MILLIONAIRE HABITS

When I started getting serious about my money (back in 2011), 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.

44% of Millionaires wake up at least 3 hours before their job starts.

(source: Tom Corley research)

Snoozing your alarm clock one more time might feel good in the moment, but it's causing unnecessary stress as you rush around trying to get to work on time.

In addition to less stress, you'll be more productive if you're one of those people who spends the evening watching TV.

When you wake up early, you'll go to bed early, causing the window to watch TV in the evenings to be smaller.

88% of Millionaires read at least 2 books a month.

(source: Tom Corley research)

Reading is 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.

If you don't have time to read, then listen to audio books.

8 out 10 Millionaires come from families at or below the middle-class income level, and 79% didn't receive an inheritance.

(source: Chris Hogan's Everyday Millionaires)

Millionaires are self-made.  They don't rely on money from family.

They work hard.

They are proactive.

They don't make excuses.

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. 

Millionaires don’t look like millionaires.

64% described their homes as modest.

84% said they never gamble.

(source: Tom Corley)

The book, The Millionaire Next Door, was eye opening.

If you believe millionaires live in mansions and drive exotic cars, you need to read this book.

Millionaires 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.

Never judge a book by its cover.

Millionaires use the power of compounding.

79% of Millionaires reached millionaire status through their employer-sponsored retirement accounts.

(source: Chris Hogan's Everyday Millionaires)

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 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.