Live like a Millionaire – 7+ smart money habits of Millionaires

Millionaires are something people aspire to be and look up to. “How did that guy become a millionaire, what does he do?” I have certainly asked that question before. Millionaires come in all shapes and sizes and do many things to become millionaires. They have businesses, sold businesses and done many other things to get their money. What is important is how they stay millionaires and the smart money habits they use. We can learn a lot from these millionaires and billionaires as they know exactly what they are doing, if they did not they would not be where they are today. Here are some examples of frugal millionaires and billionaires.

  • Warren Buffett lives in a house that he bought in 1958 for around $30,000.
  • Mark Zuckerberg drives an average car.
  • John Caudwell (worth $2.7 billion) rides his bike 14 miles to work every day and even cuts his own hair.
  • Jim C. Walton (son of Walmart founder) drives an old truck with no air conditioning.

They wear the same clothing and ordinary clothing.

Look at Mark Zuckerberg who wears the same colour jeans, t-shirt and hoodie everyday. They are cheap, inexpensive and do the job. Millionaires and billionaires do not care about the latest fashion and trends they have bigger things to deal with.

President Barack Obama once said, “You’ll see I wear only grey or blue suits. I’m trying to pare down decisions. I don’t want to make decisions about what I’m eating or wearing. Because I have too many other decisions to make.”

Many other successful people feel the same way, including the late Steve Jobs, Albert Einstein, Warren Buffet and many others. They save their money and spend less time thinking about these mundane matters.

The definitely have more than one source of income

Warren Buffet said, “Don’t put all your eggs in one basket”. These rich people alway have more than one source of income. They have businesses, invest in start-ups and have products for sale. They may have a day job, a business, rental properties, dividend income, and more.

They also do this because millionaires know that one source of income may not last forever, and they are also able to lessen their risk by having multiple income streams. This ensures that have money coming in all the time and if one source goes down then know they have other sources pulling in money. Take a lesson from this, it can help you later on.

They always have goals

They always have goals. Goals give them a purpose and mission. Does not matter how crazy the goal is, if it can be achieved they will find a way.

Setting goals is important because without a goal, how do you know where you’re heading? Goals can help keep you motivated and striving for your best.

Please keep this quote from Statistic Brain in mind:

People who explicitly make resolutions are 10 times more likely to attain their goals than people who don’t explicitly make resolutions.

Having goals can help you achieve more.

They have a budget and always watch where their cash is going

They may not have a budget like we do. But they know exactly where there money goes and why it goes there. If they see no benefit in sending money one way then they stop. They like to spend their money on things that bring value and returns if possible not just on anything. This way they stay millionaires.

They live below their means

Millionaires tend to live below their means. They only spend on what they need and may invest the rest for returns later on. Many millionaires buy items used, they drive “normal” cars like Toyotas, and they aren’t trying to keep up with the rest.

People who aren’t millionaires may try to live like one wasting their money on things they don’t need. Millionaires spend on what they need and use the rest smartly. Many people try to keep up with others and play games which can prevent them from using their money wisely.

When trying to keep up with the rest, you might spend money you don’t really have. Always try to please god and never people. Pleasing god makes you a winner, pleasing people will always make you a loser.

They look after themselves first

This means they first put their money into savings after they receive it and spend what is left on the things they need. Doing this may allow you to save more money and cut back on spending on things you do not need. After a pay-check, save first then spend.

They Invest

They make their money work for them as idle money has no use. They invest their money and make it work for them, earning all the time.

This is important because a £100 today will not be worth £100 in the future if you invest it. If you leave in hanging around it will be worth the same. If you invest then you can turn your £100 into something more.

For example: If you put £1,000 into a retirement account that has an annual 8% return, 40 years later that would turn into £21,724. If you started with that same £1,000 and put an extra £1,000 in it for the next 40 years at an annual 8% return, that would then turn into £301,505. If you started with £10,000 and put an extra £10,000 in it for the next 40 years at an annual 8% return, that would then turn into £3,015,055.

They negotiate and haggle

They use coupons where they can and negotiate for a better deal where they can. They like to spend as little as possible and put the rest in a place where it works for them. This way they get the best deals and make more money with their savings. We should do the same.

[image from salon]

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