You know the saying “big hat no cattle”? Right from a multi-millionaire himself:
“I don’t own big hats, but I have a lot of cattle.” – book Millionaire Next Door.
This is a wise man, saying a lot in those few words. Most people envision the richest and wealthiest of all people as living a grand luxurious life, jetting from country to country, bathed in elegant perfumes, clothing, jewelry, the latest technology, wining and dining with royalty and celebrities.
Of course the networking portion of that may not be far from the truth for some people way up there, but in reality, your average millionaires are some of the most frugal, efficient people you will ever have the pleasure of meeting. Some look like they just rolled out of bed and threw on a couple rags before leaving the house!
You might be thinking, no way. They have all this money, what do they do with it then?
This doesn’t just include the stock market either. They reinvest profits into their own business(es), they take part in other people’s businesses that they’re interested in, they have accounts set aside for their children and grandchildren’s education (quality education comes highly regarded in this group).
They also don’t skimp on services when it comes to finances, like accountants, tax planners, retirement planning, estate planning, business consultants etc. In these instances, you tend to “get what you pay for”.
Start Acting Like a Millionaire
What can you change in your life to start acting more like a millionaire before you become one?
Like we discussed in our last blog, take 10% of your income and save it to start investing. Every paycheck you receive, do this right away and don’t make excuses! While this pile grows, start educating yourself on investments, and if you’re not feeling especially motivated just yet, it doesn’t have to be something boring. Choose something you have an interest in, something you know a lot about already.
“Invest in what you know” – Warren Buffett
Taking these few steps to start might be more than what it looks like now, but once you have these moving along you’ll be well on your way to creating a nice foundation of wealth for yourself and your family for generations to come. In the coming weeks we’ll share more millionaire habits you can adopt for yourself.