Many people incorrectly think that becoming rich is an impossible dream. When they mentally picture millionaires, they think of big spenders living lavish, glamorous lifestyles. In fact, as clearly shown in the research done by Stanley and Danko in The Millionaire Next Door the average millionaire is a very different type of person.
The average self-made millionaire is a middle-aged or older person who drives a moderately-priced car, is married twenty years or more to the same person, goes to church, owns or runs a business, has kids or grandkids, works ten hours a day and loves it. In other words, the typical American millionaire is an ordinary person who has achieved wealth and success over time, by working, planning and saving for it, and by practicing the strategies that millionaires the world over practice day in and day out. You can do the same!
The US free enterprise system creates opportunities like no where else
in the world. We all have the freedom to take advantage of these opportunities.
No matter what your background, you can become a millionaire! The eight
powerful strategies below can help you develop a workable plan to reach
your financial dreams.
Strategy #1: Treat money as a servant, not as a master
Jesus Christ said, "No one can serve two masters. You cannot serve both God and money." Money is a wonderful servant, but a terrible master.
Financial expert Robert Ringer cautions in his book Million Dollar Habits,
"Instead of possessing money, what happens when an individual's goal
is money is that he becomes possessed by money. Instead of keeping money
in perspective, it becomes an obsession." An obsessive pursuit of
financial riches will likely bring other problems, many significant in
nature. For example, many people have sacrificed their health to gain
wealth, only to spend their wealth trying to regain their health. A proper
outlook on money is needed if you are truly to become healthy, wealthy
Strategy #2: Form wealthy habits
Have you ever wondered how some people become wealthy so easily? No matter what they do, money seems to gravitate to them. They have learned the millionaire’s secret of making a habit of making money. They live in such a way that making money becomes as natural and habitual as eating or sleeping. They habitually live in a state of wealth, demonstrated by their consistent actions. They save, dream, plan, invest and give in a never-ending cycle.
It has been consistently shown that the three most important habits you must adopt if you are to build a foundation of wealth and financial security are:
1) Spend less than you earn
3) Invest your savings
Strategy #3: Find Work You Love
It has been proven time and again that the surest way to succeed financially
is to love your work. Most of America's millionaires made their fortune
not by running after profit, but by throwing themselves into work they
adored. They viewed their work as a mission, and riches became a by-product.
In order to truly find work you love, you must know what you want out
of life, what you are most passionate about, long-term. One financial
expert did a study of self-made millionaires to find out what set them
apart from others. He concluded that the single most distinct quality
about these wealthy individuals was their love of and absorption in their
work. He stated, "Long before they knew whether they'd be paid enough
to support themselves, they were caught up in their work and doing far
more of it than they realized."
Strategy #4: Set Goals
The famous multi-millionaire Napoleon Hill, who wrote down Andrew Carnegie's secrets to wealth in his best-seller Think and Grow Rich, aptly stated: "There is one quality which one must possess to win, and that is definiteness of purpose, the knowledge of what one wants, and a burning desire to possess it."
Conversely, the failure to set goals is the surest route to financial failure. Indeed, the refusal to set clear, specific goals is the most common feature of the bankrupt and financially broke.
According to many studies conducted in the US, more than 95 percent of the people who consider themselves financial failures lack a financial plan. Conversely, the vast majority of those that are financially successful have a well thought out, realistic financial plan.
In addition to financial goals, those that become truly wealthy typically
have goals for all areas of their life. In fact, there have been numerous
studies that support this, and the top 3% of our society are the major
goal setters, and their goals cover all areas of life.
Strategy #5: Practice Integrity in All Matters
One of the fastest ways to destroy your fortune and reputation is to
engage in unethical practices. No matter how wealthy you are your wealth
is never secure unless it has been built on a foundation of integrity.
Many of the richest men in America have seen their financial empires disintegrate
overnight because of unethical practices. To keep your wealth safe and
growing, build your financial fortress and your life on a foundation of
Strategy #6: Invest in Your Education
Investing in yourself and more particularly your education not only brings high yields, but is also impervious to inflation, recession, and market crashes. Material possessions and investments can be stolen, lost, or destroyed. As the great entrepreneur Henry Ford stated, "If money is your hope for independence, you will never have it. The only real security that a man can have...is a reserve of knowledge, experience and ability." Another way to say it is, the more you learn, the more you earn.
You can put the wealth strategies of millionaires to work for you. The
knowledge, habits and practices that have helped them become wealthy can
also help you reach the same goal!
Strategy #7: Develop a “Get Rich Slowly Mentality”
Ask any of the truly wealthy and you’ll rarely find anyone that
subscribed to the “Get Rich Quick Mentality”. The wealthy
understand that the specific knowledge and expertise required to gain
significant wealth takes time to develop, and that most wealth creation
vehicles are complex and take time to truly get on a predictable path
to wealth. Time is your greatest ally in gaining wealth. Having an unrealistic
belief that you can get rich quickly usually results in disappointment
Strategy #8: Be Willing to Take Intelligent Risks
It is hard, if not impossible, to find a multi-millionaire who has not embraced the challenge of intelligent risk taking. Whereas taking risks without careful consideration of your personal circumstances and a healthy dose of realism can be akin to gambling, intelligent risk taking will separate you from the many who dream of becoming wealthy but never get off first base. The old rule of thumb, the higher the risks the greater the reward, is often true. As long as you learn what you need to know to mitigate risks, taking intelligent risks can lead you to much greater success than you would ever realize if you tried to "play it safe" all the time.
We hope that you have found this article useful and we welcome your comments and suggestions.
Copyright © 2004 by Key Business Institute, Inc. All rights reserved.