There’s no doubt that it takes work, commitment and effort to become financially successful. It doesn’t mean it’s not possible, it simply means that it takes effort. Time, energy and dedication. There are over 20 million millionaires in the United States. Think about that, more than 20 million people have a net worth of $1M or more.
This shows us that its possible, and not only that. It’s been done quite literally millions of times before by millions of people. How can it be so difficult if 20 million people have done it in the past? Maybe it’s not as difficult as it may seem. Maybe it’s about having the right information and action to align with that information to create the changes necessary to build wealth.
Today we’re going to dissect habits and traits of the millionaires that live all around us. In an effort to apply these concepts to our life so that we can build wealth and have a nest egg once our career come’s to an end.
5 Important Insights From Millionaires
- They Invest: What is probably the most important common factor with millionaires is that they simply invest their money instead of spending it all on entertainment and at the mall. Invested money grows over time and the compounding effect of that money growing grows beyond what we know is possible. Even Albert Einstein once said “Compound interest is the eighth wonder of the world. He who understands it, earns it; he who doesn’t, pays it”. Millionaires invest in real estate, stocks, businesses, crypto, as well as their own personal skills, health and education more than most people.
- They Own Businesses: More than 2/3rds of millionaires own businesses. That’s two out of three people. A business that succeeds grows and produces more revenue. As this wealth grows and is accumulated the money they earn is then invested into more businesses through stocks and crypto holdings. If you want to become a millionaire, you may want to consider starting a business. Here’s a list of 10 at home based businesses that will make more money in 2022 and beyond.
- They Own Real Estate: If you thought that 2 of 3 millionaires owning a business was impressive this statistic will be even more impressive. An incredible 90% of millionaires own real estate. That’s nine out of 10 people. What does this mean? Renting is simply like throwing money out the window each month. If you buy a home, or condo, or apartment, or even land you have an appreciating asset as opposed to a liability that costs you money each month, which brings us to our next insight.
- They Own Assets Not Liabilities: Do you know the difference between an asset and a liability? An asset is something that puts money into your pocket each month while a liability is something that takes money out of your pocket each month. The craziest part about this realization for me is that you can take your liabilities and convert them into assets. Your real estate that costs you money each month can be rented out and wallah! It’s an asset now. Your car that sits in the driveway can be rented out on apps like Turo. Your extra room in the garage can be rented out as storage space. The list goes on and on. Look for ways to turn things that cost money into things that put money in your pocket each month.
- They Have More Than One Income: While the majority of the population has one job and one income source millionaires tend to have multiple income streams. They may have a main income stream such as their business or place of employment but they look for opportunities to invest their money to make it grow. They may invest a paycheck or two into stocks that pay dividends and they hold onto those stocks (that appreciate in value) and pay quarterly dividends to them. They may take their skillset from their job and offer consulting on the side. They may have a side hustle or passion that they are growing that eventually overtakes their job income.Side Note: If you have a ‘side hustle’ or business that is making more money than your job, quit your job immediately and go all in on the side hustle/business provided that this alone can cover your bills. Your income will 2-3x with that one simple move and you’ll have freedom and life on your terms from that moment forward.
Lastly, millionaires are open to advice and learning. They are open to investing into themselves. Millionaires spend more money on their health, more money on their education, more money on their skills than people who are not millionaires. They realize that THEY are their greatest asset and if they have healthy levels of energy and health they are the most productive machine they can possibly be.