What you do today matters.
And actually, your daily habits are a determining factor in how successful you become.
Thomas Corley, author of Rich Habits: The Daily Success Habits of Wealthy Individuals likes to call this “the avalanche”
He says these habits are like snowflakes – they build up and give you an avalanche of success.
You see, Thomas spent five years studying the habits of millionaires.
But here’s the thing:
Everyone has a combination of wealthy habits and poverty habits. The key, though, is to learn to develop 50% or more of the rich habits.
Anyone can do this.
The truth is, most millionaires aren’t driving Bentley’s and chartering yachts.
They’re thrifty, smart with their money and investments, and budget.
After years of following that simple formula, they become rich.
So let’s get started:
1 | Joneses Who?
Millionaires don’t keep up with the Joneses.
Having the nicest car, home, or clothes isn’t important to them. That’s not the millionaire lifestyle.
They don’t focus on status. Instead, they focus on financial freedom, independence, and happiness.
Most millionaires will tell you that acquiring more stuff doesn’t lead to happiness.
When you’re 80 years old, you won’t be worrying about that nice car you had when you were 35.
Only 1 in 4 millionaires have spent $100 on a pair of shoes. Louboutin, who?
So one key distinction between the rich vs poor mindset is the ability to stop before making a purchase and ask:
Will I use it?
Do I want to store it?
Do I want to clean and/or maintain it?
Would I rather put the same money elsewhere?
If you ask yourself those four questions, you’re bound to be smarter with money.
“Money never made a man happy yet, nor will it. The more a man has, the more he wants. Instead of filling a vacuum, it makes one.”
– Benjamin Franklin
2 | They’re Avid Readers
As Jim Rohn once said, “Reading is essential for those who seek to rise above the ordinary.”
If there’s one thing that’s true about the habits of millionaires, it’s this:
They have a constant desire to learn.
88% of them devote 30 minutes a day or more to self-improvement and self-education.
They read things like this to help them gain and acquire knowledge.
They don’t rely on Facebook or Twitter for the latest news.
To them, self-development books are much more important than the latest reality show.
They turn “unproductive” time into something productive.
(Like by listening to Audible during their commute or lunch breaks.)
You see, the average millionaire reads at least 2 books every month.
How many does the average non-millionaire read?
Only four a year.
Note: the Audible link gives you a 30-day free trial and 2 free audiobooks
“Never trust anyone who has not brought a book with them.”
– Lemony Snicket
3 | They Don’t Waste Time
You get 1,440 minutes every day, and you’re ultimately in charge of what you do with them.
But those 1,440 minutes go fast, and next thing you know – it’s bedtime again.
So before you let your minutes and hours drift away into a myriad of little things, wake up to the real purpose of your life.
Time is a resource we can’t get back. This. is. it.
“Do you love life? Then do not squander time, for that’s the stuff life is made of.”
– Benjamin Franklin
67% of self-made millionaires spend less than an hour watching TV each day.
63% spend less than an hour a day on social media.
Instead, they spend that time pursuing their goals, dreams, reading, learning, exercising, volunteering, and networking.
4 | They Have Multiple Streams of Income
Think of this in terms of a fisherman with one line cast versus a fisherman with three lines.
Who’s going to catch more fish?
One of the most important habits of millionaires is that they don’t place all their eggs in one basket.
The more sources of income you bring in, the more potential you have to rake in bigger paychecks.
And it helps with economic downturns.
Unexpected expenses pop up.
Medical expenses happen.
The average millionaire has seven streams of income.
Not only does it increase their wealth, but it offers them opportunities to develop new connections with people.
These connections are what lead to better opportunities and growth. It earns them more money and puts them in new places with new people.
“Opportunity is missed by most people because it is dressed in overalls and looks like work.”
5 | They Think BIG Picture
“The man at the top of the mountain didn’t fall there.”
Several years ago, Forbes did a research study about goal-setting at Harvard University.
They asked students if they had set specific, written goals, as well as if they’d made clear plans to achieve them.
Here were the results:
3% had written goals and plans to achieve them
13% had goals in their heads but hadn’t written them down
84% had no goals at all
After 10 years, the same group of students were interviewed again.
The results were surprising:
The 13% of the class who had goals, but didn’t write them down, earned twice the amount of the 84% who had no goals.
And the 3% who had written goals were earning, on average, 10 times MORE than the other 97% of the class combined.
This is an example of how goal setting will transform your life.
Millionaires process success.
Here’s the thing:
Goals are only goals when they have written plans to achieve them.
And if you keep a calendar and a to-do list, you’re 289% more likely to become a millionaire versus if you don’t.
6 | They Wake Up Early
If you want to know the secrets of the millionaire mind, it all starts with waking up before 6 am.
Across the board, I found this to be one of the most consistent habits of millionaires.
One study found that almost 50% of millionaires wake up at least three hours before their workday starts.
Why should you do that?
Because when it’s early in the morning, you’re less likely to be interrupted. No one is going to call or text you, there aren’t any meetings, and you don’t have to worry about emails flowing in.
It’s pure you time. And that’s why the first two hours after waking up are often called “the golden hours”
Use them wisely.
“One key to success is to have lunch at the time of day most people have breakfast.”
7 | They Track Their Spending
Rich people track their expenses too? Absolutely.
It doesn’t matter how many zeros they have on the end of their money, they still make sure to manage it.
They have full control of their financial future.
If you’ve read The Millionaire Next Door, then you know that most millionaires know how much they spend on groceries, gas, and every other household line-item.
“Planning and controlling consumption are key factors underlying wealth accumulation … Operating a household without a budget is akin to operating a business without a plan, without goals, and without direction.”
“A budget is you telling your money where to go instead of wondering where it went.”
8 | They Delay Gratification
Everyday millionaires spend most of their lives sacrificing short-term wants for long-term success.
They have no problem buying a used or older car.
They live in a modest home.
They don’t need the latest iPhone.
86% of luxury cars are driven by non-millionaires. Rich people are more likely to buy Toyotas, Hondas, and Fords.
Because the quickest way to be middle class (and stay there) is to keep the never-ending payments.
Delayed gratification is one of the most effective personal habits of millionaires.
People who learn to manage their short-term desires thrive more in their careers, relationships, health, and financial lives.
“Every time you borrow money, you’re robbing your future self.”
-Nathan W. Morris
9 | They Hang out With High-Achievers
The people you surround yourself with matters.
Did you know that your net worth mirrors the level of your closest friends?
Winners are attracted to winners. We become the people we spend time around.
And so one of the hallmarks of self-made millionaires is their conscious effort to associate with like-minded people.
They don’t hang out with people who spend money like they’re in Congress.
If you want better habits, then hang out with better people.
“Keep people in your life that will change it for the better.”
10 | They Invest
Most millionaires invest about 20% of their income.
They focus mostly on good growth-stock mutual funds that average a return of 10-12% over a 20 year period.
They also keep track of their investment decisions instead of putting their money on autopilot.
And yes, retirement contributions count as investments – so start while you’re still young!
“Don’t tell me what you value, show me your budget, and I’ll tell you what you value”
11 | They’re Satisfied
“I made myself rich by making my wants few.” – Henry David Thoreau
Millionaires have learned to be satisfied with what they have.
They don’t care to impress people. And that is what helps lead to their happiness.
Gratitude builds happiness.
They are financially secure and independent.
They are content with the life they’ve built for themselves.
They are able to find ways to improve that doesn’t involve having the nicest car or biggest home.
They don’t have to worry about money like other people who are living paycheck to paycheck.
They realize it’s not a good deal if they don’t need it.
Millionaires aren’t winning because they’re lucky. They’re winning because they follow these simple habits on a regular basis, throughout their lifetime.
So despite misconceptions, these are the most common habits of millionaires.
Little by little, small things add up.
Thanks for reading.
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