How do most millionaire’s reach this glorified status?
By paying themselves first, saving, and being very disciplined. Do not confuse saving with investing. Saving money perhaps requires much more discipline than investing.
I have been managing finances for millionaires for my entire career. Here are some of the habits of the ultra-wealthy, that I have observed over the years.
- They work hard. Earning money and building wealth is hard work. Stop daydreaming about your future-work hard and make it happen.
- They stick to a budget. Their budgets are surely bigger than ours, but they have one. Create a budget for yourself to see where your money is going. Use my free budget worksheet to get started. Read my post on How to Budget Like a Millionaire.
- They pay themselves first. Before the rent, before utilities, put some funds away in your savings. You’ll thank yourself later.
- They do not spend frivolously. Do not go for that gorgeous pair of new shoes on payday. Just don’t. Even if they’re on sale. If you have a budget, you should be allocating some of your income to clothing expense. Don’t buy the shoes until your budget allows!
- They avoid debt. Instead of ‘paying’ interest, think about ‘earning’ interest–on your savings!
- They work smart. Ever heard of the Time Value of Money? This is the idea that a dollar today is worth more in the future. You should be putting your savings in an interest-bearing (or investment) account. See my post on How to Invest in 7 Easy Steps (for Beginners).
- They give back. I know, I know, the idea is to become wealthy–and I’m telling you to give some away? Do not be greedy. Be generous. You will feel rewarded in many ways.
Have you been as disciplined as the ultra-wealthy?
I try to be, but I sometimes fail. I’m human. To stay disciplined, it helps me to write things down. Write down your goals and chart your progress. What helps you stay on track with your savings goals?
Grab my free debt payoff worksheet to help you reach your savings goals even faster! Don’t forget to Subscribe on the right margin of this page! I’m really glad you’re here!