FREE E-BOOK: 5 STAGES OF MONEY

When I started getting serious about my money, I was researching and reading anything I could about the topic. I remember reading about the habits of millionaires, and a few habits stuck out to me.

Millionaires wake up early.

Many millionaires wake up about three hours before they start their workday. At the time I read the article (about 10 years ago), I was getting up around two hours prior to the start of my workday. 

Today I get up three hours prior to starting my full-time job each day. Some people have more energy in the morning, and some are night owls. 

I don’t know that waking up early is helpful for everyone, but for me, I’m the most productive and most creative in the mornings. 

Waking up early gives me time to write and start my full-time job before too many of my US colleagues are online, which makes me feel like I get a head start each day.

Find your most productive hours and mold your sleeping schedule around those hours.

Millionaires don’t watch much TV.

If you’re spending hours every day glued to the television, there is a good chance you’re wasting time. 

We only get so much time in this life and none of us knows how much we get. 

Millionaires realize that watching TV is not a productive use of your time. You’re basically zoning out and living through someone else’s life. 

I do like to watch some TV, but it’s generally not multiple hours every day. 

Millionaires read a lot.

Reading can be healing, educational, inspiring, and entertaining. 

Reading makes your mind work. As you read the words, you create pictures in your mind. 

Reading can give you new insights, and reading can spark ideas in your mind.

It doesn’t matter if it’s fiction or non-fiction. Find a topic you’re interested and read another book this week. 

Your mind will thank you.

Millionaires don’t look like millionaires.

This one seemed the most interesting to me. 

Like I just mentioned, millionaires don’t spend all of their money on the fanciest cars and clothes. 

They watch what they spend and instead of wasting their money on the most expensive things, they keep their money and buy less expensive things. 

Millionaires understand the value of a dollar and don’t let their dollars slip through their hands.

My friend and I were flipping a house a few years ago, and we needed some lunch. We had been in demolition mode, and were really dusty. We went to a sub shop to eat. A family came in and gave us weird looks. 

I enjoyed it, because I knew we had much more net worth than they did, but I also knew we looked dirty. 

Never judge a book by its cover.

Millionaires use the power of compounding.

Compounding is really the eighth wonder of the world. When you look at the math, and how fast something can grow, it’s astounding.

For example, you put $500 a month in an index fund or a cheap mutual fund, or you put $500 under your mattress. 

That’s $6K per year. 

In 40 years, you could have $240K under your mattress or you could have over $1.6M at an 8% return if you had invested it. 

$500 a month is a car payment today. You can afford to invest $500 a month if you’re paying that for a car. 

People don’t take advantage of this, because they don’t always believe the numbers. The math works though. 

I’m a millionaire today – primarily because of compounding in my 401k.

Millionaires are patient.

This one is the most difficult for me. Anyone that knows me knows that I am not a patient person. 

I like to get things done. I like to get them done as efficiently as possible. I don’t like to waste time. 

I especially didn’t like to waste time driving. When I moved back to Ohio from Los Angeles, I was driving a lot. I had moved to a new town and needed to drive a decent distance in order to see friends and family. Being accustomed to driving in LA and never getting a ticket, I had forgotten how strict the cops were in Ohio. 

Within a year I had accumulated six speeding tickets. I received a letter from the state of Ohio saying they would suspend my license if I got one more ticket.

Luckily, I drive a bit slower these days and do a lot less driving. My patience is growing as I get older. 

I do finally see how patience pays off. I see how my money grows when I don’t touch it. I see how my career grows when I stay at the same company. 

Patience is the key.

The old story of the tortoise and the hare is accurate. 

The tortoise always wins the raise, not because he’s slow, but because he’s patient and stays focused on this one race the entire time. Meanwhile, the hare is fast but is prone to distraction. 

Strive to be the tortoise on your way to becoming a millionaire.

These were the habits that stood out to me. Being a millionaire can seem impossible if you’re in debt and don’t have much income, but it’s not impossible. 

Actually, it’s very possible if you decide to get intentional with your money. It’s all about consistent behaviors over time. You’ve got to build small habits today that will make being consistent easier.