Ever wondered what sets millionaires apart from the rest of us? It’s often simply the way they THINK about money. Here’s how to think like a millionaire!
Rich people stay rich by living like they’re broke; broke people stay broke by living like they’re rich.” – Anonymous
While I’m nowhere near millionaire status, I am always inspired by the stories of ordinary people who manage to work their way into a wealthy lifestyle. Some of them are small business owners, others are company CEO’s, but the one thing they all have in common is the millionaire mindset when it comes to managing their money.
Real millionaires–the ones who have earned it through hard work and determination–don’t spend their money on unnecessary things. They drive average cars, wear average clothes, and look for deals sometimes more than the rest of us. They are rich, instead of just looking rich, and keep more of their money in the bank rather than squandering it on flashy material things that have no real value. They’re smart, intentional, and a huge example to those of us who live on a much smaller income!
But instead of being jealous or envious of their wealth, we need to adopt their mindset as our own, and learn what we can from their success. Because the reality is, if you can manage the money you have right now well, you’ll be in a much better position when you are blessed with more.
Changing the way you think is the first place to start. Here are five ways to start thinking like a millionaire:
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.
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:
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!
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 re-purposing value at all before you toss it.
Here are some ideas:
Smart millionaires are resourceful and “make do” with what they have, because they know that saving money on these seemingly smaller items, will allow them to spend their hard-earned dollars on more important things.
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.
Some of my favorite money saving blogs are:
If you’re looking to dive into a few books, here is what I would recommend you start with:
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.
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.
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On Point! Think before you spend...when I really want something and see myself in it or with it...I lose my ability to think, but will work on it. Thank you so much. One love
It was a great idea and I really enjoy. It kind of motivate me how to behave like a millionaire. In the beginning, I didn't have any goals and just a guy who will spend the valuable time by watching video. Fortunately and thank to god, now I know the truth of myself what I want to be, I want to be a millionaire. I have been looking ideas from expertise and books to brighten my future and this post also inspire me the mindset for being millionaire. Really thanks
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I’ve done it and continue to do it. However, I will never be able to retire,not because I live extravagantly
This is all so true. People assume to be wealthy you have to flash what you have and that's not the case. Very nicely written post!
I absolutely LOVE this article!
To me, it ultimately comes down to the first and last points, setting goals, and believing in your success!
If you have a clear financial goal in mind, and you believe you can reach it, the rest will fall into place. Everything you do will have you thinking about your goal (if you truly believe in it), and you will make all the right decisions to help you get there!
Positive thinking creates positive action, and you can't go wrong with positive action;)
I am starting from zero at 55.
Huge and unexpected life changes , new job, shady business partner/loss of business and bankruptcy have my head spinning. Just trying to stay in my tiny little house at this point. No money or credit rating left to move. I find myself asking " How"?
You can live on cash, I've done it and continue to do it. However, I will never be able to retire,not because I live extravagantly, but because I only have a finite number of years left to work. My budget leaves me 100 a month for anything other than shelter, trans, housing. Putting 9% into my 401K from a 36k annual salary wont allow me to survive , so I will work until I drop.
Any advice on that?
Angie, I can't even begin to imagine the stress and worry you must feel -- I'm so sorry you are going through this right now! Whenever I find that there's nothing left in the budget to save, {even though we live as frugally as possible, like you}, that means I must try to bring in extra cash any way I can. I've do pet sitting jobs, sell some of my clutter, and try to earn rewards from sites like Ibotta, Swagbucks, etc to put more money in my pocket. It's never a huge amount, but every little bit helps! Praying for you. <3
Good luck Angie. You are blessed to have an income producing job! I will.be 54, am starting over as a single mom who now needs to find steady employment. I am usually the only one over 25 at the rare interview I get called for ( when they look at education amd experience instead of the dates). I don't get jobs that I am more qualified for, able to handle, or even closer to than others. I am now taking a class called.Getting Ahead in a Getting By World, I have high hopes. I worry I will lose my home ( its paid for) and can't even consider retirement ...without any income or savings at this point. I fear for the future for me,and worry on my kids behalf for theirs. I wish you the best!
Oops, sorry for the typos, using my tablet!
I've only just started being more resourceful and trying to think up new ways to use what I already have. Let me tell you, that has probably saved us at least $100 a month on groceries alone! I also completely agree that you must keep learning. If you think you know it all, you won't make it far. Great advice!
It's amazing what you can accomplish with a little creativity!
Great points Kayln. I'm believing in my success...I have to. That's why I'm still plugging away. I like your shameless plug! LOL!
These are great tips! I just love your blog. I recently launched my own blog at citygirlsavings.com, where we empower women to achieve financial independence while maintaining a fashionable lifestyle. We are already up and running and would love it if you checked us out sometime! Keep up the amazing work!
XO, CGS Team
http://citygirlsavings.com