No, being like a millionaire doesn't mean driving around in a ferrari, drinking expensive champagne and splashing your cash on luxury goods. In fact, that's a pretty good way to lose your money. In fact, if you look a the lifestyles of many millionaires you'd be surprised just how frugal they are. It's all about getting into the millionaire mindset.
Have a Diverse set of incomes
Even though many millionaires are known for running one company, if you look into their finances you'll see they actually have quite diverse incomes. They'll earn money from a salary, investments and running small side companies. Millionaires know that a single source of income can't be relied on. It could disappear at any time.
Have a Budget
I'm not talking about a budget that tracks every cent. Sure, if that's something you enjoy doing, then go for it- it'll probably help. I'm talking about a budget that tracks how much money you're brining in and the general areas where your money is going.
There is no point in burying your head in the sand. You need to know where you are. Millionaires are really good at tracking spending and making sure they always have a clear idea of their finances.
Live within your means
You need to understand where you are in the lifestyle scale. If you have a few million dollars laying about, buying a $100k car isn't going to change your financial status. But if you're living on less than $100k a year, it most certainly will!
Millionaires know how much they can spend. They can afford to live a lavish lifestyle. Don't fall into the trap of trying to live a life of luxury. You'll just end up in debt.
Invest
The easiest way to make money is to invest the money you already have. Millionaires don't just invest in safe low income stocks. They will also invest in new businesses and ore risky investment products. Personally I think the best way to make money is to invest into a new company or business. It provides the biggest upshot. Sure there is a lot of risk, but that comes with the territory of the millionaire mindset.
Get more tips…
If you're looking for more ideas on how to get into the millionaire mindset, then I highly recommend you read two of my favorite books on the subject. They completely changed the way I approached personal finance and making money. The Millionaire Fast Lane will completely reset your brain – you've been taught the wrong things growing up, and this book is all about changing your thinking. The second is The Education of Millionaires. It's got a lot of easy to digest tips on changing your life to be more entrepreneurial.
Having a diverse set of income is what we’re working on the most at the moment. Not only does it give us more overall income, it means we have more flexibility with where we’re earning, so even if we lost one of our income sources we still had the same amount.
Tristan