There is a lot that we can learn from everyday millionaires. In fact, many millionaires today are self-made and didn’t become millionaires overnight. According to Thomas Corley, the rich have habits that have helped them become millionaires. In his book, “Change Your Habits, Change Your Life,” he argues that habits are the cause of happiness, poverty, relationships, stress, and yes, wealth. So what are these habits? Let’s dig in and find out the ten things we can learn about the habits of millionaires.
10 things we can learn from everyday millionaires
Below are 10 key things I think we can all learn and leverage from everyday millionaires.
1. Stay out of debt
Debt is pretty much the opposite of wealth. Everyday millionaires stay out of debt, especially credit card debt. Instead, they save up for what they want. And if they do get into debt, say for a house or student loans, they pay it back as soon as possible. Millionaires know that debt doesn’t lead to wealth and you can’t beat the system by racking up credit card bills.
2. Set goals
Setting daily goals is essential to completing not just tasks, but managing projects and even managing finances. Creating your own goals is one of the best ways to fulfill your dreams and accumulate wealth. It’s also a concept that many millionaires practice. Goals aren’t just about finding your dream job, but can also include things like setting aside a certain amount of money each month in savings or creating an emergency fund.
The best way to build your wealth is to let your money work for you. That’s exactly what investing is. Everyday millionaires invest their money, whether it’s in stocks, bonds, or exchange-traded funds. The best way to begin building wealth is to set aside a bit every month to put into an IRA or other investment account. You can even automate your investments so you don’t have to remember to do it every month and can focus on other things.
4. Have multiple revenue streams
On average, millionaires don’t just have one source of income, but several. There are a number of reasons why this is. For one, if you lose your job, you can have another income source to fall back on. It’s also good for when times get tough or if you find you need some extra cash for a major medical bill or other essential purchase.
5. Practice self-care
Everyday millionaires know that setting aside time to sleep, exercise, and think are essential to success. In his book, Corley says that some of the habits of millionaires include getting at least seven hours of sleep and exercising for at least 30 minutes a day. While these activities might seem obvious, one in three adults doesn’t actually get enough sleep. That makes it harder to focus during the day and can lead to making poor decisions.
6. Maximize tax deductions
Taxes are one of the things in life that are always there. Millionaires will often find ways to maximize tax deductions and limit their tax bills. This can include everything from tax-deductible investment accounts, charitable contributions, setting up college funds for their kids, and health savings accounts. Talk to a tax accountant to make sure you are taking all of the deductions that you qualify for.
7. Create a budget (and stick to it!)
Self-made millionaires know the importance of creating a budget and living within their means (or in some cases, below their means). While probably not every millionaire coupon clips, they do know the importance of keeping a budget.
8. Find a mentor
Finding a mentor is also essential to growing your wealth. It’s not just about having someone there to cheer you on. A good mentor will help you grow and teach you not just what to do, but what not to do. And they will keep you on track if you falter along the way.
Reading is among the best ways to learn. This is especially true if you’re starting your own business. Taking the time to read on a daily basis can help you work on your own self-improvement. And everyday millionaires don’t just read for leisure either. They also read books about things like how-tos, leadership, and biographies.
10. Practice gratitude
Last but not least, everyday millionaires are grateful for what they have and have a positive outlook on life. They practice having an abundance mindset. The key is to spend time each day practicing being grateful and focusing on your thoughts. We all have negative thoughts, but being aware of those thoughts and choosing to accept them instead of judging them can help us on our way to building wealth. It's the difference between having a poor vs a rich mindset.
There’s a lot we can learn from everyday millionaires. From building up good investing habits to reading and self-care, there is a lot that we can do in our lives to build ourselves up and create wealth. Becoming rich doesn’t happen overnight. Taking the time to build up small habits and improve ourselves can do a lot towards creating wealth and happiness in the long term!