Did you know that more than three-quarters of today’s millionaires are self-made and started as middle class or lower? Also, data shows that it takes most people an average of 32 years to reach their first million. Most millionaires are not an overnight success. As a result, up-and-coming millionaires learn from rich people’s habits to accumulate wealth. From selecting a high earning career to building multiple streams of income, millionaires are carving sustainable paths to wealth.
However, one of the most crucial rich people’s habits that millionaires have added as a wealth strategy is saving. According to a Survey of Affluence and Wealth conducted by the Harris Group, millionaires save a considerable chunk of their money, especially for retirement.
So, how can you incorporate this stellar habit into your wealth-building strategy? Take a look at our tips below:
Make Savings the Number One Priority
Millionaires don’t spend first and save what is left; they do the opposite. Before you even receive your paycheck, determine the percentage of your income you want to save, and make sure it’s the first amount taken out once you are paid. You can even set up automatic savings deductions, so you aren’t tempted to bypass this step.
Have a Plan
An excellent rich people’s habit that millionaires have is keeping an eye on future goals. They are intentional about their money and are disciplined enough to create a plan for the future while sticking to it. Pull out your calculator and determine how much money you will need to save each month to reach your ultimate savings goal.
Don’t Try to “Keep up with the Jones”
High-wealth people are not concerned about impressing family, friends, or strangers. Their satisfaction lies in financial security. This attitude frees them up to truly embrace rich people’s habits that keep them from spending on material items they don’t need and experiences they don’t value. You can save a good amount of money by refusing to get caught in the “social status” rat race.
Ditch the Credit Cards
Nothing can zap your money faster than credit card debt, and the corresponding interest rates. Credit card usage can cause you to spiral out of control quickly. As a result, millionaires are all about eliminating debt and maximizing their income. That’s why it’s crucial to make paying off any debt you have a priority, and then avoid using these cards altogether. They can make you think you have more money to spend than you do.
Save a Large Portion of Your Income
Do you really need to spend 80 to 90 percent of your income? People who hit millionaire status have done what they can to reduce their spending percentage. For many, this will be the fastest way to become a millionaire. See where you can cut expenses. Dial back on takeout, forego the morning latte, avoid name brand designers, and always be on the lookout for deals and discounts. These steps will allow you to save a more substantial portion of your income. You can then invest it or even take advantage of a low-interest bearing savings account.
Set up Multiple Streams of Income
The data shows that most millionaires have multiple streams of income. See how you can set up your own side projects that bring in additional revenue. You can start an online course, write a book, get into affiliate marketing, or invest in rental properties. You have endless options when it comes to setting up additional income streams.
Are You Ready to Adopt Rich People’s Habits?
Saving like a millionaire doesn’t have to be complicated. The main rich people’s habit that will help you save like a millionaire is having discipline. Those with a high net worth are committed to making their money work for them. The best part about this is that you can start today!
Want additional resources to help you adopt better money habits? Learn more about the Money Coach University Library, where you have access to all of the books I’ve written to help you eliminate debt, perfect your credit, buy your first home, earn your first million, and more.