Some misconceptions are that most millionaires inherit their wealth, have degrees from prestigious universities, or are savvy investors, which are just myths that could be keeping you from building wealth. You’ll be surprised to learn that most millionaires build their wealth independently and take calculated risks when considering investments.
Becoming a millionaire doesn’t necessarily mean that you need to have wealthy parents, defraud people, or be a genius. It requires intelligent financial decisions, discipline, practicing frugality, surrounding yourself with impactful people, and seeking investment advice when needed.
Practicing these habits consistently will help you achieve millionaire status with time.
Here are 13 simple things millionaires do that you can do, too.
They Invest Wisely
Millionaires know how to invest. You’ll find them with an investment portfolio featuring bonds, stocks, real estate, mutual funds, etc. Contrary to popular belief, you don’t need thousands of dollars to invest. Setting aside income in an investment account can help you build a diversified portfolio.
Don’t forget to invest in employer-sponsored retirement plans. The monthly contributions will grow, and your withdrawals will be tax-free at retirement.
Consider your risk tolerance and the time you’re willing to invest to get maximum returns.
Millionaires Look For Different Income Streams
Research shows that the average millionaire has seven income streams. While having a stable job may sound good on paper, relying solely on one income won’t help you attain a millionaire status.
You’ll find that most millionaires own a couple of businesses and are always looking for more ways to earn extra income. Common income streams include rental property, investments, private companies, dividends, royalties, and dividend income.
Millionaires Prioritize Their Health
Wealthy people prioritize their health. They consume healthy foods, exercise regularly, and work with personal trainers to stay fit. A Harvard study reveals that the richest in the U.S. have become huge healthcare buyers despite being healthier on average than the middle class. That shows the increasing need for millionaires to stay healthy and generate wealth.
Millionaires Live Below Their Means
The wealthy understand the need for delayed gratification. You won’t find them buying trendy clothes and phones, living in big mansions, or getting expensive luxury vehicles to please their friends. Good examples include John Caudwell, who buys his clothes off the rack.
Warren Buffet lives in the same home he purchased in 1958, and Mark Zuckerberg wears modest clothes. By delaying instant gratification, millionaires can build enough wealth to fund other financial goals.
Millionaires Invest in Real Estate
Did you know that 90% of millionaires achieved their status through owning real estate? The wealthy make more money in real estate than in any other investments combined. The rich invest in real estate as the value goes up over time. It provides passive cash flow, federal tax benefits, and the ability to refinance to purchase more income-generating properties.
If you’re considering getting into real estate, you can start by investing in real estate investment trusts before moving into rental properties or commercial real estate. Research and consult a financial expert for a suitable real estate investment.
Millionaires Invest in Their Personal Growth
The rich understand the importance of personal growth, and you’ll find them learning to sharpen their skills to stay competitive. You’ll find them reading books on personal development, their career, biographies, or material related to current events.
Some millionaires also write or watch the latest in business. They also invest in their wellbeing, ensuring that they get enough sleep and exercise to stay fit.
Millionaires Avoid Debt
While some financial advisors insist on having good debt, most millionaires know how to avoid debt. They view debt as an obstacle to building wealth, as you must spend a lot of money to offset personal loans or even credit card debt.
The rich often save and pay for an item in cash rather than take a loan. Eliminating or finding a way to reduce debt is one way to become a millionaire quickly.
Millionaires Seek Advice and Support
Millionaires like to stay informed about their money and investments. That’s why they seek advice to understand the cost of investments, where they currently are, and how much they stand to gain over time.
Working with a financial expert will help you determine the best investments and the path to help you become a millionaire.
Millionaires Learn From Their Failures
Millionaires are fearless in taking risks. To them, risks are an opportunity to grow. However, they also understand that sometimes things don’t always work out, and money may be lost. The rich embrace failure and learn from it. Henry Ford, Akio Morito, and Richard Branson had businesses that failed before becoming the renowned entrepreneurs we know today.
Millionaires Surround Themselves With Other Successful People
The rich don’t spend their time with every Tom, Dick, and Harry. You’ll find them around other successful people, as this allows them to make better investing decisions. Their fellow millionaires also motivate them and hold them accountable.
Millionaires Are Conscious About How They Spend Their Time
One outstanding aspect about millionaires is how they choose to spend their time. Every hour in their day counts, and you’ll never find them scrolling on social media for endless hours or chit-chatting on things that don’t add value.
You’ll find them reading, watching business-related news, exercising, sleeping, or meeting with other millionaires to discuss money matters.
They Exercise Frugality
Millionaires are disciplined in how they handle their finances. They understand that building and growing wealth entails spending less than they earn, budgeting, and saving a certain percentage monthly.
Millionaires Are Patient
The average millionaire is about 50 years old. It takes hard work, calculated risk-taking, intelligent financial decisions, and patience to achieve the millionaire status. The rich understand that wealth is never built overnight and that it takes endurance and resilience to achieve financial goals.
You have to be patient and watch your investments grow to build wealth. Don’t expect to fall into a whirlwind or be tricked into get-rich schemes to become a millionaire quickly. It all takes time and patience.
I’m Frugal: Here Are My Top 30 Frugal Living Tips to Save Money
I’m super frugal, and one of my passions is sharing my frugal living tips with everyone.
Here are some of my absolute favorite frugal tips to help you get started on your journey to frugal living.
I’m Frugal: Here Are My Top 30 Frugal Living Tips to Save Money
15 Things That Are No Longer Worth It Because of How Expensive They Have Become
Everything comes with a hefty price tag these days. From indulgences to essentials, the cost of living keeps rising. We used to consider certain items affordable options, but now they’ve become so expensive that they’re no longer worth it. Here are 15 things that have lost their affordability and make us wonder if they are worth it!
15 Things That Are No Longer Worth It Because of How Expensive They Have Become
28 Practical Ways Frugal People Save Lots of Money
Saving money doesn’t have to mean saying goodbye to life’s little indulgences. With a few smart tweaks, you can stash away cash for that dream vacation, rainy day fund, or splurge-worthy purchase without feeling like you’re on a constant budget patrol.
Think of it as a side hustle that pays off without the extra hours. Whether you’re looking to conquer debt or simply boost your bank account, these tips are guaranteed to put more money in your pocket, painlessly.
28 Practical Ways Frugal People Save Lots of Money
20 Poor Hacks Frugal People Use on a Fairly Regular Basis
Even if you’re not poor, you sometimes feel that way, and you probably have some tricks and tips for coping with that. In this article, we’ve compiled several poor hacks that people utilize at least a few times a month or even a week. It’s always good to share these hacks; we hope some of them help!
20 Poor Hacks Frugal People Use on a Fairly Regular Basis
10 Hard Financial Truths About Aging You Can’t Afford to Ignore
Getting older is a difficult thing to face. Unfortunately, it also comes with certain financial considerations that will affect your retirement planning. Here are 10 hard financial truths about aging that you can’t afford to ignore.
10 Hard Financial Truths About Aging You Can’t Afford to Ignore