9 Tips for Developing the Financial Habits of a Millionaire

There are around 35 million people who have or are millionaires. That means roughly one person in 20 is a millionaire. Even though the population numbers have gone up that’s still pretty incredible to think about — it’s possible to become a millionaire. Some entrepreneurs take chances which may or may not pay off. If it does running a business has enormous benefits! New business owners have the opportunity to bring in the dough as well. Learn how to start an online business and develop the financial habits of a millionaire in our free webinar training and keep reading to learn ways to build these habits today.

Focus on what you want

Psychology for Marketers recommends focusing on what you want and going for it! To follow through on what you want, you need to visualize your future and the success that will be yours.

Did you know that when you call somebody on the phone, they miss about 6 first seconds of what you say?
Or when you enter the aisle in a shop, you don’t notice the first meter of shelves on your side?

It’s just how our senses work. We need a bit of time to adjust and start noticing and registering things.

Let me come back to that in a bit.

Ask any rich and successful man, and they will tell you about the power of positive thinking and visualisation. They will tell you that you need to get clarity on what you want, and by doing so, you will start attracting all those things to your life.

But here is a little trick. When you do it, you need to frame your dreams in a positive way. If you frame it in a negative way, you’re going to attract the opposite.

Why? Because “don’t” and “not” are like those first 6 seconds of your call phone, or the first meter in a shop. They just don’t get noticed.

So if your goal is to stay employed in times of crisis and lay offs, you need to keep thinking “I want to keep my job”, rather than “I don’t want to lose my job”. With “don’t” being unnoticed, you wish turns into…” I want to lose my job” – and that’s what you’re going to attract.

Think big

Similar to focusing on what you want, CNBC recommends thinking big! It’s hard to create an online business if you don’t know what you want to do. Write down some of your goals and how you plan to get there. Think of new ideas and make a plan of action!

“Millionaires are creative,” says Keith Cameron Smith, author of “The Top 10 Distinctions Between Millionaires and the Middle Class.” “They spend time thinking about new ideas.”

While the masses talk about cars and movies, millionaires own the car companies and produce the movies. They understand that “ideas are the most valuable asset in the world,” Smith says.

Be frugal

If you do start bringing in money from your company, Business Insider says not to blow it. It’s easy to spend more money when you start making more. However, that could be your downfall. Cut back on spending and only spend on things you really need.

I've been studying the daily habits of the rich and poor since 2004. I've gathered an enormous amount of data on both groups.

Sixty-seven percent of the rich in my study said they were frugal. To them, frugal meant spending their money wisely. It meant buying quality items or services at bargain prices. Most of the wealthy in my study were raised by poor parents or middle-class parents who made a point of instilling in them good habits. Being frugal was one of those good habits they learned from their parents and that they took with them into their adult lives. Looking for value and quality makes you frugal.

Being frugal will not make you rich, but it does mean you will keep more of your money as your purchases are driven by quality and price.

Inc. adds to Business Insider’s thoughts by reminding us that over time unnecessary expenses add up. Before you spend money consider different stores you can get the same item for less. You should always be thinking of ways to cut back on your expenses.

There are a number of small ways that you can cut out those unnecessary expenses that will add up over time. For example, how much money have you spent on ATM withdrawal fees or transaction fees when sending or receiving funds electronically? There are a number of alternatives that don't include these fees.

On a larger scale, you should also create a monthly budget, so that you can examine where your money is going each month. You may quickly realize that you actually don't need that cable package that includes every channel. Instead, you can downgrade, or cut the cord entirely and use alternatives such as Hulu, Amazon, or Netflix. If a budget sounds too restrictive to you, try not having the money to budget! However, merely keeping track of all of your expenses will go a long way to helping you see what you are spending your assets on.

Success takes time

Think you’ll get rich fast? Think again. Some people do hit it big right from the beginning, but for many it takes time. Psychology for marketers reminds us that accomplishing a goal takes time, and so does becoming successful.

We all have big goals, and once we achieve them, we feel like accomplishing a great success. We feel pride, happy and satisfied.

But what about everything on the way? What about when you got a taxi without waiting? Or when you got upgraded to 1st class for free? Or when you won a few dollars in the lottery?

These are successes as well. There is no such a thing as a small success or big success. There are no successes that are worth celebrating and those that are not.

Every success if yours counts, all success are big and they all should be celebrated! The size doesn’t matter. Welcome small success and you’ll notice how your day turn into one big continuous success.

Use dreams to come up with goals

It all starts with a vision, and Awakening the Greatness Within says we can use dreams to create incredible goals. We love their analogy of dreams as a ladder — check it out below!

Before millionaires identify goals, they do something that Corley calls “dream setting”—they write down what their ideal life would look like, then use this script to create a bullet-point list of dreams. Goals are then built around each dream.

“Think of dreams as a ladder, and the rungs are your goals,” he says. “Ask yourself, ‘What would I need to do in order for each wish or dream to come true? Am I capable of performing those activities? And do I have the necessary skills and knowledge? Then take action.”

Don’t be afraid to be uncomfortable

We get it, sometimes it sucks being comfortable, but it’s true what they say about being uncomfortable. CNBC reminds us that we need to step outside our comfort zone to make something amazing happen. Have you been holding yourself back on creating a successful online business? Don’t be afraid to step outside your comfort zone!

If you want to earn more or get ahead in life, you have to be willing to step outside of your comfort zone.

This includes negotiating your salary. It's one of the simplest ways to boost your earning potential, since those who ask for more usually get it. Yet most people don't even try.

Sure, negotiation can be a tricky business, but not getting paid what you're worth could mean the difference between an average life and a rich one. After all, as self-made millionaire Grant Sabatier says, “The number one thing that will dictate your future earning potential and get you to $1 million the fastest is how much money you are being paid today.”

Law of “attraction”

The law of “attraction” is something we should all keep in mind. Entrepreneur explains more:

Activate the “law of attraction.” When you begin to save money and feel positive about your growing account, these emotions will imbue that money with an energy that will attract even more money into your life.

Don’t overspend

Want to stay rich? Even if you aren’t rich, if you're going to become a millionaire Business Insider says not to overspend. That’s easier said than done, right? Even if you tend to overspend there are ways to correct that. Implement good habits now and save up some money for your business and personal needs in the long run.

Self-made millionaires who made their millions by saving money were fanatics when it came to keeping their expenses as low as possible. Here are some of the strategies to follow:

• Don't spend more than 25% of your monthly net pay on housing. It doesn't matter if you own or rent.

• Don't spend more than 15% of your net monthly pay on food.

• Don't spend more than 10% of your monthly net pay on entertainment. This includes bars, movies, restaurants etc.

• Don't spend more than 5% of your monthly net pay on auto loans or auto leases.

• Don't spend more than 5% of your net annual pay on vacations.

• Never gamble. If you're going to gamble on the lottery, it comes out of your entertainment budget.

• Stay away from accumulating credit card debt. If you are using credit cards to meet your living and household expenses, by definition you are living above your means.

• Always invest your savings prudently. Never gamble your savings on get rich quick schemes. There's no such thing. The power of compounding can grow your savings and make you wealthy. Saving just $250 a month over 40 years will produce $500,362 at a 5% return.

• Max out your contributions to your company retirement plan. If the company matches your contributions, great. That's free money. Always take free money when you can get it.

Plan

Of course, no business started without a plan in place. As CNBC recommends, developing a strategy and sticking with it will help all of your hard work pay off.

“Those who maintain both a calendar and to-do list are 289 percent more likely to be millionaires, as compared with those who have no real set schedule,” writes Bell. He also found that successful people “document insights.”

Self-made billionaires Bill Gates and Richard Branson are devoted note-takers. “It doesn't matter how you record your notes — as long as you do,” says Branson. “When inspiration calls, you've got to capture it.”

Start your journey toward becoming a millionaire by following these suggestions and don’t forget to join us during our free webinar training to learn all about earning money online.

Sources: Entrepreneur, CNBC, Business Insider, Inc., Awaken the Greatness Within, Psychology for Marketers