5 Common Traits of A Self-Made Millionaire
Are you living the millionaire mindset?
Say what you want about self-made millionaires, but there is something strange and satisfying about how the average millionaire lives. You will see that the average millionaire lives almost completely contrary to most people. Let’s allow the facts and stats to change how we view them, and hopefully, alter how we do life ourselves.
1. Millionaires Are Frequent Readers
According to Richhabits.net, 85% of self-made millionaires read at least two books a month, with most reading time being no less than half an hour long. The average millionaire also does not read to be entertained, but rather they read to acquire knowledge or skills.
Their readings include biographies, self-help books, leadership books, or how-to books. They also tend to wake up on average, three hours before the workday starts to read.
One of the most informative and life-changing books I ever read was less than $10 and completely changed my approach to building wealth. It was called “Rich Dad, Poor Dad” and I frequently advise anyone trying to escape the 9–5 life to read it ASAP.
2. They Have Multiple Income Streams
The average working-class American usually relies on one income, their full-time job. The problem with a single income stream is that if there is any interruption at all, such as being fired or laid off, there is no income coming in. This is why you need to seek out having as many income streams as possible.
According to Businessinsider.com, 63% of all millionaires had a minimum of three different income streams. The most popular were stock market investments, real estate, and part-ownership of a side-business. In this way, if one income falls through, they still have at least two more incomes working for them.
3. They Have Mentors
This is something you don’t see ordinary people do at all as you go through life. A lot of self-made millionaires seek out mentorship from other experienced millionaires. Mentors are great for a few reasons:
- Mentors allow us to tune our distractions
- Mentors zero in our focus
- Mentors share valuable experiences and ideas to help us succeed
Mentors are just successful people that want to share their wealth (of knowledge) with anyone who seeks them out.
This could be anyone in your family who has become a millionaire through investments, business, etc. For anyone wanting to start a business, website, e-commerce, or anything in general, it will be helpful to get someone on your team that has already done it.
This also allows you to learn from their mistakes so that you are not doomed to repeat them for yourself.
Action Step: no matter what you want to venture into, find someone who has already been there and done that, and get them in on your process to coach and guide you.
4. Self-Made Millionaires Stay Frugal
According to CNBC.com, a majority of self-made millionaires do not become big spenders after they become a millionaire. Warren Buffet, who is worth almost $90 billion, did not move into a larger house, and he still spends little outside of his house.
“They get pleasure making money, but don’t enjoy spending it” — Badziag
Being frugal plays a huge role in a person’s ability to ascend to millionaire status. It keeps you from trying to compete with people in your immediate social-sphere or trying to show your worth to people by purchasing more and more material goods.
By never increasing your spending habits as you earn more and more money, you will be well on your way to becoming a millionaire. It isn’t a sure way to become one but rather is a building block in your progress. By not spending your money, you can now afford to invest it and use it in ways that will grow your wealth.
5. Millionaires Do Not Work For Money
This is a two-fold point in terms of how it works into being a millionaire. Self-made millionaires often gain their wealth through solving problems. If you can provide a solution to a person’s problem they will be more inclined to pay you money.
I followed two individuals who run the website Incomeschool.com, and they provided counter-intuitive information on this point, which can also be found on their youtube channel, Income School.
They use niche blogging to earn money online. Jim and Ricky are both millionaires, and their approach to blogging is geared towards solving problems instead of making money. By solving actual problems within a certain hobby or lifestyle, people are willing to read their content, shop through their affiliate links, and spend money to take their online courses.
Self-made millionaires do not work for a paycheck. The vast majority of people in the world go to work a job for a specific amount of hours and expect a specific amount of money to be paid for them. Those same people are showing up and working for money.
Self-made Millionaires find ways to make their money work for them. They use their time to allow their wealth to grow and pull in more money, whether they are actually working or not. An example of this would be investing in the stock market. If you find a good growth stock, you can invest your money, and your value will increase, whether you work or not.
How can you put your money to work so that you can get out of work?
Common methods of earning passive income can be:
- Niche Blogging
- Dividend Investing
- E-commerce Store
- Affiliate Links
The 5 steps presented are indeed common characteristics of self-made millionaires. These are steps that the average person is not doing or willing to take the time to do. Do you feel different from the average person?
The good news for you is that most people are not moving towards the millionaire life, but you can start right now.
Instead of buying that large pizza, why not buy a book and start learning investment skills?
Challenge yourself to save money by staying humble and frugal.
Start putting those skills and money to work!
This article is for informational purposes only. It should not be considered Financial or Legal Advice. Not all information will be accurate. Consult a financial professional before making any significant financial decisions.