The United States added 2,251,000 new millionaires from 2019 to 2020. In a single year, 2.2 million people became millionaires, which made the total number of millionaires in the US over 20.27 million. We are all told that becoming a millionaire is more like a dream than reality, but when over 2 million become one in a matter of year, you know that it’s a practical goal that anyone can achieve. Wherever you are in the world, the internet has made it much easier to build a successful business that could raise you to millionaire status. It’s about putting in the time and effort.
I am sure that that there are plenty of you who are watching this video are going to join that list since you are interested in investing, business, and growing yourself mentally, spiritually, and physically. Just because you are poor today doesn’t mean you are going to stay like that forever, you don’t choose to be born in a poor family, but it depends on you whether you want to stay poor or not. Financial independence is not something that happens to you overnight, it’s a series of good small daily decisions that slowly lead to financial success. So, how do you know that you are on the right path? What are the signs you are going to be one of those millionaires in the coming future? So let’s take a look at 5 habits or principles that lead to financial success.
First one. You are playing the game of money on offense if you were to play any game strictly on defense, what are the chances of you winning that game? Extremely low or none, right? And yet, most people play the game of money exactly like that. Their goal isn’t to be at the top and make millions. That seems like an impossible goal for them. They just want to pay all the bills and stay out of debt. It’s not a bad strategy, but the problem with it is that if your goal is too simply to be above the water, that’s the maximum that you will get. Of course, there are exceptions. Some people save 5 to 10 percent of their income. Invest in the stock market and hope that their portfolio grows by 6-7 percent. So that when they get old, they will have something to rely on. And that’s better than nothing. However, that’s still not enough. You can’t lock yourself into a comfort zone and expect to get financially independent. If you want to create real wealth, you should stop playing defense and start playing offence. You should start attacking as aggressively as you can. Of course, not every single of your attacks is going to be successful, but you will increase your odds of winning by a huge margin.
2. You think big Back in the days when I was a broke college student who barely paid his bills. I always use to think about how I can minimize my expenses to save more. Even if I would save an extra 100 dollars, I would consider that a lot. But at some point, I realized that there is only so much I can save. There is a limit to how low I can go. At the end of the day, there are some fixed expenses that I cannot avoid, such as rent. So the question that was in my mind – should I focus on saving some extra pennies or should I rather focus on earning 10x the amount I do now? That’s when I realized that I was on the wrong path all that time. There are people who waste hours and hours just to find a bread that’s 20 cents cheaper, and then there are people who would rather waste that time maximizing their income. The question is – which one are you?
3. You admire other rich people I have friends who despise rich people. Whenever we discuss the big tech, they would say – look at Jeff Bezos, look at how many people are suffering because of him! His employees are suffering, and he doesn’t care! He is probably the greediest person in the world. Or when we would talk about Tesla or SpaceX, they would say – Musk doesn’t care about the environment or the humanity! He is a greedy capitalist who only cares about himself and his net worth. Let’s say hypothetically. They only care about themselves. The question is – so what! Do you care about humanity more than he does? He is at least doing something, even if that’s out of self-interest. He is positively impacting the world, he is helping the world to move to sustainable energy, and in return, he is making billions. He (Bezos) transformed the way we shop forever by making it affordable for anyone to order stuff online. What about you? How are you making the world a better place? Sitting at home and watching Netflix and just criticizing everyone who solves a problem and becomes a billionaire isn’t helping anyone. If you don’t want to work at Amazon, you don’t have to. If you don’t believe in Tesla’s mission, you don’t have to! Or when a billionaire donates a few hundred million dollars. You see people criticizing him for not donating enough. Come on, dude! How much have you donated! Probably not even 1 percent of what he did. How about we appreciate what he has done! Even if it’s a tiny percentage of his wealth. Or the best one – if I would be as rich as him, I will donate dozens if not hundreds of billions of dollars? If you are so generous, why aren’t you working as hard as him to become a billionaire to donate that much money? You spent your youth chasing girls and watching Netflix while that guy spent his youth building a successful business, and now for some reason, he has to donate all that money. You had the choice to take some risks, spend your entire youth building a business, but you didn’t, and now you want to criticize him for not sharing his wealth with you.
4. You don’t assume you know everything: what do people do when they face financial problems. They complain about it. There is a bazillion number of things you can blame, starting from politicians that run the country and ending it with your boss. Or how about the billionaires who have taken all the wealth and left nothing for you. Their greed is keeping you poor. But if you tell him to pick up a book and learn even the basics of money management. He will tell you, this is my money, and I know how to take care of it, so don’t teach me how to handle my money! Well, if you have figured everything out, why on earth are you always broke? Maybe you shouldn’t be broke if you know everything. And it’s not only about money. But everything else. Haven’t you realized when people get into an argument, they try to prove that they are right, even if they are not, instead of trying to learn? And to be honest, I have had this mentality back when I was a teenager. I was quite stubborn. But then I realized that, If I keep going like this, I will never grow, So I stopped acting like I know everything and started paying attention to my flows and started fixing them. You cannot solve a problem if you don’t acknowledge it. That’s the first step to financial independence.
5. Focus on your net worth and not income: What is Jeff Bezos’s salary? What is the salary of the richest man in the world? How much do you think he earns when his net worth is around 200 billion dollars? Probably billions, right? No! His salary is a little over 81K dollars. Yes, you heard that right! Bezos doesn’t even make six figures. How is that possible? And that not unique to Jeff Bezos. Most of the richest men in the world have very modest salaries. Because there is a huge difference between net worth and income. Salary is what you earn when you trade your time for money, but wealth are assets that earn you money when you are not there. Since there is a limited amount of time you have on any given day, it doesn’t make sense to focus on your income.
That’s why rich people often focus on building wealth. Even the Forbes billionaires list is about wealth and not income. So if you are focused on building wealth, you are on the right track! Even when you look at it from a tax point of view, ordinary income is often taxed at the highest rate while there are a million tax breaks for wealth. The most famous one is the section 1031 exchange. You can sell your property and buy another property and don’t pay a dime in taxes. Some of these signs might apply to you others might not. But keep in mind that you can always make that change in your life. And it’s not going to happen overnight. In fact, it took me years to make that shift in my life. So there is no reason to think that you can’t do it. If 2.2 million people became millionaires in 2019, another 2 Million people become one as well this year, and as long as you put the effort and time, you definitely can be one of them.