12 Millionaire Money Habits You Can Adopt Today

If you think that the biggest difference between the rich and the poor is knowledge, or luck, or inheritance, you’d be wrong.

The biggest difference?

Habits.

Things we do subconsciously on a daily basis, and for the 99% of people who wish they were wealthier, there are small things you could change, that’ll have a huge impact.

Here are 12 money habits of the rich that you can adopt today.

Don’t Leave Money Sitting Idle

Building wealth requires not sitting on your money.

You hear wealthy individuals talking all the time about being “cash broke.”

Does it mean they’re actually broke? No.

It means they never keep large sums of money lying around. It’s the money-in, money-out ideology.

Money needs to be working for you if you want to reach the levels of truly wealthy individuals. In other words, it needs to be invested into assets.

You can’t keep it idle, because inflation will eat away at your wealth.

Focus on The Signal, Not The Noise

The most important money habit of wealthy families is maintaining a top-down view of your personal budget.

Focus on a year-over-year increase in total net worth, and don’t waste a considerable amount of time on the details.

Millionaires have sophisticated professionals who are working on the details, and who can dig deep as needed.

It’s all part of keeping your time free for the important stuff.

Making money and being happy.

Live Below Your Means

The key to lifelong financial success is to always live below your means.

The key to this? Disposable income.

This one aphorism has made many lives richer, deeper and more fulfilling.

Don’t spend your whole life trying to finance a life you can’t afford.

All these terrible spending habits just to try to keep up with financial peer pressure.

Is it really worth it? Didn’t think so.

Don’t Pay Interest

Avoid paying interest at all costs.

I’ve had so many people tell me this over the years, and it’s true.

When you are paying high interest rates over a long term, you might end up paying double or triple the value of that quickly purchased sale item.

Pay very close attention to the interest rates when taking out loans.

• A mortgage

• A car loan

• Student loans

You name it, interest will rob you blind.

Monitor Income And Expenses

Financial freedom is a function of cash flow.

A good practice is to consistently monitor sources of income and expenses and to budget effectively.

If you spend every dollar of income on personal consumption, then you have no ability to build wealth through savings and investment, and guess what?

You’re stuck forever in the exact same place.

It’s not how much you earn, it’s how much you keep to build your empire.

Value Your Time

If the time it takes to clean your house is more valuable than the cost of bringing in someone to help you clean your house, outsource it.

If I can make more money in the two hours it takes me to go to the grocery store, shop and get home, it would be more cost effective for me to order it online and pay the extra delivery fee.

Time is money, my friend.

Always consider the opportunity cost.

Set Life Goals

One essential practice that is critically important is to set life goals and create a financial plan to meet those goals.

Keeping this plan in mind as daily decisions are made and regularly reviewing progress toward that plan is crucial.

Your why is important.

Why do the things you’re doing?

It’s this that will keep you going during tough times.

Stick to A Budget

I think it starts with doing the basics right, and for many, that’s knowing, and sticking to, a budget.

It’s easy to lose track of where your money is going on a monthly basis when so many expenses are set up to be paid via autopay, and no one carries cash, so it’s easy to lose that sense of what’s being spent.

Examine that and see what you can tighten up, or even what additional funds you can save.

Invest Regularly

Consistently invest an amount that is comfortable for your circumstances.

When it comes to investing, habit and consistency are paramount.

Consider automating your deposits directly from your earnings into your investment account, and dollar cost average into a diversified portfolio containing:

• Stocks

• ETFs

• Real Estate

Start this practice early, and increase your deposits as your earnings increase.

Choose an amount and frequency that you can commit to for the long term.

Set Short And Long Term Goals

Set realistic financial goals, assess them often and build a plan to achieve them.

Many people want to retire at a certain age, or save a certain amount of money, but without a concrete plan, it’s hard to know if you’re on track to achieve them.

Everyone should establish short-term and long-term goals, track milestones and adjust along the way as needed.

Acquire Financial Knowledge And Skills

Most people don’t realise that your philosophy about anything, including money, regulates your habits, which invariably determine your outcome.

Make it a habit to acquire financial knowledge and skills; then you can build a life of sustainable wealth.

My habits improved significantly when I began to learn about how money could change my life for the better.

I stopped wasting it, and began building for my future, eliminating my bad money habits.

I hope you begin to do the same.

Take Educated Risks

Understand your risk tolerance, and don’t be afraid to take educated risks.

This principle can be applied both in business and with your investments.

It is important to do some research and surround yourself with people who can take you to the next level and help you make an informed decision.

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