Millionaire status is something most people like to dream about, yet reaching it requires dedication and a strong mind-set. Stories of individuals growing their wealth from nothing provides inspiration to people the world over. In Australia, probably one of the best-known stories in today’s public eye is Kogan.com owner Ruslan Kogan. Growing up from humble beginnings Kogan has now amassed a fortune through numerous companies since his first venture at age 10, recycling old golf balls to golfers.
Yet, how does this help us save money? There is a saying that goes: “Rich people stay rich by living like they’re broke; broke people stay broke by living like they’re rich.” Across the world millionaires range from small business owners to CEO’s of large companies, but the one thing that all of them have in common is their millionaire mind-set when it comes to managing their money.
Millionaires who have achieved their wealth through will power, hard work and determination don’t generally spend their money on pointless items. The owner of Ikea, Ingvar Kamprad (worth $30.6 billion) for example drives an ancient Volvo estate and travels with Easyjet Airlines. Then there are others in this billionaire earning bracket who wear ordinary clothes and even hunt around for more deals than our own Buckscoop deal hunters. Many of these people would argue that they've learnt that material things don’t have any real value and it's this perspective which makes the millionaire mind-set a great example for the rest of us on smaller incomes to follow.
Rather than waste your time feeling jealous or envious of their wealth, you can learn a lot by adopting their thinking patterns and managing the income you currently earn to make yourself better off. If you can manage your money as well as millionaires do, you'll immediately promote yourself into a better financial position.
Here are five things you can do to align your mind-set with those of these types of millionaires.
Set Yourself a Goal
Creating a goal gives you motivation and assigns meaning to the value of your money. Don’t just save because it’s the right thing to do, save because you are working towards retirement, a new car, a deposit on a house or anything else you want in your life. Successful people have goals and these are what drive their money management and keeps them from spending frivolously on pointless things.
Think about what you want to achieve in 20-30 years. Do you want to be retired? Get out of debt? Pay for a child’s education? All of these are goals that you need to work towards, so every action today is in an effort to bring that goal closer to a reality.
Questions Every Purchase
The smart millionaire will think before they buy anything. The mansion, the cars and the weddings all go under careful consideration as to how that purchase will affect their wealth. Whenever you consider buying something (big or small) try asking yourself three questions.
- Does a friend have this which I could borrow?
- Is this the best price or can I find it cheaper elsewhere?
- Is this purchase something I really need?
Impulse buying is always troublesome because it usually leaves you with something you don’t really need, you hardly use or you could have bought it cheaper elsewhere. Patience is a virtue.
Waste Not, Want Not
A great habit to get into is to always think about how you can recycle objects for new purposes. A number of my posts recently have been about how to avoid throwing away food or shopping more efficiently to recycle perfectly usable items. If it still has some usefulness, keep it to reuse, as long as its not going to add to general clutter around the house.
Ideas to get you started are:
- Use older cooked meats to make stews
- Freeze excess food to be reused at a later date
- Swap items of equal value with friends and family
- Sell old mobile phones rather than throwing them away
- Recycle envelopes and junk mail into shopping list paper
- Convert shoe or delivery boxes into under sink organisers
- Pass older magazines on to friends or keep them as coffee table material
The millionaire mentality towards things like these allows them to keep more cash for important purchases rather than wasting them on perfectly reusable items.
Invest in Education
Besides the dedication to being resourceful and smart, millionaires will also always be investing into themselves through the form of education. This could come in numerous forms, from online courses on how to manage money, or watching documentaries about the world we live in, to simply reading a good non-fictional book. Life is an educational experience and the more you learn the richer you will feel. Reading a blog such as Buckscoop’s can enlighten you in multiple ways on how to save on a daily basis. So a regular check back here can open your eyes to plenty of new saving techniques and move your general mindset towards these kinds of topics.
Probably the most important point of all is to remember to believe in yourself. Not many people became millionaires through not believing in themselves. Imagine if Richard Branson a successful record sales man went to British Airways before Virgin Airlines and said he was going to build a successful airline company. They would have laughed at him saying he didn’t stand a chance and offered him a nice hot cup of get stuffed. If he didn’t believe in himself he probably would never have strived forward to prove them wrong.
What you need to remember is that everything that exists in our man made world started in the imagination of another human, be it a kite pulling surfers across the ocean, a glass building or the simple t-shirt you’re wearing now. Thinking like a millionaire wont make you one by itself, but adopting their mind-set will hopefully bring you closer to achieving your goals, such as creating an emergency fund for example.
The famous French philosopher and mathematician Rene Descartes, (also known as the Father of Modern Philosophy) once said; “I think therefore I am.”
Finally to leave you with some motivation and inspiration, take Francis of Assisi’s quote with you into the day; “Start by doing what’s necessary; then do what’s possible; and suddenly you are doing the impossible.”