Think like a millionaire
Do you have dreams of acquiring seven-figure wealth, but think your income isn't sufficient? Chris Hogan, the author of “Everyday Millionaires: How Ordinary People Built Extraordinary Wealth—and How You Can Too.” did research on 10,000 millionaires and found that a third of these never had a six-figure income. What they had in common was a focus on building their net worth, as well as their millionaire mindset.
Heres how you can tune in to the mindset and get on track for your seven-figure goals.
1. LIVE BELOW YOUR MEANS
This is the first step to building wealth, regardless of what your salary is. According to Hogans research, 94% of millionaires live below their means. Flash cars and designer clothes don't always reflect a person's financial situation - often the contrary. It doesn't make sense to have a £1,000 jacket of you have no money in the bank.
2. PRACTICE VALUE-BASED SPENDING
A millionaire mindset is one where our resources are being used wisely, without leaks. Track your spending for a month and take note of areas you're spending money that doesn't necessarily align with your values. Trimming these costs will lead to receiving more value for the money you spend as well as allowing for saving, investing and growing.
3. TAKE RESPONSIBILITY FOR YOUR FUTURE
Nearly 100% of the millionaires Hogan surveyed said that they believe they control their destiny. Have you thought about how to finance your future? Your retirement? Setting up a plan for long term savings is a good idea, and it is very motivating to work towards financial independence!
4. NEVER OVERSPEND FOR LIKES
Research indicates that 8 in 10 millennials overspend on food, travel or clothing so they can post it on Instagram. This habit will massively slow down your progress. Keep in mind that social media can create an image which is very far from reality. Unfollow people who trigger a feeling that you need to purchase to have a good or cool life. A break from social media can really help get yourself focused on building real wealth without temptations.
5. VALUE EXPERIENCES OVER THINGS
Most millionaires don't have a collector mindset, they have an experience and living life mindset. Acquiring clothes, gadgets and products will take you further away from your financial goals. Get into the habit of appreciating experiences and life itself rather than focusing on materialistic things.
6. CHOOSE A FINANCIAL ROLE MODEL
Instead of unhealthy comparison to celebrities or influencers, identify one or two financial role models who you can learn from. This might be someone whos really good at investing (I follow Nate O'Brien's YouTube videos on financial minimalism and investing most of ones income), paid off their debt in a short timeframe (I love WannaBe DebtFree on Instagram), or someone with high vibrating money energy like Amanda Frances. Learn and implement what resonates with you.
Based on article by HerMoney published 27 Feb 2019.