Why anyone wants to be a millionaire is obvious. Besides various personal reasons, millionaires hold huge control over economic resources. The most powerful and prominent people often rank among them. Further, their total amount of money can equal those held by a larger number of poor people. But why your friend is a millionaire and you’re not is a question more often asked.
Adapted from Rhett Power’s 10 Steps to becoming a self made millionaire, check out the simple infographic we created that lists these 10 attributes of self-made millionaires:
Have you been asking why you seem destined for a life of financial struggle? While others make it look so easy to get out of debt and rake in millions?
No matter how hard you’re working, financial freedom seems elusive. This leads many to think some are just lucky. So we helplessly leave our situation to fate.
Unless you’ve inherited big or won the lottery, it indeed takes great efforts to become a self-made millionaire.
Here are 10 attributes most, if not all self-made millionaires have which you also must adopt if you are to count yourself among them and how to achieve these:
They’re millionaires but often, don’t act or even look like one
How many times have you been fooled into thinking that that guy wearing shorts and shirt has less money than the one wearing coat and tie?
True, looks matter. But it’s also true not to judge a book by its cover.
Self-made millionaires don’t live like there’s no tomorrow. That’s because they know their values and are firm about them. They know how to delay gratification. They also don’t cave into the pressures of making instant wealth illegally. They see the value in saving.
To do this: Practice self-discipline. Starting early and avoiding debts are just some habits millionaires cultivate. Be patient and humble. Accordingly, stop making excuses. Every justification you make is only a step back towards your goal.
They practice frugality
It’s one thing to be frugal and another to be a cheapskate. Likewise, it’s one thing to be wise about what you buy versus avoiding paying fair value for a product or service.
Self-made millionaires belong to the former.
To do this: Be prudent about the things you buy. Just because you have enough money to buy something doesn’t mean it’s worth it. Practice frugality and buy sparingly. If possible, buy only what you really need, not want.
Again, frugality doesn’t make self-made millionaires selfish.
If any, they adopt smart financial strategies by giving back to charity. Aside from paying it forward, self-made millionaires are able to cut back on taxes by contributing to charity.
To do this: Be wise even on where your philanthropic aid goes. Even non-government institutions and churches issue receipts nowadays for any contributions received so you can be assured they’re credible while you enjoy tax incentives.
Self-made millionaires don’t see having lots of money as the end in itself. They see it as a tool to something even more positive. They aim high and think long-term by placing their money in high-return investments.
Likewise, they’re not afraid to take the necessary risks along the way.
To do this: Learn the basics of financial management. If possible, have a trusted advisor who can recommend smart investments for you. Have a concrete, detailed plan of where your money goes. Allocate every month accordingly. As they say, don’t just think about working hard to make more money. Rather, think hard to make money work for YOU.
They do more to earn and save more
They conquer their fears. If they have to, they just dive in and fake it till they make it.
To do this: Avoid complacency. Don’t just settle to avoid negative results like shame or debts. Embrace risks and uncertainty. The more comfortable you are with the unknown, the more flexible you become. Learn to step away from the norm. Avoid doing things just because others do them. See challenges as something to manage rather than something to escape from.
They focus on themselves as much as money
For them, developing their skills and being richer are inseparable. They never stop learning.
To do this: Leave your comfort zone. Explore new things to unleash your hidden skills and learn new ones. For instance, take your negotiation skills to the next level, research on potential investments and ways to earn more. Connect with rich, successful people. Make them your mentors. Likewise, don’t be afraid to seek help when needed.
They have multiple jobs
Self-made millionaires will not stop and settle at one job that simply make ends meet. They do whatever they can to earn more and save more.
To do this: Aim high. Have a ‘’can do’’ attitude and ‘’work hard’’ mindset. Count possibilities, not problems. Self-made millionaires (especially entrepreneurs) look for problems to solve. In looking for more ways to earn more, break down your goals into smaller, more realistic, achievable ones.
They marry someone alike
They don’t necessarily marry someone equally rich—just someone who shares the same values and goals as them. Someone who is similarly frugal, open-minded, a risk taker like them. In the end, 2 heads are indeed better than one.
To do this: look for a partner who values money the same way you do. Observe their spending habits, their long-term views on investing and saving money. Do they think like your average ‘’middle class’’? Or something more? You may be surprised that a lot of us have been brought up or educated the wrong way about money, making us fear or even dislike money. Some of us may think having too much of it is evil or greedy.
They know what they want and plan the specifics of where the money goes
We spend endless hours worrying or grumbling about financial woes. But we only spend around 2-3 hours monthly thinking how to actually improve them.
By contrast, the average self-made millionaire spends 20-30 hours monthly just studying and planning his finances. They are clear on where their earnings go.
To do this: Study financial techniques and planning. Spend time each day or at least once a week to organize your finances.
They start their kids young
Self-made millionaires understand the value of starting young. They train their children to work hard, save and even invest at an early age. They don’t easily give in to their whims so that their kids will know the importance of being frugal, patient, humble, organized and self-disciplined.
To do this: Recognize that even as kids, your children have financial potential. Train them to have the right attitude about money. Have them handle their finances and allow them opportunities to realize they have to work hard for money and that money doesn’t just come from you or sheer luck. Set good examples by saving and investing.
Ultimately, the goal to being a self-made millionaire is not to reach a certain amount of money. Money is just the by-product. It’s reaching a certain amount of financial freedom. You’re free from the bonds of always worrying over money matters. You’re free to make your own choices and do what you want.
In the process, these attributes help you be the person you want to be. They develop your courage, character and attitude—and are not just about earning your first million.