Honestly, there is no secret or silver bullet to becoming a millionaire. It takes a plan and commitment to that plan. Having these productive habits helps, too.
So, what DO millionaires have in common?
They have a written financial plan including paying off debt, monthly incoming and outgoing, and investment and savings options. Millionaires (and those that want to be millionaires) track every expenditure and actively monitor their finances.
Millionaires save, save, save. The 80-20 rule is an easy way to start: Save 20% of every paycheck and live on the remaining 80%. Every opportunity to spend is also an opportunity to save. The choices millionaires make reflect their goals, not their current financial status. They choose wealth over stuff–no spending on the latest gadget or designer clothing while they’re making that first million.
The money millionaires save isn’t hanging out in a bank savings account. They save target amounts to invest in higher-yielding products. They contribute “something” of every paycheck to an emergency fund so the money-making accounts remain hands-off.
Millionaires avoid debt and live modestly. As previously stated, it’s about choices. If that vacation requires a credit card to pay for it, choose a staycation instead. If the luxury car costs as much as a mortgage payment, stick with the reliable, four-door sedan. Forgo the ego and choose to live on less than the paycheck.
Millionaires look for opportunities to make more money, from working multiple jobs to starting their own businesses. It might mean changing jobs more frequently and working weekends. Yes, it cuts into free time, but only in the short-term. And really, how does sitting on a couch in front of a TV make you rich?
It doesn’t take a special degree or excessive book learning to become a millionaire. It takes a plan, hard work and a commitment to long-term rewards vs. short-term gratification.