What does it mean to be a millionaire today? In each passing year, $ 1 million is worth less and less. For example, according to the Bank of Canada website , $ 1 million today was about $ 700,000 twenty years ago. However, despite the erosion of its value over time, this amount still symbolizes the wealth and the achievement of a certain financial autonomy. Steve Siebold, author of ” How Rich People Think, ” discusses the attitudes or behaviors that characterize people who will struggle to achieve this coveted status in this article .
We commented on these attitudes, without necessarily respecting the order used in the article:
1-You do not have financial goals.
Setting goals helps you keep the discipline you need. If your wish remains vague, it will seem more or less important in the long run, opening the door to procrastination. By setting concrete goals, it is easier to realize the importance of making efforts every day to materialize them.
That being said, having great ambitions is highly commendable. However, a great deal of patience is required. Plan to offer rewards along the way, as you reach different levels of your goal.
For example, you may decide to offer a trip as soon as you reach the threshold of $ 70,000 worth of net worth. The next reward could be the first $ 100,000. Note that the achievement of these steps can be achieved through the accumulation of savings, or by good returns in real estate or stock market. So, if you’re up to $ 95,000 and can not wait to reach the $ 100,000 mark, you’ll probably be motivated to save quickly to accumulate the $ 5,000 missing.
2-You use expressions such as “I want” or “I wish”.
Obviously, attitude is a big success factor. Saying “I want” will not hurt your chances of success if you express it with a positive intention, that is to say with the idea that it is possible and that you take the necessary actions for possibly the get.
3) You have not started investing.
Do not have to stress the importance of this point. Needless to say.
4-You have only one source of income.
It should be noted that the gains generated by the investment are a source of income in themselves. Therefore, if your savings are put to use, either through the stock market, real estate or any small business, you will benefit from more than one source of income.
5-You rarely get out of your comfort zone
This commentary means that one has to dare in life, and so, face the risk rather than avoid it. This does not mean engaging in risky projects.
But again, just investing exposes you to certain risks that workers are trying to avoid. We would add that living differently from the norm can have a significant influence on your long-term enrichment plan. It may be to go abroad to work temporarily to take advantage of a lucrative contract, or simply to live significantly below its means by adopting a way of life different from the people around you.
6-You think that wealth is reserved for some lucky.
As with number 2, believing in one’s abilities is essential.
7-You put too much emphasis on savings.
This is an interesting point. The article highlights the need to focus on income. We agree to a certain extent.
When you start with nothing, the least saving represents a significant improvement. For example, a person who did not own anything and who now owns $ 5,000 has been enriched considerably. Saving costs will produce interesting results at this stage.
Nevertheless, we personally know people who have paid for their entire home and who do not own any income generating assets. As long as they repaid their mortgage, they did not benefit from returns potentially higher than the interest rate of the loan.
When the net worth of a household reaches a significant value, saving on wages becomes less and less important. Efforts should instead focus on investments. For example, a 10% return on $ 500,000 equals $ 50,000. It’s hard to save that much if a worker only earns, say, $ 70,000 a year. So, in our opinion, the emphasis on savings must be weighed against the accumulated amount.