Being good at handling money can play a major role in your success. It’s not about the money, in and of itself – it’s about the freedom the money can provide you. Financial comfort allows you to focus more on the things you care about, helping you to become the best version of yourself.
There’s a difference, however, between being good with money and being a millionaire. While achieving millionaire status can seem like a far off dream for many, there are best practices you can follow to help you move closer to your goal of becoming a millionaire. It’s all about adopting a mindset dedicated to good habits and building success.
Here’s how you develop a millionaire mindset.
1. Develop a strong work ethic in whatever you do.
This may not be the sexiest answer, but it will be very hard to become a self made millionaire without having a strong work ethic. You’re probably not going to win the lottery. You could earn a big inheritance from a long lost relative, but it’s not likely. Your only viable path to millionaire status is to find something you’re passionate about that also provides value for people and pursuing that as a livelihood.
Finding work you truly enjoy and that fulfills a need is a great way to ensure you’ll want to work hard at it.
2. Work smarter AND harder
There’s a famous expression cautioning people to “work smarter, not harder.” The idea is that by being more efficient in the type of work you do and focusing on more meaningful tasks, you can accomplish more.
It’s half right. To develop a millionaire mindset, you’ll need to work smarter AND harder than most people. But working smarter is all about focusing your efforts on the jobs that require your unique skill set and approach. For example, if you run a business, you may need to make deals with others in your field. That means you’ll need someone to schedule the meetings. Rather than handle that yourself, you can hire a virtual assistant to schedule your meetings for you. It may cost you money to do so, but in the long run, it frees you up to focus more of your attention on strategic, high-level tasks.
In short: you’ll need to work harder doing the right kind of tasks. But by working smarter, you can delegate and/or eliminate tasks that take up too much of your time.
3. Own your business or company
Naval Ravikant is a Silicon Valley angel investor who frequently distributes nuggets of advice about building personal wealth. In his tweet thread about “How to Get Rich Without Getting Lucky,” he emphasizes the need to avoid renting out your time. If you’re an hourly or salaried employee of a company, it will be much harder to become rich than if you own your own business or have equity in a company. When you’re paid hourly, it’s that much harder to “scale up” the amount of money you can make. You’ll always be at the mercy of your boss or supervisor as they will control how much you take home.
It’s not a play for the faint of heart, and in the short-term can involve a lot of risks and hard work. But it’s something you should consider if you have a successful, winning idea that you believe in. Being the owner of a business or company can take a long time to pay off – but when it does, it will be worth it.
4. Sell a product, not a service
You can certainly become a millionaire providing a service. But it may not be as easy as when you develop a product – particularly a digital product you don’t have to manufacture over and over again.
Consider someone who freelances as a website developer. It’s a useful skill to have, but it involves working with each client to receive their specifications on the website they need to be updated. That will take up a lot of your time every time you build one.
Now consider someone who develops a digital product such as an e-book or an eLearning course. You develop the product once and can then sell it over and over again to multiple customers. When you develop a millionaire mindset, that involves optimizing your time. By developing a digital product over a service, you make the best use of your time.
5. Practice extreme consistency in your finances
Whether it comes to budgeting, saving, or investing, be consistent in what you do financially. Don’t take unnecessary risks. If you do take risks, make sure they are calculated ones done under the supervision of a financial planner. Think of the fable of the tortoise and the hare. When you develop the millionaire mindset, you adopt the approach of the tortoise: take meaningful, slow-moving, purposeful action with your money over a long period of time.
Budgeting is a big part of becoming better with money – it’s also a part of becoming a millionaire, just on a slightly larger scale. No matter how much money you make, you’ll never lose the need to manage your expenses. Keep an eye on your spending habits even after you’ve achieved financial success so that you can remain financially successful.
6. Be patient
Finally, it’s important to realize that you don’t become a millionaire overnight. When you develop a millionaire mindset, you’re committing to a process that will take plenty of time. Anyone who achieves financial independence through some sort of get rich quick scheme isn’t likely to stay wealthy for long.
By developing the right skill set, establishing long-term, consistently smart financial habits, and trusting in your talents and smarts, you can become a millionaire. But Rome wasn’t built in a day and your millions won’t be earned in that amount of time either. Revel in the process of becoming a millionaire, because it may take a while. But that will only make it worth it when you achieve it.
By following the tips outlined above, you can develop a millionaire mindset that will leave you and your loved ones financially comfortable and able to pursue the life you want to live. Money may not be able to buy happiness, but a lack of money surely has the potential to lead to problems. Developing a millionaire mindset is all about driving towards the goals you’re passionate about while remaining patient and consistent in your financial practices.