The 5 common traits of millionaires
Let’s be real, most of us want to be able to wake up one day and see that second comma in our bank accounts. How do we make that happen though? It happens controlling your habits! Here is a list of the 5 common traits/habits that are found in millionaires.
They avoid bad debt
Now, many millionaires take advantage of debt, especially when it comes to real estate and businesses, but they avoid the treacherous “bad debt.” I’m talking credit card debt, student loan debt, pay day loans, car loans, and all the junk that keeps middle class folks in the middle class. Here is the thing about having payments, they suck your monthly cash flow! Millionaires understand that cash flow spent on consumer debt, crushes their ability to put that cash flow into income generating assets. Every wonder why the rich get richer? It’s because they spend their money on things that make more money like stocks and real estate. Not a new Gucci belt.
2. They buy cheap used cars
Where this maybe isn’t the greatest example in the recent car market due to the pandemic, it stands over time. Most millionaires buy around a 3 year old used car. Why? Because millionaires HATE owning depreciating assets. A brand new car loses about 30% of its value in just the first 2 years alone! Millionaires are in the business of making money on their investments, not losing it!
3. They invest early & often
One of the things that makes a millionaire and millionaire is that they have probably taken advantage of compound interest in some way or form. There is not one set way that millionaires invest their money, but it is often in either a business, stocks, or real estate. Even a $100 a month investment in the stock market could make you a millionaire with enough time. One of the first keys is investing as soon as possible to take advantage of compound interest, but the second key is investing as often as possible! Millionaires treat their investments as another bill that the MUST pay every single month. They do this by paying themselves FIRST.
4. They live below their means
The best part about millionaires is that they are more common than you think. You probably have one just a couple houses down from yours! Millions are not made by buying a bunch of “stuff” that goes down in value and makes you look cool to your friends. Millionaires focus on BEING wealthy, rather than LOOKING wealthy. Millionaires are hyper-focused on the opportunity cost of buying “things.” Let’s take buying a nice new 80k boat for example. If instead of buying that fancy boat you decided to invest that money, it would grow to almost 600k at a 10% rate of return. Millionaires understand the concept of delayed gratification.
5. They have multiple streams of income
Putting all of your eggs in one basket can be risky! Simply just having a job is one of the biggest risks out there if you ask me. What happens if that job goes away some how? Sure, you might be able to get another one relatively easy, but what if you can’t? If you were to stop receiving an income, on top of all of the other bad things that follow, you wouldn’t be able to continue investing! Having multiple streams of income is like having multiple roads to a destination. Even if one road is closed, you can still move on with your day by taking another route. The worst thing that could happen from losing a sole source of income is going into debt or burning through an emergency fund. Millionaires understand that the risk of having zero cash flow is simply not an option.
Welp, there is your list of some of the most common traits of millionaires. Thanks for reading!