Ever wondered how to become a millionaire?
I have and that’s exactly why I asked a few millionaires how they did it. What I found is that it actually isn’t as hard as you might think.
There are six distinct things that millionaires do that you should follow if you want to become a millionaire in your 30s, 40s, and beyond!
In this post, I’ll share the six millionaire habits that you’ll need to become a millionaire.
6 Millionaire Habits & Habits of Billionaires to Follow
- Learn how to solve problems
- Invest your money
- Pay off debt
- Be frugal and don’t waste money
- Give generously
- Constantly reading to learn
1. Millionaires solve problems
Unless you’ve won the lottery or gotten a pretty large inheritance, you’ve got to put in some work to make money. Money just doesn’t grow on trees. If that were the case, everyone would be wealthy.
Understanding a millionaire’s mindset is essentially understanding business and the economy. Businesses exist for the sole purpose of meeting a need and solving a problem. Those that thrive do so because they meet these needs effectively and efficiently.
Millionaires think the same way. They take every opportunity to solve a problem and meet a need. They do so through entrepreneurial ventures and through careers that provide an opportunity to solve a niche problem.
2. Millionaires invest
It’s great to save, but saving alone won’t make you rich. If you haven’t heard the phrase before, I’ll share it with you: it takes money to make money.
Invest is necessary for you to build wealth. Whether you choose to invest in the stock market, real estate, or others, it is necessary if you want to build sustainable wealth.
What do millionaires invest in?
Though their investment portfolio may be diverse, millionaires will not invest in something that they are not familiar with.
Case and point, billionaire Warren Buffet. This billionaire’s advice when it comes to money is simply, “Invest in what you know…and nothing more.” One of Dave Ramsey’s tips is to invest in “good growth stock mutual funds.”
Here are a few things that millionaires invest in:
- Stock market
- Intellectual property
- Real Estate
- Fine Art
Investing Books for Beginners
If you’re new at investing, it can seem overwhelming. Here are a few books that I recommend to help you learn how to invest so that your money can start to work for you.
3. Millionaires have little to no debt
Millionaires know that you can’t build wealth with a hole in the bucket.
Ever wonder why many athletes and celebrities go bankrupt? Their debts far exceeded their assets. Don’t let the black cards fool you, true wealthy people rarely use debt and certainly aren’t buried in it.
If you’ve ever taken a finance class, then you’re familiar with what I call the “aloe” equation.
Assets – Liabilities = Owner’s Equity
In layman’s terms, your cash and cash equivalents minus your debt is your net worth. To be wealthy, you must have a very positive net worth and the best way to do that is to not carry debt!
In Dr. Dennis Kimbro’s The Wealth Choice: Success Secrets of Black Millionaires, the average black millionaire surveyed had less than $2,500 in credit card debt and, outside of the mortgage, $10K overall.
Books to get out of debt
4. Millionaires are frugal
The book, The Millionaire Next Door, share’s the lifestyles of everyday millionaires. One thing that is common among them is that they are frugal.
Frugal doesn’t mean that they are cheap. Contrarily, it means that they’re wise in their spending and put their money where it matters most.
Here are some frugal living tips that you can follow.
5. Millionaires give
Whether it’s for tax purposes, religious beliefs, or just because they have more money than they know what to do with it, millionaires tend to be givers.
I’d venture to say that many– whether Christian or not– know the law of reciprocity: “Give and it shall be given to you” (Luke 6:38).
You might recall Oprah’s infamous car giveaway, or maybe you were a recipient of the Bill and Melinda Gate’s highly sought-after Gate’s Millennium scholarship. Regardless of how they give, they give.
Giving is a millionaire habit that you can adopt now at a smaller level.
6. Millionaires read
You’ve probably seen this quote floating around social media before:
85% of self-made millionaires read two or more books per month.
I’m certain that this behavior is less about the number of books that are being read and more about the pursuit of knowledge. Millionaires read to learn and, ultimately, apply what they’ve learned to become better people, business persons, and money managers.
During his Millionaire Theme Hour shows, Dave Ramsey always asks his guests how many books they read. Without fail, their answers always align with this statistic.
The quote, “readers and leaders,” didn’t just come out of nowhere. The financial leaders of the world are sure to be reading (or listening) to at least two books per month.
Millionaire Mindset Books
Final thoughts on how to become a millionaire
As you can see, becoming a millionaire isn’t rocket since. Instead, it is consistent hard work, money management, and learning. If you can follow these habits of billionaires and adopt these millionaire habits, you’re well on your way to attaining wealth.