As I strive for financial independence, I have carefully studied the habits of self-made millionaires. It is clear that to attain financial success, I must fully embrace the actions and behaviors of those who have already achieved it. Adopting these habits has taken me from being over $20,000 in debt to building several investment portfolios that provide me with passive income. I accomplished this while working a nine-to-five with an average salary. I hope this encourages you to follow your dream. Adopt the habits of the person you want to be. If you want to be an entrepreneur, study what they do and do it!
Millionaires have a burning desire.
Millionaires don’t just hope and wish – they have a burning desire. The kind of desire Napoleon Hills describes in his book “Think and Grow Rich.”
“Every human being who reaches the age of understanding the purpose of money wishes for it. Wishing will not bring riches. But desiring riches with a state of mind that become an obsession, then planning definite ways and means to acquire riches, and backing those plans with persistence which does not recognize failure, will bring riches.”
Napoleon Hills
Millionaires know precisely what they want and are willing to work to obtain it. They understand that every failure is a learning experience that will lead them to success. They never quit in defeat, allowing them to create wealth.
Millionaires are dreamers.
They have vision and imagination that allow them to see realities in the mental and spiritual form before they happen. Elon Musk, the CEO of Tesla, is a vivid example of a dreamer. His open mind and imagination allowed him to pioneer technological innovations that would be passed on to generations.
Great success starts with a dream, an image of something. Then, it is transformed into an action that leads to success. This is the great virtue of the rich.
“All successful people, men, and women, are big dreamers. They imagine what their future could be, ideal in every respect, and then they work every day toward their distant vision. ”
Brian Tracy.
Millionaires have goals.
They understand that the more clarity they have about their wants, the faster they achieve them. As a result, they create clear goals accompanied by a detailed action plan and work on them daily. They prioritize their goals above any other activity and persist until they achieve them.
Wealthy people are constantly learning.
Millionaires always continue learning and improving. In a five-year study of millionaires’ habits by Tom Corley, he found that Seventy-one percent of millionaires said they often read self-help books, and 85% reported reading at least two books a month.
Reading is a characteristic of most millionaires as they always try to improve and learn from people who already have what they want. They also use other tools to learn. According to this study, 63% reported enjoying listening to audiobooks or podcasts while commuting to work.
They create their luck.
This isn’t the type of luck many people are accustomed to. We are talking about seeing opportunities others don’t see and working hard to make them happen. Many millionaires can solve problems for other people, creating much wealth. They figure out what the problem is, and they come up with creative solutions to solve it. In return, people pay them millions for their services. For instance, Pfizer created a solution to solve the coronavirus pandemic. They created a vaccine that helped reduce the propagation of the virus and saved many lives. In return, they made hefty profits.
They prioritize their health.
Millionaires understand that to reach their full potential; they need good health. They also want long life to build wealth and enjoy it. Good health saves them time and money, two of their most valuable assets.
“Good health is not something we can buy. However, it can be an extremely valuable savings account.”
Anne Wilson Schaef
Millionaires are frugal.
They are intentional with their money. Therefore, they live modestly and use their money to buy assets and build wealth. In Corley’s study, the save and invest participants became millionaires by their mid-30s.
“The Saver-Investors in my group reached their first $1 million around mid-to-late 30s and accumulated an average net worth of $3.3 million by mid-50s.”
This is an essential lesson for the rest of us. We must practice delayed gratification so that we reach long-term success. Spending every dollar will only keep us in the rat race for our entire lives, resulting in us having to sell our precious time for money.
They have multiple income streams.
Millionaires maximize their potential by creating multiple income streams. They tend to have seven income streams.
1. Capital Gains from Appreciated Assets
2. Dividend Income
3. Interest Payments
4. Rental Income
5. Business Income
6. Business Income
7. Royalties and Selling Rights
These income streams allow millionaires to make money in their sleep, which is the ultimate form of financial freedom. Most of these incomes are passive – require minimal effort to obtain.
You don’t need to have seven income streams to become wealthy, but aiming for more than one income stream is essential, so if you lose one income, the other will help you cover your expenses.
The four main paths to becoming a millionaire.
Lastly, I want to share with you the four main paths to becoming a millionaire according to Corley’s study, and I invite you to pick the one you will put into practice.
1. The Saver-Investors path
This is the easier of the four. This consists of saving and investing for a long time. If you choose this path, you must be persistent, have financial discipline, and be committed. In Corley’s five-year study of millionaires, 22% of the participants chose this path.
2. The Dreamers’ path
This consists of pursuing a dream you may have, such as a business, a YouTube channel, acting, or becoming an influencer. This path requires a lot of work before you can see any results. You may have to sacrifice vacation time and be very frugal with your spending as you must invest in your dream initially.
According to Corley, about 28% of the millionaires in his study were Dreamers. They have an average net worth of $7.4 million.
3. The Company Climbers’ path
This requires climbing the corporate ladder until you land a senior executive position. While this path is risky and may take decades, it can be rewarding. You will have to balance out the time it will take and all the hard work physically and emotionally against the possibility of becoming a millionaire.
In Corley’s study, 31% of participants fall into this category: “It took them an average of 22 years to accumulate a net worth of $3.4 million or more.”
4. The Virtuosos path
These are the millionaires with high expertise in what they do. Their specialized knowledge allows them to get paid high premiums for their services.
The virtuoso participant spent years of continuous study to reach advanced degrees. According to Corley, this group of millionaires took about 20 years to earn an average net worth of $4 million. These participants’ careers include the medical field, law, publicly held corporations, or small business owners.
