How to Think Like a Millionaire (5 Smart Things that Rich People Do That You Should Too!)

Changing the way you think is the first place to start. Here are five ways to start thinking like a millionaire:

Have a Goal in Mind

Having a goal means you have motivation and meaning for your money. You’re not just saving because it’s the right thing to do — you’re saving for retirement, a newer car, a down payment on a house, or that trip you’ve always want to take. Millionaires have goals too, and this is what keeps them from spending frivolously on things that won’t help them get there.

I’m sure you’ve heard those horror stories of professional athletes who sign million-dollar contracts, then are somehow broke after they retire. It’s because they didn’t learn to manage their money well during their peak playing years, nor did they have a specific goal in mind for when they finished.

Think about where you want to be in 20-30 years. Do you want to be out of debt? Fund a retirement account? Pay for your children’s college education? You need to have goals so every action that you take today, is one that brings you closer to them. 

Think Before You Spend

Thinking before you spend is critical to a millionaire mindset. Of course, there are plenty of celebrity millionaires who blow their fortunes on private jets, island mansions, and excessive weddings, but the true millionaires, the ones that manage their money well, are always thinking about the implication each purchase has on their overall finances.

When considering any purchase {big or small!}, ask yourself these 3 questions:

  • Do I really need this?
  • Can I borrow this item from someone else?
  • Can I find it for less elsewhere?

I have gotten myself into more trouble because I swiped a credit card without thinking, when I really should have done my homework and scouted out other alternatives first. Patience is key!

Don’t Be Wasteful

Always, always, always be thinking about how you can use old items in new ways. We throw away more food, more paper, and more perfectly usable items than necessary, and while I’m not advocating at all for clutter, you should consider if the item has any re-purposing value at all before you toss it.

Here are some ideas:

  • Pair different pieces of clothing together to make new outfits
  • Shop from your pantry and bring new life to leftovers
  • Pass along older magazines to friends who might enjoy them
  • Turn shipping or shoe boxes into organizing containers for storage
  • Recycle junk envelopes and notecards into scrap paper
  • Give away items you don’t use anymore to a local thrift store {just make sure everything is in good condition!}

Smart millionaires are resourceful and “make do” with what they have, because they know that saving money on these seemingly smaller items, will allow them to spend their hard-earned dollars on more important things.

Believe in Your Success

Lastly, and probably the most important point to remember, is that millionaires believe they will be successful. It can take a long time to make {and save!} the money needed to establish an emergency fund, pay off all debt, fully fund a retirement account, and invest in other valuable assets, but it’s possible — for all of us.

Be confident in your financial situation, no matter how big or small. Find those opportunities to save, and focus on spending smart. Believe you will make it, then work hard on getting there!

These 5 steps might not launch you or I into a million bucks right away, but they will help us start acting like one. Because half the battle of being frugal is thinking like you are frugal. And frugal living is a lifestyle and a mindset more than anything else.

To recap, here are 5 Smart Things that Rich People Do That You Should Too!

  1. Have a Goal in Mind
  2. Think Before You Spend
  3. Don’t Be Wasteful
  4. Never Stop Learning
  5. Believe in Your Success

Other helpful resources:

Avoid Fees at All Costs

Fees can easily eat away at your wealth. Whether it’s a late fee on a credit payment, a foreign transaction fee from using a debit card abroad or an overdraft fee on your checking account, it’s important to avoid incurring unnecessary fees. “Wealthy people understand every fee they pay means less money in their pockets,” said Taylor Schulte, CEO of Define Financial in San Diego.

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Invest In Yourself

Successful people know that it’s worth investing time, money and energy to improve yourself. This can entail reading a self-improvement book, taking a class or  learning new skills. “I invested in sales training when I was 25,” Cardone wrote in a column for CNBC. “That made my income-producing ability skyrocket. Investing in yourself is the best investment you can make.”

They surround themselves with like-minded people

Having the lifestyle of rich people is very peculiar… they don’t share the same interests as other people, and there are not many people with whom you can share your concerns about having to pay millions in income taxes. They will flock together in similar gatherings and enjoy being together anywhere in the world.

6. Apply the right balance of logic and emotion

People who fear losing money allow negative emotions to cloud their judgment, making financial decisions based on a deficit mentality instead of abundance.

Whereas the rich use emotions as the foundation for their actions, then apply logic and reasoning to the decisions they make in order to build a substantial asset base.

They are constantly thinking about the future

The future is only the present waiting to happen. Wealthy people know that if they want to keep their lifestyle, they have to think about the long-term. Globalization, financial crisis, and world conflicts are opportunities or threats for the rich individual. Not seizing long-term opportunities and ignoring potential threats is a recipe for becoming average.

1) How to Make More Money: Start By Writing Down Your Ideas

Buy a spiral notebook. Carry it with you if you possibly can, and write down every idea that comes to you throughout the day. Review this idea log on a regular basis.

Sometimes, one idea that you have while you are driving along, sitting, reading, watching television, or in a conversation may be the insight that will lead to the start of your fortune. If your goal is to make more money, write down all of your ideas as to how you will achieve this goal.

The rule is, “Catch the idea and write it down.” If you don’t write it down fast, you will very often lose it.

What is a wealth mindset?

If you dig deeper into the stories of wealthy people, you’ll notice a pattern:

Rarely will a wealthy person be able to boil down their success to a single miraculous moment. Instead, they’ll cite their mindset as the biggest reason for their prosperity.

A wealth mindset is a set of beliefs, habits, and behaviors that separates the wealthy from the rest. A wealth mindset will guide you to make the most of the money you have.

But it doesn’t come easy. A wealth mindset means spending less, making wise investments, and looking for ways to improve financial standing with minimal risk.

The good news is that with a little dedication, anyone can develop this mindset.

3) Gaining Financial Independence Using The Magic Wand Technique

Practice the exercise of fantasizing on a regular basis. Sometimes this is called the “magic wand technique.”

Imagine that you have a magic wand and you can wave it over your current situation or problem. Imagine that as a result of waving this magic wand, all the obstacles are removed from between you and your financial goals.

3. Never stop hustling

Now that you have a foundation for growing your mo

Now that you have a foundation for growing your money, it’s time to invest in the most important thing:

Yourself.

If you want to foster a wealth mindset, you’ll need to minimize time-wasting activities like watching television or scrolling through social media. Globally, we spend over two hours on social media sites every day.

Instead of wasting that time scrolling, take care of your body. If you aren't already focusing on your mental and physical health, learn and practice "better health habits", such as eating healthy, sleeping right, and exercising the right way.

Here's another idea: practice your negotiation skills. Whether it’s negotiating your bills, your salary or a client contract, wealthy people always come out on top and are able to squeeze more dollars for themselves.

Earn cash on the side by creating a side hustle. By driving for a ride-sharing service, teaching courses online, or even officiating weddings, 44 million Americans earn an average of $25 per hour with a side hustle.

Find a niche you’re passionate about and it won’t even feel like work.

Learn new skills in areas you’re interested in too. You never know when a skill you learned today will become an opportunity later down the line.

10. Understand human nature

Wealthy people know the markets are driven by fear and greed and play them accordingly.

They recognise that behavioural bias and human nature influence cyclical movements, while others are too busy looking for logic where there is none.

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