Money is what drives this world and everyday billions of people wake up in the morning and try to figure out how to make more. Many people in the world think that being a Millionaire means being a bad guy or selling your soul. But being a millionaire has lot more to do about understanding the world and using the right everything around you to succeed. It is true there are qualities in Millionaires that give them much more of chance at making money than others, qualities such as being entrepreneurial, risk taking and the ability to spot opportunities and taking action. But there are other reasons why you aren’t a millionaire yet and we want to cover a few reasons today.
- Creator Vs Consumer Mentality
This is one of the major reasons that some people are millionaires and the majority of the world population isn’t filled with millionaires. You’ll need to learn to create. Creating has a broad meaning; here let’s take the obvious examples. Large companies like Apple and superstars like Robert Downy Jr. and artists like Beyoncé are all creators. They put their work out there, they just don’t consume. They are creators, how many times have you created something in life? The second meaning of creator is one who creates value. You could have a great skill and you add a lot of value to your clients through your services. Having that creative mindset is very important to succeed and become a millionaire.
- Making money work for you
Most people do not know the true value of money and they don’t put their money work for them. The mentality of people who aren’t millionaires is that of hoarding their cash and trying to put it in a bank account that they hope will earn Interest. But the Interest they earn will not even outpace inflation and ultimately their money is eroded. Millionaires do a lot more with their money, they invest in stocks, they invest in businesses and different varied kind of Investments. They are making money even when they are sleeping, and when you do that; you are on the right track. Millionaires also think of the Stock Market as a wealth-generating machine, whereas a lot of people think the stock market is either for gambling or making short term gains. If you want to be a millionaire, you have to think long-term.
- Multiple Sources of Income
People who are millionaires have multiple sources of Income. Don’t think you cannot become a millionaire if you are employed, you can. For a person who has a salary, can do other things and have other side businesses that can make them money. A millionaire has variety of business Interests apart from their main business. A millionaire may have a salaried job, but they also will have side businesses like a restaurant for example. They also invest heavily in their friends’ ventures. Millionaires also think long-term and make money through their investments in the stock market by dividends. Hundreds of thousands of dollars are earned through every year just through their investments. A perfect example of this is Bill Gates. Bill Gates’ net worth from his shares in Microsoft comes up only to $10 Billion, whereas his total net worth is north of $50 Billion. The balance is all through his investments in companies as a VC and through the market.
- Living below your means
Not all millionaires out there are driving around in Lamborghini and ordering Dom Perignon every time they go out. More often than not, they are living way below their means. People think if they have the money to spend for something expensive then they should get it. This is the wrong mentality. If a $200 Android works for you then why do you need at $700 iPhone? That was just an example. To become a millionaire, you have to live below your means and save first and spend later. This habit can be formed early on by saving even a little bit whenever you get money.
- Plastic money can be dangerous
One should not pay for something with money they do not have. But this is exactly what a credit card is and if you get into the vicious cycle of having a credit card and using it every time, then you lose every time. One of the greatest Investors in the world, Warren Buffet does not own a credit card. A credit card can make you feel rich momentarily because of the amount that is available to you as a limit, but repaying this can be a big hassle. More importantly If you cross the due date of paying, then you’ll have to shell out more than 18% as Interest and that can dent your wallet.
Millionaires see the world slightly differently and we can learn from them, what are your thoughts on becoming a millionaire? Talk to us in the comments below!
