Financial Essentials

The Millionaire Mindset – 6 Traits

So you want to be a millionaire?

When you think of the word “millionaire” what is the first thing that comes to mind?

A McMansion? A Fancy car? Extravagant clothes?

You may be surprised to know that most “millionaires” are pretty average, they drive average cars, and live in average homes according to Dave Ramsey and Chris Hogan. They have been fortunate to do a number of studies that debunk the myth that most millionaires are driving C-Class Mercedes while living in 5000+ sq ft. homes.

There are 19 million high net worth millionaires out of 327 million in the United States. That is a only around 6% of the population or 6 out of every 100 people.

“6 out of every 100 people are millionaires”

So, what are they doing differently than the other 94%?

Did they inherit it?

Nah, just a fraction receive any type of inheritance.

Did they win the lottery?

Nope, only 0.0005% of folks are big ticket lottery winners each year and most end up broke or worse off than when they started.

Maybe their day job is making them hundreds of thousands of dollars per year?

Well… yes! and… no!

There are thousands of high income earners, think doctors and lawyers, who are on the hamster wheel. What comes in… goes right back out! But on the other end of the spectrum there are also those making modest incomes while holding that millionaire status.

So what ARE THOSE MILLIONAIRES DOING differently and how do we get there?

1. Delayed gratification – “48 hours later”

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They are really good on not splurging on impulse. They rather invest for the future, by creating and diversifying their income streams, than getting that quick consumer high right now.

They value and weigh their purchases serious. They think, “Does this add value to my life?” If you are on the verge of making a big purchase, stop and pause for 48 hours. If after 2 days you really want that item, go for it. Most of the time, you won’t miss it.

2. They don’t say – “I can’t afford that”

They don’t have a scarcity mindset. The individual with the millionaire mindset doesn’t say “I can’t afford that!” They say, “What do I need to do to afford that?” Do they ask for a raise? Create another income stream? Shake up their investment profiles? If they want something bad enough they figure out how to get it.

Remember, the world is awash with trillions of dollars. Like a river full of fish, you just need to figure out how to use a net!

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3. They read (A lot!)

What do a number of millionaires and even billionaires have in common?

They read!

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No, scrolling your Facebook news feed or your Instagram page doesn’t count.

They read resources that improve who they are, ever increasing their knowledge. Think – Biographies of other successful people (Steve Jobs, Bill Gates, Warren Buffet, Elon Musk, etc.), self help books (how to invest, healthy eating, exercise, etc.) or learning a new skill (coding, a new language, etc.)

“Most people won’t put in the time to get a knowledge advantage. To this day, I feel like if I put in enough time consuming all the information available, particularly with the inter(net) making it so readily available, I can get an advantage in any technology business.” – Mark Cuban (Billionaire)

4. They budget

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The millionaire mindset knows where their money is going. They are not afraid of looking at their bank accounts, because they already know what’s in there! They develop a budget and give their income a plan for success.

5. Multiple sources of income

The average millionaire doesn’t think in the “9 to 5” world. They are thinking in the 24/7 world. “How do I make money while I sleep, while I am on vacation, while I am not working?” They develop multiple streams of income. It may start out as a single source normal 9 to 5 job but it may quickly develop into…

  1. Real-estate investments – Either through Real-estate Investment Trusts (REITs) or directly owning real-estate that produces a cash flow (think apartments, commercial properties).
  2. Stocks/Bond – Investing and owning a piece of another other company (think Apple, Microsoft, Walmart, etc) and reaping the world of capital gains and dividends!
  3. Starting a business – Selling a product, either real and materialistic like consumer goods (clothing, TVs, gadgets) or a service, such as consulting (blogging, ha!).
  4. Royalty fees – Developing a logo, script, etc. that you allow to be used by others for a fee.

6. They do not view failure as the end

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They don’t see failure as the end of the road. It should be embraced as a learning opportunity to reset and do better the next time. They are persistent, they may start a business and fail, 1, 2, 10 times, but they keep trying.

“I knew that if I failed I wouldn’t regret that, but I knew the one thing I might regret is not trying.” – Jeff Bezos, Founder & CEO – Amazon.com

So Where Do You Stand?

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Were you able to check the box off on any of the above traits? Do you have the millionaire mindset? Let us know what other traits you think the average millionaire holds.

So what are your thoughts? We would love to hear from you! Leave a comment below or send us an email via our Contact Page.

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