2. Think Long-Term
It isn’t realistic to expect instant results. The wealthy know they have to stick to their goals, work at them and not get distracted. Some people think the wealthy have some secret know-how. Most of them have gone through a gradual learning process and learned the discipline of delayed gratification. They don’t spend money on impulse and have little interest in short-term pleasures while they build their wealth.
Warren Buffet believes that when you invest, you need to think long term. He uses a buy-and-hold strategy. Buffet says that if you make good investments and hold them over time, you will see the results after 10, 20 or 30 years. Using the baseball game as an example, he says you shouldn’t swing wildly. Instead, you should wait for the right pitch while ignoring the people shouting at you to take a swing.
Also, choosing the right investment within your area of expertise allows you to hit a home run. In his book, Millionaire Success Habits, Graziosi points out that you will face many distractions that won’t serve you. They won’t make you richer or happier. And they won’t allow you to improve your life and spend quality time with your family. So, you need to identify these distractions and avoid spending time on unnecessary activities.
Millionaires usually make sacrifices to get where they are. And they are prepared to make these sacrifices because they know what they want. So, when they achieve it, they enjoy their lives at a level that others only dream about.
3. Get Paid What You’re Worth
Grant Sabatier believes there is nothing more important to your future than getting paid what you’re worth. He went from having a couple of dollars in his bank account to a million in just five years. Sabatier says that many people don’t earn what they’re worth. He suggests finding out what other people in your industry with your expertise and years of experience are earning. Take that information to your boss when asking for a raise and emphasize what you’re bringing to the company.
If you’re a freelancer, one of the best ways to raise your revenue is to increase your rates. As you get better at what you do, you give more value, and your rates should go up. But it’s easier said than done to hike your rates. Uncertainly floods in and you imagine what happens if clients take their business elsewhere. Too often your fears prevent you from earning what you deserve.
Negotiating to get paid what you’re worth can be challenging. There will always be others who are prepared to work for less than you do for the same job. However, ignore them and focus on what you deliver that makes the amount you’re asking worth it. Stand firm on your fees once you’ve decided what they should be. The bottom line is, some clients can afford you and others can’t.
It’s also important to have an idea not only of how much you’re worth but also how much you spend. If you can figure out what you net every month, you can see whether your financial worth is staying the same, getting worse or improving. And once you have all the facts, you can make changes to grow your income.
4. Take Control of Your Money
Jaime Tardy, the author of, The Eventual Millionaire, says that the wealthy control their money rather than allowing it to control them. She interviewed over 150 millionaires for her book and compares them to a captain in control of a ship. Those who approach finances from the perspective of ignorance or fear are like a ship without a motor.
If you’re not a numbers person, you may avoid taking a close look at where you stand financially. Failing to pay attention may result in money slipping through your fingers, resulting in a slide into debt. You could make poor investments and end up at retirement age with not enough to retire on. But millionaires don’t make money by ignoring their balance sheets. They stay on top of their investments and have control over their money.
If you want to take control of your money, you may need to invest in some education and mentoring. Few people make money to invest money and tend to consume it rather than using it to create. You need to invest some of your money into vehicles that generate money. Compound interest can make all the difference, and you will experience this if you put some money into investments over a long period of time.
Millionaires have learned that some endeavors are more rewarding than others. You need to apply your skills in situations that offer the highest payback. Pursue what offers the potential for maximum returns, now and in the future. Self-made millionaires know how to invest their time and money in the right opportunities. Also, they know how to delegate activities that are unnecessary for them to others.
5. Learn How to Save
Despite their best efforts to budget, some people can’t get a handle on their spending. When you think about the lifestyles of the rich and famous, you probably imagine yachts and Lamborghinis. However, the truth is, many are wealthy because they know how to save money instead of spending it.
David Bach writes in his book, The Automatic Millionaire, that it’s not so much about the money you make as it is the money you keep. He says you don’t need to earn a great deal to start saving or investing. He believes anyone can find a way to set aside some of their income. But the key is to start saving as early as you can to reap the benefits of compound interest.
Suze Orman believes you need to make a mental shift and find joy in saving money instead of seeing it as a downer. She says you should enjoy saving and get as much satisfaction out of it as spending. She is a seriously wealthy woman, and she says she still enjoys saving. If you develop this mindset, she believes you won’t care about spending any more.
Others advise making budgeting a game and setting a new challenge every week. Millionaires often see earning and saving as a game. And it’s a game they want to win, so they put all their focus into it. They get great satisfaction when they see that needle moving upwards. So, remember, it’s all about getting rid of that negative perception about money.
6. Create Win-Win Relationships
The truth is, we are all dependent on others to a certain extent. Highly successful people acknowledge this and see it as a strength rather than weakness. And they know how to build win-win relationships. They are dedicated to cultivating the relationships that can help them reach their goals. As they expand their network, they connect with people and create opportunities.
Steve Siebold says you should play rich sports like tennis and golf like the wealthy. He says exposure to successful people can change your thinking about money. He says that wealthy parents know building contacts, even as early as high school, can make a difference between an average life and one filled with opportunities.
However, the idea of hanging out with the wealthy may sound elitist. But many millionaires are modest people. Most of them are simply people who have learned how to work with money, so understanding how they think can be enlightening. As you start to relate to them, your relationship circle will expand and new opportunities may present themselves.
Self-made millionaires know that creating a network of relationships gives them access to resources they wouldn’t have otherwise. If they don’t have the resources they need to transform a great idea into a reality, they will find someone who can help. And they will negotiate a win-win arrangement with them.
If they need more money, they will find investors. When they need talent, they know the right people. Wealthy people are so resourceful, the lack of resources isn’t a stumbling block.
7. Shift Your Mindset from Consumer to Producer
Most people are consumers and often afford their lifestyles by creating debt. This limits their options and enslaves them. But there are others who have a different mindset. They are the ones who figure out how they can be of value to others. These people sell products and services to the masses.
They have the drive to innovate, push boundaries and solve problems. If you look at self-made millionaires, they usually provide a valued product or service to millions of people. Everyone has the capacity to be creative and provide value to others. It just requires a shift in thinking. You don’t need to be stuck in a boring job you hate to make money you end up spending.
However, not everyone has to become an entrepreneur. You are a producer if what you are doing has worth to others. But most consumers are busy buying things rather than providing value for others. This change in mindset from consumer to producer will help you see more opportunities. You’ll get more ideas and become immune to advertising messages urging you to buy.
This means you may start thinking about the needs of consumers and how you can solve them. Also, you consider your talents and how you can monetize them. It may take time to change your mindset, use your skills and produce a valuable product or service. Sometimes it’s the process of learning a new skill.
Eventually, you’ll expand your social network and learn new financial habits. The learning curve may be steep, but it’s worth it. Not only will you increase your earning potential, but you’ll also have the satisfaction of contributing to the world.
8. Look for Value
Sometimes your frugal habits can jeopardize your progress. For example, you may buy a budget-priced pair of shoes instead of a more expensive pair that will last much longer. Or, you may keep fixing your old gas-guzzling car instead of buying an economical new one. Also, you may avoid spending money on that business course that could provide new opportunities for you.
But wealthy people know the frugal way isn’t always the best way. So, sometimes buying quality is the best way to use your money. Sometimes, people are so afraid to spend money because they’re afraid of not having it. You may rather clutch on to your money out of fear than spend it, even if it’s on something that could be valuable to you. Change your focus from looking at rock-bottom prices to looking for the best value.
Consider how what you pay today measures up with worth over time. The longer you finance something, the lower the cost of monthly payments but the more it costs over time. Buying something on this basis may be easier over the short term, but it gives you less to build savings with over the long term.
However, most millionaires understand the value of experiences. They have all the material things they could possibly want and realize that having more possessions doesn’t make them happier. They would rather do activities that change them as a person, whether it’s traveling, deep sea diving or setting up a charity.
9. Use Money as a Tool
Money is meant to be in motion. It should circulate to other people and back to you again. The only value that comes from saving it is that you’re storing it for later use. It doesn’t help to be miserly and hoard it up out of fear, though. However, it doesn’t help to splurge it unnecessarily and create debt, either.
You shouldn’t see money positively or negatively. It’s just a tool, so you should look at it logically without allowing emotions to get in your way. Like most people, you’ve probably grown up with the idea that saving money is good and spending is bad. Instead of thinking about saving or spending, rather think about using it.
Perhaps you’ve decided to go on a family vacation. You have the money, the trip fits into your plans, and you need some quality family time. But you should not feel guilty about spending money. It’s not the money that matters, but the outcome. Why should you feel bad when you use the money to make something worthwhile happen? You will create some memories that will last a lifetime.
People give more power to money than it deserves and allow it to control them. So, thinking of it as a tool changes your relationship with it. As you do with your tools, you need to take care of your money. Be sure to keep it organized and ready to use in a way that builds your net worth.
10. Yes, You Can Have it All
Steve Siebold believes you don’t have to choose between family and riches. He says the most common middle-class belief he has encountered is that you must choose between being a millionaire and having a happy family life. He mentions that five of the richest men in the world are fathers. Bill Gates, Warren Buffet, Jeff Bezos and Amancio Ortega all have more than one child.
Wealth doesn’t have to come at the expense of family time. Your family should not be your excuse, but your main motivation for getting rich. Wealth allows you to spend more time with them and offer them more opportunities. So, you need to find out how to use your time more efficiently to spend time with them while you’re building wealth.
Remember, you should be able to enjoy your wealth. The money is not the goal. So, understand what your goals are, and focus on them. However, some people work many hours every week and neglect their families in the process. And others spend so much time focusing on the needs of the family. they don’t have time for anything else. Finding the right balance will help you get wealthy and enjoy it.
The middle class often believes millionaires are workaholics who are so focused on making money, they have no time to enjoy life. But the truth is, having money gives you more control over all aspects of your life. In fact, wealth gives you the freedom to live life on your own terms.
These are the top 10 beliefs about money from self-made millionaires. By following them, you can change your views on money and create wealth. Whether you use one of them or all of them, you’ll have a healthy and wealthy attitude on finances.