A few days ago I shared another three habits that will make you a millionaire. Today it’s time for the last three.
Live below your means. It seems so simple, yet it’s not easy. You cannot become a millionaire if you spend more than you earn. Period. It’s against the law of math and against the laws of nature.
My wife quit her job a month ago. I also downsized my day job income, and I took a big financial commitment joining an expensive mastermind (the fee is as high as my monthly mortgage payment). We still have means to support ourselves, but this situation literally freaks me out.
It doesn’t freak out most people. And that’s why most people are NOT millionaires. They are fine with financing their vacation trips or car purchases by creditors.
You cannot accumulate money if you spend it faster than it’s coming. You can earn 10 million dollars, but you still won’t be a millionaire if you spend it all and then borrow some more to satisfy your expensive tastes.
Live below your means. It’s simple.
8. Build Routines.
Successful people recognize the importance of habits. James Altucher is the only successful person I know who argues against habits… and he still practices them, but calls those disciplines differently. 😀
You surely have heard of morning routines of the rich and famous. And I assure you, they are not the only routines they stick with. They have commuting routines, work routines, exercise routines, evening routines, eating routines, outfitting routines (Obama and his suits) and more.
John D. Rockefeller had his day highly structured. He woke up at the same time, performed the same activities in the morning, went to the office, worked, was back at home at the same time, had a dinner with the whole family, and so on.
It’s not an accident that millionaires are adamant about their habits. Daily routines spare you brainpower for other tasks. If you don’t mull over what you will eat, how you will work or what you will wear, you will have more willpower and energy for other decisions in your life.
“Your network is your net worth.” — Tim Sanders
It’s not only about who you know, albeit it’s of course important, but also how strong and deep a relationship you can maintain with them. It’s better to have a few deep friendships with people who would have given their lives for you than to have a zillion “friends” on Facebook who wouldn’t have loaned you a dollar if you were in financial need.
The more I’m in business, the more I’m convinced that money is a function of connections. When I started publishing my books, I tried to do everything on my own. And my results were microscopic. When I started cooperating with others, my reach magnified instantly.
When a friend redesigned all my covers, my book sales suddenly tripled. When my mentor promoted my book to his list, it became a bestseller. When a friend with the biggest Kindle-related site in the world recommended my book advertising services, clients started to arrive in numbers I couldn’t manage.
“You are the average of the five people you spend the most time with.” — Jim Rohn
Networking is not just good for business. Jim’s quote is true; that’s why millionaires are very picky about whom they network and spend time with.
As little children mimic their parents, you mimic people you spend time with. It’s subconscious, and if you want to manage this process it takes a lot of attention and energy.
It’s much easier to surround yourself with people you want to be like.
By any means, I’m no millionaire. But I’m steadily getting there. And I’m getting there by practicing the habits enumerated in this series.
In the last five years I doubled my income, created several new income streams, purchased the first house and increased my net worth.
When you have good habits, reaching your destination is just a matter of time.