Many people wonder what makes millionaires so successful. Do they just have great jobs and make more money than everyone else? Or do they have millionaire success habits that help them become the money-rich people they are? In this article, we are going to look at the advice of real-life millionaires and even billionaires and find out what lifestyle habits they have which enabled them to reach and sustain financial freedom.
Millionaire success habits
Enjoy saving money
Suzy Ormand, the well-known financial expert who regularly appeared on the Oprah Show, says the first thing you need to do is adopt the mindset of enjoying saving money. The obvious question then is “but when do I enjoy spending it?” Well her response is that if you start enjoying the process of saving money, you don’t care about spending money anymore.
Invest in yourself
Before you splurge on a holiday or a new television, consider what you could do with the money that brings more value to your life. Warren Buffet, the world-famous self-made billionaire, says that the best investment you can make is investing in yourself. He believes that everyone has potential that they haven’t used yet and that nobody can take away an investment you’ve made in yourself.
Use the 50-30-20 rule
This involved dividing your money into three categories. The first category is the 50% one and this is allocated to your monthly living expenses like rent, groceries and transportation. The next is 30% and this you should use for your entertainment and anything that you enjoy – from shopping to your hobbies. The final 20% of your money should go straight into your bank. Grant Cardone, a self-made millionaire advises that you should put your money into secured, untouchable accounts that you never use for anything – not even emergencies.
Buy in bulk
Another lifestyle habit that self-made millionaires have is buying in bulk if you see a great deal on something that you use regularly. Mark Curbane says that you’re “better off buying two years’ worth of toothpaste when it’s on 50% discount” as there is an immediate return on your money.
To save big, start small
It’s often difficult to see how forgoing your daily latte will make a difference in the end. But according to Chris Reining who created a $1 million portfolio before he turned 35, the key to making big money is starting by saving on the small money. Creating big savings like downsizing your house or halving your income can often feel too drastic for people, but making small changes are more manageable and in the end they can make a big difference.
Not spending is the same as saving
This might seem obvious – but do you have more clothes than you need? T. Boone Pickens and oil billionaire says he only buys three suits every five years – because in a week he only needs to wear 3 suits. The less money you spend means the more that you will have at the end of the month – and the more you can put into savings. Before buying something, ask yourself “Do I really need this?”
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