This article was last updated on April 26, 2016
Let’s face it, you want to be a millionaire. I want to be a millionaire. We all want to be millionaires. There is enough room at the top to become one. So why are we not there and how can we get there?
Since we were born, we were taught a certain way of thinking. Maybe you were born to parents who had great jobs and taught you to save money. Maybe you were born to a single struggling parent and learned to get whatever job came your way and stay there and as long as you make just enough to hold you over to the next check, you’re good. Both ways have their few pros and lots of cons, but they are also average ways of thinking. As we can see, average won’t get us wealthy.
Add the fact that our educational system is corrupt and in disarray, and you’re being set up for an average lifestyle. High school doesn’t teach us anything about money management. College is set up to teach you to work for someone else and make them richer. Unless you take accounting or financing, you’re pretty much out of luck on the money management part.
Millionaires, especially self-made millionaires, have a different mindset than the average person. Their mind is just like the average persons. However, they look at life differently. While the average person is thinking short-term, millionaires are thinking long-term. Which brings us to the first difference between a millionaire and the average person.
How To Think Like A Millionaire
Almost 2 years ago, my great-grandmother passed away. She left behind a lot of things, but the most expensive thing was her house. It sits in a very nice neighborhood. Outside of a few small renovations, it was a great house. My grandmother, her daughter, wants to sell it. I have no say in the matter, but I did voice my opinion on just fixing up the things that need to be fixed and making it a buy-to-lease property. Of course, she refused. The house is valued at $100,000, but I think my grandmother can get a lot more than that in the long-term.
Millionaires look at the long-term. Yes, my grandmother can make somewhere around $100,000 in the short-term, but having a nice second or third income of $600-$900 a month is long-term thinking. In fact, if she would have rented it out, in just 15 years, she would have made $108,000- $162,000 (not calculating property taxes, repairs, upgrades, etc.). Always think long-term in business, investing, real estate, relationships, etc. 9 times out of 10 you’ll always have better value and profit this way.
Become The You That Can Reach A Million
If you sit around all day and watch Netflix then don’t expect to make a million dollars. If you sleep in late and party 24/7, don’t expect to make a million dollars. You have to be the person that will make a million dollars. This is easier said than done.
I want you to close your eyes and visualize yourself as a millionaire. How do you begin your day? What do you eat, drive, wear? Where do you live and how does your place look? Who is in your life, or not in your life? How healthy are you? Literally visualize every detail. Even the deodorant you use and the way you manage your money. Then start implementing those traits now.
For example, when I become a millionaire, I would wake up every morning and write in my gratitude journal, take 15 minutes for a quick news review, and do a small workout. I would then get dress and make sure I pay attention to details in my clothing and grooming. Then I head to my amazing kitchen where I fix a quick but healthy breakfast, then get started on work.
You also need to work on your values. Millionaires live by their values. This allows them to live their own lives and not someone else’s. Take a sheet of paper and write 20 values, then choose the top 5. And every day, find a way to live out those 5 values every day.
Remember: Be. Do. Have. Be the future ideal you now, do what they would do, and you’ll have what they have.
You have to be able to change with the times. A great example is Myspace. When Facebook came to the scene, it was something Myspace wasn’t: simple. You didn’t have to copy and paste codes to your profile on Facebook. What really killed Myspace was the fact it didn’t change with what society wanted. Facebook changed and adjusted to its users, which is why they are still going strong.
This goes with the above tip, you have to be able to adapt. You can’t be the party kid that wastes his money on booze and drugs and expect to make a million. You have to change and adjust to a lifestyle and personality that will help you make a million.
If you work at a dead-end job that pays OK, but you spend all of your time there, and you’re miserable, then change and adjust. If you are not where you want to in any area of your life then that should be motivation for you to change, adjust, and go to the next level.
Staying in your comfort zone is the best and quickest way to remain average. Millionaires understand that they have to take risks to grow. Of course, taking risks is uncomfortable, but that’s where we grow. Now, there is a huge difference in taking a calculated risk and just going in blind.
Any millionaire will research whatever they can before they jump into it. They know that we all tend to exaggerate the consequences, so this helps them really analyze the actual risk. It is kind of like taking a risk in investing but scared the company you invest in folds. And let’s just say that company is Apple. That is pretty exaggerated, right?
Don’t be scared to take calculated risks. When you don’t take risks, then you’ll remain average. My grandmother should have taken the risk of going with the long-term with the house.
Work For Profits
Average people work for time. They want X amount of dollars for Y amount of time. This may seem good, but why put a value on your time, especially a low value? Keep in mind that the person paying you for the work will want you to work as hard as possible for your allotted time. This means you’re doing more work than your paid to do, technically, but since you are being paid by the time it doesn’t matter.
Millionaires want to be paid in profits and by results. Try using this method instead and you’ll see a leap in your finances. The reason this works is because this will make you work harder to get the result as close to perfect possible.
Last November, I was hired by this small business to help better their store in multiple areas. The owner wanted to pay me $10/hour for no more than 30 hours/week for 3 months of work. That is a measly small amount, but most people will accept that. However, I asked to be paid by results and profits of my work. After going back and forward for about 10 minutes, he said yes (he was a terrible negotiator). After 3 months of work, if he didn’t see a 20% of sales, I would not get paid, but if he did, I get paid 20% of monthly profits until December 2016. Needless to say, I make about an extra $1500-1700 a month. Unfortunately, we had stopped working together 1 month ago (I think he finally realized the mistake in the deal from his side), but I still made double what I would have made, if not triple.
Education shouldn’t stop. Because someone is a doctor or a lawyer, that doesn’t make them intelligent. What makes someone intelligent is when they are well-read. They can speak multiple languages or know a ton about their industry. They know practical and everyday knowledge opposed to knowing just about law or medicine. They understand a wide range of subjects.
Millionaires like Tai Lopez, Alex Ikonn, and Tony Robbins all believe that reading is essential to success. Reading self-help books, psychological books, business, and financing books, etc. These sort of books, plus numerous more, will seriously improve your life mentally, physically, and financially.
Strive to read at least 1-3 books a month. A good book to start with is my personal favorite The Motivation Manifesto by Brendon Burchard.
The best way to make money is to give value to others. Here is a secret: people never part ways with their money unless something brings them value. Millionaires know this and exploit this incredible and amazing tip.
Think about the last thing you bought. Why did you buy it? Was it for you or someone else? Whatever the case, you bought it because it brought value to you somehow in some way.
Use this knowledge to increase your wealth. Want to run a business, then find a way to bring value to others. Don’t focus so much on making money, instead, focus on adding value. Adding a high-end fashion store to a middle-class or low-class won’t add value to anyone. You still have to be strategic to giving value. It would be pointless for me to give all of my readers a free e-book on handling periods when most of my readers are men.
Increase Your Net Worth
Strive to increase your net worth. Your net worth is how rich (or broke) you really are. You can have $1,000,000 but you’re $999,999 in debt, you’re net worth is $1. Millionaires are always finding ways to acquire more assets and fewer liabilities.
A liability would be something like debt, loan or a car. One thing most people don’t realize is that buying a new car is a liability. Once you drive off the lot, it will diminish in value dramatically. A mortgage can count as a liability and an asset, depending on the property. If you buy a run down house in a terrible neighborhood, I doubt anyone will buy it, but if you take a nice house in a great neighborhood and try to get interest fees as low as possible on your mortgage, then it becomes an asset.
A million dollars mean nothing if your net worth isn’t great. Your net worth is what makes you a millionaire, not how much cash you have in the bank. So take the time to add up how much your assets and liabilities are. the total of the two is your net worth.
Create Multiple Streams Of Income
Don’t just stop at one stream of income, you’ll never be wealthy. Most millionaires have at least seven different streams of income. That is a lot of dough coming in.
If you have a job, find a way to create extra income on the side. Just focus on creating one. Maybe you have a hobby that you’re really good at and people will pay for it. However, the best type of income is passive.
Millionaires focus on creating passive income. They make money while they sleep, literally. There are two types of income: passive income and active income. Active income is where you are the main reason for the income. You doing a job is active income. Passive income is when you basically do nothing, yet money rolls in. A few examples would be: hiring someone to do something for you (of course you’ll take a bigger profit), investing, writing a book and collecting the profits, etc.
Strive to create multiple streams of steady income.
Stop Wasting Your Time
Everyone loves to say that they wish they had more time. The funny thing is: we all have the same 24 hours in a day. If you want more time, wake up earlier, stop spending time watching your Netflix or sports, stop sleeping in, stop saying yes to everybody, stop going out, stop procrastinating, and numerous other excuses.
Millionaires plan their day the night before. They know what they’re going to do and when they’re going to do it. They wake up before everyone else to get stuff done distraction-free. Do you think they spend hours on social media and seeing how others are also wasting their life? No. I allow 5 mins of every hour I’m awake to check my Facebook, Twitter, SnapChat, and Instagram. I have an allotted time a day to implement my social media strategy on my accounts, but I am not uselessly scrolling.
Your time is literally money, and by the way, you manage it will determine if you’ll ever be a millionaire.
Leverage Your Strengths
Average people try to spend their time working on what they are weak at. Instead, millionaires focus on their strengths and hire someone to make up for their weaknesses. I suck at coding and have no interest in it, but I have a good friend who is the opposite. So I pay him a small amount to help me, and I save a huge amount of time on not having to learn. Win-win.
Except for essential things like your health, relationships, and parenthood, always leverage your strengths and forget the weaknesses. Again, this doesn’t apply to your health or relationships. You need to develop strength and remove weakness in your health and relationships.
If you’re good at marketing, but suck at selling, just hire someone who is good at selling. Of course, when you’re starting out, that may not be possible, but when it is possible, implement it.
Develop A Goal And Plan
Just saying you want to be rich is not a goal. Saying you want to be a millionaire by the time you’re 30 is. Now, start implementing a plan that will get you there.
Millionaires always have plans for their goals. One of my role models, Gary Vaynerchuk, has a plan on how he is going to buy the New York Jets. He even projects that he’ll buy it around his 60’s. Having the plan to meet a goal is essential to creating wealth.
I have a well-detailed plan to becoming a millionaire by 30. The plan is so specific that it goes like this: I have a daily plan and goal, weekly plan and goal, monthly plan and goal, quarter plan and goal, 6-month plan and goal, a yearly plan and goal, 3-year plan and goal, 5-year plan and goal, and then a 10-year plan and goal. And they’re all in sync. It kills me when I miss a day because that means I am a day behind.
Consistency, realism, planning, and determination are the keys to accomplishing any goal.
Be Humble But Confident
They say you can be either one or the other, but you can actually be both. Being humble is being able to show a modest or low estimate of one’s own importance. No matter where you go, never forget where you were. Most rich people don’t just get all that money and forget all the people that helped them get there. No matter how much money you have, don’t walk around and act like your better than anyone.
However, you need to be confident. Confidence is the ability to have 100% self-esteem and positivity in anything you do. Many people mix this up with arrogance. Arrogance is thinking you’re above everyone in the world, confidence is knowing no one is above you. You need the confidence to reach a million and keep going.
Richard Branson, a billionaire, said the number one most important way to become successful is by exercising. I realized how true this was when I really started to care about my health about 2-3 months ago. I have always been slightly above average in my health, but now that I took it to the next level, life is good.
Strive to conquer your health so you can conquer your life. I believe that the one thing you have almost total control over is your health. When you can control that, you can control your external life. It is proven that people who are healthier tend to be better off in life.
So say bye-bye to McDonald’s and the couch and say hello to whole grains, protein, etc. and the gym or the track. Plus, what’s the point in getting rich if you can’t enjoy it.
Look The Part
You have to look the part on your way to the top. We live in a world where your appearance is the one thing people remember the most and how they judge you. Hop over to our style and grooming section so you can look your best.
Even if you’re grabbing something from the store really quick or checking the mailbox, always strive to look attractive. You never know who you’ll meet.
I hope you found this article informative and hope you shift over to the millionaire mind. Pick up some financial books like Rich Dad, Poor Dad, Secrets of a Millionaires Mind and I Will Teach You To Be Rich. These books have seriously changed my life in the last 4 months.
If you like this article, please share and let us know in the comment section below. Also, if you have any more tips I left out, feel free to drop it in the comment section below.
Photo credit: randy stewart via flickr