Tell me what you think of when you envision a self-made millionaire? Someone who spends lavishly on cars, homes, and vacations, sipping piña coladas on the beach without a care in the world?
As a little kid, I used to envision that. Fast forward a few years (OK, decades). I finally came to understand that if my goal was to really to become a self-made millionaire, I’d have to start taking the actions they took.
And those actions aren’t what you think.
Sure, you can try to craft your own special plan to reach millionaire status. But my time is precious and non-renewable (as is yours), and the path to millionaire status has already been paved for you many times over. Why reinvent the wheel?
As Tony Robbins says, “Success leaves clues.”
So, let’s follow the clues and decipher the millionaire path to wealth.
Millionaire Spending Habits
Millionaires have strategic spending habits. It’s not always what they spend money on, but more importantly, what they don’t spend money on that counts.
Millionaires are frugal when it comes to “wants.”
They know without a doubt the difference between a “want” and a “need.” They look to lower costs on large ticket items such as cars, houses, and vacations to get ahead.
They avoid lifestyle creep (i.e., cars, houses, vacations) until they have assets to help pay for these “wants” with passive income after they have hit their goals.
Millionaires know how to create, save, and invest their income.
They understand the need to create multiple streams of income in order to move from the left side of the cash flow quadrant (employee, self-employed) to the right side of the cash flow quadrant (business owner, investor). Over 65% of millionaires achieve this through a combination of:
Real estate
Business
Stocks
They execute this "create, save, invest" cycle until they reach financial freedom. Then, maybe they start taking on riskier investments.
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