David Bakke is a small business owner and writer for Money Crashers Personal Finance, a website dedicated to helping people manage their money and build wealth.
When I hear the phrase “millionaire money mindset,” it brings to mind a man in an infomercial peddling a product that guarantees that you can become a millionaire just by buying into his system. Instead of focusing on get rich quick schemes, however, it is important to recognize the key habits and traits of self-made millionaires.
Most self-made millionaires become wealthy after years of hard work, but they can also attribute some of their success to four fundamental characteristics and activities:
1. Millionaires Possess Self-Motivation and Drive
You can toil away for years, slowly climbing the corporate ladder at your day job, and with enough hard work and luck, you might someday achieve millions. However, most self-made millionaires don’t wait for anyone to hand them their opportunities. Instead, they identify or create opportunities, and pursue innovative business ideas. Anyone who can work hard, take risks when necessary, and believe in themselves can become a millionaire. Having the drive to succeed requires confidence, and not feeling the need to buy flashy boats, cars, or homes.
2. Millionaires Save Their Money
Self-made millionaires must save a great deal of money on their way to achieving financial success. In fact, most continue to save even after making their first million. According to USA Today, on average, self-made millionaires save at least $39,000 per year. They know that amassing money contributes to making their first million, so they continue to save.
The self-made millionaires I know don’t drive flashy cars, live in expensive neighborhoods, or throw money away on extravagances. In fact, if you judged their net worth based on their possessions and their homes, you might never know they were millionaires.
3. Millionaires Invest in the Stock Market
Research also shows that most self-made millionaires invest full-force in the stock market during and after any recession. Investing in the stock market during an economic downswing is a shrewd business move, since history has shown that markets always recover. The millionaires in this country played a pretty substantial role in the recovery of the markets for this very reason. Is there risk involved with investing in a down market? Absolutely – but becoming a millionaire involves taking risks.
4. Millionaires Are Frugal With Their Money, and More Frugal With Their Time
Most millionaires never outgrow their penchant for frugality that they relied on while amassing wealth. Millionaires are also frugal with their time. Once reaching the status of millionaire, most people do not simply rest on their laurels and retire to a beach house. Rather, they manage their time wisely and use their free time to develop more ways to make money.
I’ve known quite a few millionaires, and most of them keep very busy. They have effective time management skills and make the most of their workdays. Even while commuting, they continue to work. At home, they limit TV time, and instead study new developments and news online. They attend lunchtime association meetings to continue to develop their professional network. Every minute means something to the self-made millionaire.
We can all learn something from the self-made millionaire. These men and women recognize opportunities, and they continue to relentlessly pursue new opportunities and ideas. They don’t let setbacks get in their way, and they keep working toward their goals. They save money when they can, and they continue saving money even after they meet their financial goals. By following the millionaire mindset, everyone has the potential to gain wealth.
Do you have a “millionaire money mindset”? What other common traits do millionaires have?