I bet you think there are different kinds of millionaires in terms of their habits, right? Well, I’m not going to argue with you because, yes I think so too. But not in this article. Not when I’m presenting details about the kind of life that will ensure your financial freedom. Are you in the lookout for that? Well, if that’s the case then keep reading because it’s time for you to find out things millionaires do each day.
The richest people in the world differentiate themselves from the general population when it comes to spending habits. They spend their money in different ways than most people. Similar to how they differ in how they earn their money, they also implement different habits when it comes to how they use it. Rather than spending money on lavish homes, fancy cars, and luxury vacations, what millionaires do with their money is quite different. Here are ten things that millionaire do every day.
They save a lot of their income.
Being frugal and living in an affordable home enables millionaires to save. They recognize that income isn’t enough — they have to save what they’re making.
John, who runs the personal-finance blog ESI Money and retired at 52 with a $3 million net worth, has interviewed 100 millionaires over the past few years and found that the median millionaire spent $90,000 a year while earning $250,000 in income — a 64% savings rate. Saving it, he said, allows for investment.
While this savings rate might be slightly off because of things like not counting taxes as spending, the main takeaway, he said, is that millionaires “save a large portion of their income.”
If you make $250,000 and spend $250,000, “you are no better off at the end of the year,” he wrote.
They don’t budget unnecessarily.
But millionaires are able to be frugal and save without budgeting. Many of the millionaires John spoke with said they didn’t have a budget.
“While it was not expected, the reasons millionaires don’t need a budget makes sense — they make a lot and have self-control,” he wrote in a blog post. “In other words, they make a ton, spend only a portion of it, and have plenty left over. Who needs a budget?”
He added: “A budget is great for the early phases of a financial plan, but if you can grow your income and develop self-discipline not to spend, it’s not vital to your success later on.”
They take on a side hustle.
Many millionaires favor moonlighting, or taking on a side hustle, according to Stanley Fallaw, who said it’s a good way to explore options while remaining employed full time.
“Those who are able to create multiple opportunities to generate revenue, who can translate hobbies into income-producing activities, will be successful at becoming millionaires next door in the future,” she added.
John also found that millionaires develop multiple streams of income, enabling them to grow their net worth exponentially, he said.
They invest in real estate.
One side hustle they’re prone to taking on once they’ve built wealth is investing in real estate, according to John.
“Investing in real estate seems like a natural result once the basics are covered and excess cash is generated,” he wrote.
According to Dana Bull, a real-estate investor, the financial advantages of investing in real estate are plentiful: positive cash flow, appreciation in terms of housing values, leverage, and tax advantages.
They treat their colleagues with respect
Every employee knows they should treat the boss with respect. But not everyone prioritizes treating their colleagues and subordinates professionally, too.
Bloomberg
Multi-millionaire banker Bill Winters says the best advice he ever received was from his father, who told him that the best employees are kind to people at every level of an organization.
“Make sure that you treat the next level down — whether it’s the assistants or the PA, whatever — with just as much respect as you would anyone,” says Winters.
They don’t let setbacks stop them from growing
In “Option B,” Facebook COO Sheryl Sandberg and organizational psychologist Adam Grant argue that successful people share one crucial trait: resilience.
Sheryl Sandberg and Adam Grant speak at the Commonwealth Club in San Francisco about their book “Option B.”
Sandberg, whose husband Dave Goldberg died unexpectedly in 2015, and Grant say that the ability to cope with and grow from immense tragedy or failure can make or break someone’s career.
Grant says everyone can become more resilient by doing a few simple exercises.
For example, he recommends keeping a journal of contributions you make to others to develop a better sense of how important your work is, something those struggling to overcome personal obstacles can forget.
They take their social media presence seriously
Serial entrepreneur and “Shark Tank” investor Daymond John says one of his best strategies for succeeding at work is to make sure your social media presence is authentic.
It’s easy to use social media as a simple means of self-promotion. But people who could help you in your career or end up providing you with new opportunities down the line aren’t going to be impressed.
Daymond JohnDavid A. Grogan | CNBC
Instead, use social media to communicate who you are and engage with others in your field.
“Be very honest with yourself, especially today with social media,” John says.
How do you know you’re doing that right? If you can describe yourself in five words or less, you’re onto something, John says.
They make time to work on projects they’re passionate about
On a recent trip to a furniture “mega-store” in Nebraska, longtime friends Bill Gates and Warren Buffett talked about the ways success is enabled by passion.
“Being successful at almost anything means having a passion for it,” says Buffett.
Rich people always keep their goals in sight.
“I focus on my goals every day.”
Rich people who agree: 62%
Poor people who agree: 6%
Not only do wealthy people set annual and monthly goals, but 67% of them put those goals in writing. “It blew me away,” says Corley. “I thought a goal was a broad objective, but the wealthy said a wish is not a goal.” A goal is only a goal, he says, if it has two things: It’s achievable, and there’s a physical action you can take to pursue it.
And they know what needs to be done today.
“I maintain a daily to-do list.”
Rich people who agree: 81%
Poor people who agree: 19%
Not only do the wealthy keep to-do lists, but 67% of them complete 70% or more of those listed tasks each day. https://3b3135ef999a713d705c151d2c6f9836.safeframe.googlesyndication.com/safeframe/1-0-38/html/container.html
They don’t watch TV.
“I watch TV one hour or less per day.”
Rich people who agree: 67%
Poor people who agree: 23%
Similarly, only 6% of the wealthy watch reality shows, compared to 78% of the poor. “The common variable among the wealthy is how they make productive use of their time,” explains Corley. “They wealthy are not avoiding watching TV because they have some superior human discipline or willpower. They just don’t think about watching much TV because they are engaged in some other habitual daily behavior — reading.”
They read … but not for fun.
“I love reading.”
Rich people who agree: 86%
Poor people who agree: 26%
Sure, rich people love reading, but they favor nonfiction — in particular, self-improvement books. “The rich are voracious readers on how to improve themselves,” says Corley. In fact, 88% of them read for self-improvement for 30 minutes each day, compared to 2% of poor people.
Plus, they’re big into audio books.
“I listen to audio books during the commute to work.”
Rich people who agree: 63%
Poor people who agree: 5%
Even if you aren’t into audiobooks, you can make the most of your commute with any of these commute-friendly self-improvement activities.
They make a point of going above and beyond at the office.
“I do more than my job requires.”
Rich people who agree: 81%
Poor people who agree: 17%
It’s worth noting that while 86% of rich people (compared to 43% of poor) work an average of 50 or more hours a week, only 6% of the wealthy people surveyed found themselves unhappy because of work.
They aren’t hoping to win the jackpot.
“I play the lottery regularly.”
Rich people who agree: 6%
Poor people who agree: 77%
That’s not to say that the wealthy are always playing it safe with their money. “Most of these people were business owners who put their own money on the table and took financial risks,” explains Corley. “People like this aren’t afraid to take risks.”
They watch their waistline.
“I count calories every day.”
Rich people who agree: 57%
Poor people who agree: 5%
Wealthy people value their health, says Corley. “One of the individuals in my study was about 68 and worth about $78 million. I asked why he didn’t retire, and he looked at me like I was from Mars. He said, ‘I’ve spent the last 45 years exercising every single day and watching what I eat because I knew the end of my career would be my biggest earning years.’ If he can extend his career four to five years beyond everyone else, that’s about $7 million for him.”
And they take care of their smiles.
“I floss every day.”
Rich people who agree: 62%
Poor people who agree: 16%
Conclusion
Millionaires know the difference between needs and wants. But this isn’t limited to just them, it’s for all of us who aren’t millionaires. By being frugal in relationships, you have an opportunity to change your lifestyle and improve your financial situation.