- Discipline – Millionaires have ability to control themselves and their urges to purchase things. They spend their money with intention and are able to do so over a long span of time. This allows them to manage their cash flow to save, invest, and make their money work for them.
- Avoid Excess – Sure a millionaire will splurge occasionally, but their natural tendency is to keep ahead of their consumption. They avoid consumer debt like the plague and choose to live below their means in order to grow their assets. Paying interest on debt will erode your ability to save.
- Save Automatically – Millionaires pay themselves first. That means saving a good portion of their paycheck even before it has time to settle into a checking or savings account. These savings go into a separate accounts that are off limits (eg .IRAs), or other investments like Sharebuilder which allows you to purchase equities or funds automatically every week. Another popular automatic savings bank is Capital 360 Savings (formerly ING Direct).
- Invest in Assets – A millionaire is focused on purchasing assets… not liabilities. Popular assets include real estate, equities (stocks), and businesses. Remember Rich Dad’s lesson: Assets put money in your pocket, Liabilities take money out!
- Like to Read – Millionaires are inclined to read and continually increase their knowledge over time. This isn’t limited to personal finance, but also personal development, history, and philosophy.
- Value their Time – Millionaires understand that time is precious. They may spend their money to increase access to their own time by hiring help to perform tasks. This focus allows them to accelerate their time spent on meaningful activities with family, building assets, or doing work they love.
- Engage in Hard Work – Finally, millionaires are probably some of the most driven individuals you will find. They are passionate about the work they do and not afraid to be the best in their field. This habit naturally places them in positions of higher earnings and favor within the organizations that employ them (or for themselves if they are self-employed). Ever hear the saying, “You earn exactly what you deserve!”? Think about it. When it finally rings true, you will be ahead of most people.
- Donate – Millionaires express their passions through donations to their favorite philanthropies. By giving, they are not only helping others, but also helping themselves in the process. It’s a strange phenomenon, but millionaires swear that the more they give, even more will come back to them. Give it a try. You don’t need a million dollars to make a difference.
How many of the 7 Crucial Habits that Millionaires Keep are you already practicing? Which ones do you need to start on?