Find out how real millionaires think and what are the reasons for their success
Is there a wealth secret you may not be aware of? Perhaps this is the question that frequently arises in the mind of the average person on the street. An honest answer to that question is a definite yes. A millionaire is a totally different breed from the rest of the population. They have a different mindset about money, the value of money, and how money can be made.
One of the ideas that these people subscribe to is that money is just a number, a tool and a vehicle that will lead them to discover even more money. They are not obsessed with the things money can buy them, but with how money can be used to make more money before they even think about using it for pleasure. This is known as delayed gratification, something the general public is doing, backwards. In short, to think like a millionaire, you must have a strong desire to earn money while maintaining a modest life that allows you to invest more. You must also be willing to put your dreams of spending and luxury on hold for the highest return.
The same applies to your attitude towards taxes and the interest rate. Smart millionaires know when to invest their investment earnings for more returns before they actually pay their taxes, like a ‘tax-deferred’ system. But then again, they also have access to very talented financial people to help them make financial decisions and navigate the tax system. This is another difference about millionaires. They use the money to buy other people’s time to earn more money since they can only work so many hours in a day. This is known as leverage.
Leverage can also take place in the form of investments that millionaires set up. Average families have a property or two in their name, if they’re lucky. Millionaires own as much property as their cash flow allows, knowing that these properties can pay for themselves in the future. In fact, many wealthy people owe their fortunes to investing in real estate and land.
To say that millionaires have high priorities about what their money should be doing to earn more cash, does not mean that they are debt free. Rich people are not qualified to borrow money and be in debt like most of us. The only difference here is that millionaires consider their debts ‘good debt’ since the money will go towards investments when on the other hand, our parents have always taught us from a young age that debt is bad.
While the rest of the world worries about not working hard enough for their money, millionaires always work smart knowing that they can’t get rich by working hard. They are really good at creating stream after stream of income that will continue to support them without them having to work on it after a while. These include income from your many properties, dividends from your stocks, and other types of investments.
A common similarity in all millionaires is that they are very careful about spending money. While their mind thinks big, they are very smart when they spend. After all, all self-made millionaires need to save to invest when they started. They are also bold and brave enough to make major financial decisions that can make or break your fortune. Their perspective on money allows them to shed the fear of losing it on poor investment decisions to profit from riskier investments and business ventures that most people are too afraid to touch.
