Do You Actually Have a Millionaire Mindset? Let's Find Out
Do you know that it also takes specific mental energy to make it to millionaire status? You've probably heard this, but a reminder about millionaire m...
You know the recipe for becoming a millionaire — invest early and consistently. Make savings a priority.
But there's more to a millionaire mindset than doggedly saving over time. You might have already read about the millionaire mindset and tried to emulate it. It doesn't hurt to repeat these reminders, particularly because we can all change for the better. Especially when we're working toward specific goals like big money goals.
Here's what scholars, writers and experts have found out about the millionaire mindset.
They Have Confidence in Being Wealthy
Millionaires have self-confidence. They believe they deserve to be wealthy. In fact, they've never given it any other thought. Whereas, people destined to be poor or middle class believe it's "luck," or an inheritance, or the lottery, has something to do with it.
Wealthy people never consider any other way to be. Furthermore, they already know they're worth millions, that nobody else has their unique skills and talents.
Silence that inner Debbie Downer. Henry Ford famously said, "If you think you can or think you can't, either way — you're right." If you make excuses constantly or doubt yourself more than you should, you'll never be wealthy.
The wealthy look for opportunities everywhere. The next business idea, then next opportunity to invest in real estate — whatever it is, they never let themselves think small.
They Think Outside Steady Paycheck Box
There's no two ways about it: Average people settle for a steady paycheck, while the wealthy amass wealth through their businesses. They put their work into businesses — not punching a clock — with discipline.
Steve Siebold, author of "How Rich People Think," spent decades studying the world’s wealthiest people, says the rich are typically self-employed. Average people tend to settle for steadier situations.
His book says that a job, promoted continually by society as the "safest" way to wealth, actually isn't.
The Wealthy Break Through Boundaries
Did you always think that your class valedictorian or salutatorian would make millions? Well, kind of. However, a Boston University study that followed valedictorians and salutatorians into adulthood found that they did all the "right things" — they graduated from college with a high GPA, earned graduate degrees and top-tier professional jobs.
However, none of these bright stars actually changed the world. Good at following directions, these individuals did everything one "should" do but don't necessarily make the impact or break through boundaries that the ultra-wealthy do.
They Might Eat an Elephant One Bite at a Time
While some millionaires don't have specific money goals — for some, it just happened — those who do break it down, chunk by chunk.
Let's say you have a goal to reach $1,000,000 over the course of five years.
There are 52 weeks per year, or 260 weeks in five years. You can calculate that you'd need to earn $3,846 per week in order to earn $1,000,000 per year.
Broken down, even more, that's $96.15 per hour.
Do you have a skill where you could charge $96.15 per hour?
Sure, you do.
Or, another way: Start with a way to generate $10, then multiply that 100,000 times. You can come up with something you can sell for $10, can't you? Sure, everyone can. The thing is, you don't have to reinvent the wheel to do it, either. Why can't you sell scarves, bake cookies, mow lawns? You just have to replicate your hidden talents on a massive scale. Increase your rates after you sell that $10 product, so you're sitting on a $100 product. Sell it to the masses, and you have your $1 million.
They Don't Buy Six Yachts in One Year
Contrary to popular belief, most millionaires look exactly like the guy next door with his own concrete business. Have you ever read the book "The Millionaire Next Door?" If not, do it.
Here's what the authors found in this age-old book. The millionaire next door spends less than he earns, avoids buying status objects or a status lifestyle, takes financial risk if it's worth the reward and rarely inherits their wealth.
Most people buying six yachts in one year aren't rich, they're just trying to spend to keep up with their ever-encroaching lifestyle. Millionaires never live outside their means. Ever. Period.
They Have Multiple Sources of Income
Tom Corley, author of "Rich Habits, Poor Habits," discovered that most millionaires seem to have three streams of income. This way, they can ensure that they're making money through several streams, instead of expecting all your eggs to hatch. In this way, you're insured against loss.
They Prioritize Time, Not Necessarily Money
Instead of money, they prioritize time. They're just making money while they're out golfing or enjoying life.
This allows them to put their social relationships first, such as with spouses or friends. On the other hand, people who value work instead of time work more hours. People who value time actually make more money than those who worship money.
They’re more likely to pursue careers they love, with less stress and more productivity.
What Do All Wealthy People Have in Common?
They don't believe in working for money.
Weird, huh? Instead, the average person believes in working for money.
The wealthy look for jobs with not the greatest salary potential, but the greatest fulfillment opportunities.
Even highly disciplined individuals may feel exhausted by how hard it can seem to get to that first $1 million with the right "formula." The reality is that it can still take a while to make it there.
However, working on pieces of your millionaire mindset can help things come together.