7 Habits Of A Millionare
Last Updated: February 23, 2023
It can be easy to feel like becoming a millionaire is an impossible dream, but it's important to remember that wealth is not just a result of intelligence. In fact, there are many habits and behaviours that can help anyone work towards financial success.
Instead of falling for 'get-rich-quick schemes or relying on luck,' it's important to adopt habits that can help you grow your wealth over time. Millionaires aren't necessarily different from the rest of us - they just have particular practices and strategies that have helped them achieve financial success. By incorporating these habits of millionaires into your own life, you too can work towards becoming a millionaire.
1. They are prepared to read and learn
While leisurely reading is a favourite hobby for many of us, millionaires read as a means to improve themselves. According to socio-economist Randall Bell, "those who read seven or more books per year are more than 122 percent more likely to be millionaires" 1. A willingness to learn and read, regardless of age, is directly correlated to education, income, and happiness.
Here are a few recommended books that can help you learn about personal finance and wealth building:
- "Rich Dad Poor Dad" by Robert Kiyosaki: This classic personal finance book teaches readers the importance of financial education and how to build wealth through investing in assets rather than liabilities.
- "The Millionaire Next Door" by Thomas J. Stanley and William D. Danko: This book offers a unique perspective on wealth by studying the habits and behaviours of ordinary people who have managed to accumulate significant wealth.
- "The Intelligent Investor" by Benjamin Graham: This book is considered a classic in the world of investing and offers practical advice on how to make intelligent investment decisions.
- "Your Money or Your Life" by Vicki Robin and Joe Dominguez: This book teaches readers how to align their money with their values and offers a step-by-step guide to financial independence.
- "The Total Money Makeover" by Dave Ramsey: This book provides a step-by-step plan for getting out of debt and building wealth. It offers practical advice on budgeting, saving, and investing for the long term.
2. They Plan
Although it may be considered a broad term, there are specific areas where millionaires establish a plan to ensure success. For example, planning their budget in order to understand cash flow and minimize expenses is a simple yet underutilized technique to save money immediately.
They typically have a well-thought-out financial plan that outlines their financial goals and the steps they need to take to achieve them. This plan helps them to stay on track and make informed decisions about their money.
Millionaires will set milestones and yearly projections; however, their main vehicle to reach these is through daily goal setting. This sets forward an immediate action plan and "helps keep them focused and build momentum" 2.
3. They have multiple flows of income
Relying on a single source of income stints your ability to grow wealth. During five years of research, Tom Corley discovered that millionaires tend to have additional earnings through renting out property, running a small side business, and part-ownership in other businesses 3. Do not limit yourself; passive income will be a welcome addition when you plan your budget.
4. They save and invest wisely
Millionaires know the value of saving and investing for the long term. They regularly contribute to their retirement accounts and invest in a diverse range of assets to help grow their wealth.
Investing is the most efficient way to earn money on your savings. Many millionaires will invest 20% of their household income. Their wealth will stem from this and not their regular paycheck. Consult an advisor to determine what investing course of action is right for you.
5. They seek out financial education
Millionaires are always looking for opportunities to learn more about personal finance and investing. They understand that financial knowledge is power and are willing to take the time to educate themselves in order to make informed decisions about their money.
6. They are healthy
In an interview with Four Hour Body Press, billionaire Richard Branson explains that "he definitely can achieve twice as much by keeping fit" 4. He is not alone in this thinking. Numerous millionaires have attributed a healthy diet and regular exercise as the driving force behind being able to function effectively for more extended periods of time.
Corley's research also noted that self-made millionaires wake up "at least three hours before their work day actually began" 5. Get up early and get going; the solitude will prevent the regular distractions that arise during the work day.
7. They surround themselves with the right people
As a rule of thumb, surrounding yourself with people who drive you to do more will inevitably improve any facet of your life. Networking has become an oft-used buzzword, however, providing value to others without asking anything in return will open opportunities in the future.
By adopting these habits and behaviours, anyone can work towards achieving financial success and learn how to become a millionaire in Canada. It takes dedication and hard work, but with the right mindset and approach, it is possible to build a solid financial foundation for the future.
Our advisors can guide you on your personal wealth management essentials.
Resources
1. https://www.cnbc.com/2017/04/07/7-rich-habits-of-highly-successful-people.html
2. https://www.entrepreneur.com/article/304219
3. https://www.slice.ca/money/photos/habits-of-self-made-millionaires/#!They-Don-t-Rely-on-One-Source-of-Income_
4. https://www.youtube.com/watch?v=QFjgMKwpz_k
5. https://www.cnbc.com/2017/04/07/7-rich-habits-of-highly-successful-people.html
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