What would you do if you have a million dollars?
Clear your debt? To invest them? Or to donate them? Maybe all three together?
All of us want to be a millionaire, but have we thought about what goes into the mind of a millionaire?
Other than knowing some financial management tips, the mindset plays an important role.
What Is Millionaire Mindset?
In millionaires' mindset principles, they take ownership in many things, especially when it comes to their life choices, they believe they are in control of the things they want. Hence this makes them a doer, a leader, an extraordinaire.
Take Elon Musk as an example, as quoted by Tim Urban, the difference between how Musk and most people think is like how a cook and a chef work.
A chef drills down from the selection of raw ingredients to create dishes for specific types of events, whereas a cook works off on a readily available recipe, tried and tested by someone out there.
So how do you get a millionaire mentality?
Secrets To Millionaire Mindset Principles
1. Understand What Wealth Means To You
Why do you want to be a millionaire?
Do you want it so badly that you are willing to sacrifice part of your life to achieve it?
Having a clear vision on your goal can help to push you further on your journey when times get tough or you only get to sleep for 4 hours throughout the year, you will likely to pull through it anyways.
A student with a millionaire mindset will make use of every opportunity to build her foundation. While her peers might be enjoying their college life or drinking away, she will be studying and honing her skills, making every effort to learn from and build connections with her seniors or the professionals whom she met.
Her peers might tease her or she might feel alone at times, but she understands why she is willing to give up part of her social life and believe that her visions will work out, she believes that time will show the results of her hard work.
Which brings me to my next point,
2. Understand That Human Attention Is A Finite Resource - And How To Use It To Its Fullest
Do you know that the average person will spend a staggering 78,000 hours in their life to watch T.V?
By contrast, self-made millionaires spend about 10.5 hours a month, approximately about 10,080 hours in their life just for investment planning.
Distractions may come in various forms and we are brainwashed to give in immediately.
Whether it is the notifications on our phone or incoming emails, they always appear to be “important”, but after attending to those “important” needs, we often feel drained and tired, which cuts to the question, are these needs worth our attention?
A person with a millionaire mindset would know how to utilize her attention to the fullest, picking her tasks wisely. She understands that the amount of attention spent is equivalent to the quality of the result produced.
With being a millionaire as a goal, naturally, she would prioritize her attention on managing her finances, which led us to the next point.
3. In Control Of Your Personal Finances
The formula of growing wealth is simple, your total expenses should be less than your total income, the greater the difference, the more wealth you shall accumulate.
In other words, spend only within your earning capability, don’t spend on things that you can’t afford.
Equipped with the millionaire mindset principles, once you start to receive paycheck monthly, you should know your spending boundaries.
Live with your parents a few years after college, don’t splurge on trendy apartments, save up by
dining at home instead of eating out with your colleagues, choose cheaper transportation than buying a car.
These unpopular choices might make you look odd among your peers, but you will be pleasantly surprised at how much you can save up in 5 years.
By spending on the coolest tech or the fanciest trendy clothing piece to impress others is not gaining you any value on your journey to be a millionaire. Your goal is to be rich, not look rich.
The bottom line is to consciously find ways to improve your finances or to save up as much as you can, not waiting for choices to present themselves in front of you or giving excuses like “No choice, I have to spend xxx because of xxx”, that’s what separates a millionaire and a mediocre.
Read more on Financial Management Tips: 10 Practical And Easy Ways To Save Money
4. Get Comfortable Being Uncomfortable
When you start to make choices that are not in favour of many, as mentioned above, you are bound to stand out from the rest, so prepare yourself to be uncomfortable in the journey of becoming a millionaire.
“If you want to change the fruit, you have to change the roots”. T. Harv Ecker Author of “Secrets Of A Millionaire Mind”.
Our mind works in a way where it keeps our survival as the number one priority.
When we face anything that endangers or looks endangering to us, our mind automatically pulls the emergency brake, but that hinders us from growing.
Say you have to present your idea for a very important client, that obviously brings you discomfort, which explains why you dreaded it because your brain is tugging on the brake.
Or you know you have to approach someone you look up to, whether it is to ask for collaboration or financial management tips, there is always the fear of being rejected at the back of your mind, which brings you discomfort and stops you from doing so.
But did you realize that you always remember the mistakes or milestones that you have made, especially under pressure?
The fastest way to grow or to learn from our mistakes is to put ourselves out there, sometimes being uncomfortable.
Rather than avoiding discomfort, learn to embrace it as a stepping stone to becoming a millionaire.
5. Invest On Yourself
One of the basics in the millionaire mindset principles is - to invest in yourself.
Rather than relying on someone, millionaires are firm believers that they are the creator of their life.
That’s why they see the importance of investing in themselves, constantly pursuing personal growth and development.
It is easy to lay on the sofa, binging on television after a long day of work. But a person with a millionaire mindset will understand that such actions are not getting her anywhere close to her vision.
To be a millionaire, she must have the skills to make millions, and that skill comes in many forms.
How to ask for a raise/promotion, how to start a side business, how to invest in stocks, how to be financial literate, where to find good financial management tips, all these are just some common methods to accumulate wealth, and yet they have so much to learn about.
Knowledge is power, that’s why millionaires like Warren Buffett reads every day, and that’s why you should too.
6. Be Solution-Oriented
What differentiates a millionaire and a mediocre is how they see a problem.
A millionaire focuses on finding a solution whereas an average person finds the blame.
When deciding on a business, many people succumb to the thought of which business is more profitable, but with a millionaire mindset, one should be thinking on what solution I can provide to society's problem.
Because millionaires know that solutions are equivalent to value, and money revolves around value.
People who have the millionaire mindset principles see problems as a blessing in disguise, they view it as an opportunity to make money from it, even though they may fail when trying to solve the problem, they take it as a lesson learnt and improve from their mistake.
7. Surround Yourself With Like-Minded People
If your friends are avid gamers, it's hard for you not to know a thing or two about gaming.
If your peers are millionaires, does that mean you will get rich too? No, but you’ll get to see why they become millionaires, and you’ll be tempted to be like them.
Having friends who share the millionaire mindset principles as you keep your focus on track. Whenever meeting them, you’ll be reminded of your vision, they keep you accountable for your actions and decisions along your journey.
To be with someone like-minded motivates you, at the same time challenges you to be better. There will always be an unspoken battle between both of you on who will achieve their goal first, which indirectly could bring the best out of you.
They could be your competitors, your colleagues, your classmates or your neighbours, appreciate their presence in your life and utilize their influence on you to push you further on your journey to becoming a millionaire.
8. Be Willing To Give Rather Than Take
According to Elon Musk, you need to work at least 80 hours a week to change the world, that is more than half of an average man’s working hours.
Are you prepared for that?
There’s no shortcut to becoming a millionaire (legally), you will have to work harder than most people out there. Most importantly, you must know how to bring value to the table.
Millionaires understand that money revolves around value, the more value you can create for others, the more profit you can generate.
Take Tesla as an example, their value is to provide transportation options with sustainable energy, solving the issue of fossil fuel exhaustion.
Or Dave Ramsey, he brings value by providing good financial management tips to the public, helping people in financial difficulties.
What value can you bring to others?
It could in the form of a product, a service, a skill set or time. People with high income are usually valuable or irreplaceable in their companies or industries because they can provide value that many are not able to.
Take some time to through your skill sets, what value can you provide to the world?
9. Take Risk
Risk often gives people the impression of danger or fear, which is caused by the lack of knowledge on a particular matter.
While many people are content with living in their comfort zone, a person with a millionaire mindset knows when to strike or take risks. They overcome their fear by educating themselves on the choices they make whereas most people submit to their fears.
An investor who follows the millionaire mindset principles will always do her homework prior to investing.
She will only trust her analysis and won’t let anyone pressure her into an investment decision because she knows where her hard-earned money comes from. She takes her time to observe the market and seek advice from professionals, digest them thoroughly with tons and tons of research, educating herself with the different methods of investment, platforms available, fees charges, business models, jargons, then only make her first move.
On the journey to be a millionaire, it is common to face failures, sometimes we might face more failures than success. But these failures are what strengthen us and keep us grounded in the moments of success.
Hence, don’t be afraid to take risks if you have backed yourself up with research and study. People called it a risk because they don’t understand it well as you do.
Books To Learn More About The Millionaire Mindset Principles
As part of the millionaire mindset which is to constantly educate yourself, here are a few books which go in-depth on about the millionaires’ mindset principles:
A. The Richest Man In Babylon, by George S Clason
It covers the fundamentals of gaining wealth, he stresses the importance of paying yourself first before anything else. As well as knowing to strike when an opportunity comes around.
B. Rich Dad Poor Dad, by Robert Kiyosaki
It explains heavily on assets and liabilities. How the rich become richer by focusing their attention on their assets instead of income, and the importance of financial literacy because knowledge is power.
C. The Secret of Millionaire Mindset, by T. Harv Ecker
It touches on the mentality of the rich. The mindset of millionaires believes they are the creator of their life, whereas the poor believe that life happens to me. Which is why many people play the lottery, with the wishful thinking that luck might fall upon me.
D. The Snowball: Warren Buffett & The Business Of Life, by Alice Schroeder
It describes the importance of compounding income, the theory on how money can gain momentum and grow bigger. And how to use that to your advantage when it comes to investing.
Online Courses To Learn About Financial Management
Knowing how to manage your finances is the foundation to be a millionaire, here are some platforms that give good financial management tips that may help you in the future.
A. Money Smart
MoneySmart is a platform that compares different finance products for your needs. Whether it is finding the right house loan or credit card, they have the details on their website.
Udemy is a great place to learn, almost anything! From how the economy works to how the stock market works, you can educate yourself at your own pace and time.
Do You Have A Millionaire Mindset?
That should be something to reflect upon yourself, from time to time.
Rome wasn’t built in a day, the same goes to wealth.
Great fortune takes time and effort to build up, the key is to think long term. With the millionaire mindset principles in hand, be sure to navigate your way wisely in your journey to becoming a millionaire. Stay strong and hustle hard!
Comment down below on any interesting tips to becoming a millionaire, we would like to hear from you!