Looks Are Not Always What They Seem
According to Warren Buffet and his business partner Charlie Munger, the way to get rich is not to look for ways to make a lot of money. Instead, they say, if you think deeply and are patient, you may be able to find something that’s undervalued and then hold on to it as its value increases. That’s because things that are cheap now may turn out to be a lot more expensive later.
This is a very practical way to think because it puts you on the front line, looking for opportunities. That way, you have more control of your destiny, and you can decide if an opportunity is good enough for you or if you should pass it up.
How can you think like a millionaire? Here are four practical guides that can help you learn the specific tools.
Believe in Yourself.
This is one of the most important things you can do when you want to raise your level of income. By itself, increasing your self-confidence will not cause you to become a millionaire. However, it will help you realize that your thoughts and actions are the ones that build who you are.
Treat yourself like you’ve already attained your financial goal. I know it’s easier said than done. This is why you have to train yourself to start thinking and believing like a millionaire.
Let’s take this even further. Just how do you think like a millionaire?
You want to focus on what making a lot of money entails in your life. It implies the freedom to do what you want when you want it, right? And it also suggests that you have more flexibility when it comes to making decisions about your finances.
When was the last time you considered what you will do once you finally do reach your financial goal?
You need to realize that being a millionaire is a life-changing event. You have to start expressing the personality traits of a millionaire. Here’s how:
- Be Patient. Master the art of delayed gratification, which can be quite difficult when you have a strong desire for instant gratification.
- Be Generous. Find ways to help others and contribute to causes that you believe in.
Learn to Embrace Risk.
Millionaires tend to have a very different mindset.
They know that a bad decision is seldom costly or irreversible. Instead, they understand that risk is a natural part of life. For them, risk taking is a matter of minimizing and factoring in benefits and costs, like everything else. They know that failing means having a completely different chance to succeed next time.
Risk taking is easier said than done. If you’re a person who shies away from risks in fear of failure, you probably haven’t achieved your ultimate earning potential.
Find ways to psychologically adjust yourself to take risks. This may take some time and effort, but it is all part of the investment you are making. The sooner you get comfortable with risk, the sooner you will start to see the benefits of your investment pay off.
Commit Yourself to Wealth.
Millionaires are known to be goal oriented. They know exactly where they are going and answer the “How” question very quickly. According to a study by Thomas Stanley in his book “The Millionaire Next Door,” the vast majority of millionaires in America are first generation millionaires. They made their wealth through commitment, hard work, and thinking like a millionaire.
To really think like a millionaire, you must commit most of your income to wealth-creating assets, such as stocks, mutual funds, and real estate. The rest should be kept in cash for emergencies like a car breakdown or unexpected expenses.
Instead of living in a rented house, think like a millionaire and rent out the house. Instead of saving for a vacation, invest the money instead. With the right mindset, you will eventually be able to move up from being a second or third generation millionaire to a first generation millionaire.
Do You Have a Millionaire Mindset?
The following millionaires are known for their multi-million dollar business ventures as opposed to their bank accounts. They typically thought little about their personal gain, but instead, their main focus was in fulfilling others needs.
It is said that the main difference between a millionaire and an average person is not their bank accounts, but their attitude and their mindset.
Although some of the following millionaires are considered legendary, it is not a requirement to be rich to develop a millionaire mindset. Just focus on future possibilities and think big, and you too can have a millionaire mind.
Opportunity
You may have heard the saying, “Where there’s a will, there’s a way.” Opportunity is at hand in those situations, but only if you are willing to take action and make an opportunity for yourself.
Take Action
Whether you are at work or at home, you should be a person of action because time is money.
Save
There is only one reason for saving money. To be able to make more money.
Be Humble
Do not be arrogant. Do not let your ego stand in the way of personal growth.