can follow us on Twitter and Facebook.
Ayushi

Ayushi

Me the admin of this blog is a passionate blogger who loves writing article on technology, SEO and blogging niche. You can follow us on Twitter and Facebook.

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