Every year, thousands of people become millionaires, while hundreds of thousands struggle to make ends meet. What is the difference between the two groups? In many cases, it comes down to whether or not you have what it takes to be a millionaire. While this may seem like oversimplification, there is a lot to be said about the mindset that future millionaires have, versus the mindset of the average consumer. Let’s see if you have what it takes to be a millionaire.
1. Do you have a clear financial plan for now, five years from now and in the future?
Many times, people become millionaires because they set specific goals for themselves, and then work hard to achieve those goals. Even if you don’t quite make it to your goals, chances are if you are aware of your financial condition, want to make it better and work at ways to accomplish it, you will be better off money wise.
2. Do you understand the difference between good debt and bad debt?
While some consumers are putting down $5000 on a plasma tv, others are using that same amount of money to put down on a foreclosed property. The first group will end up paying interest on a television that will only depreciate, while the second group has the potential of making hundreds of thousands of dollars with a future sale, or a steady stream of rental income in the mean time.
3. Do you understand the importance of budgeting?
Overspending is an enormous problem and the bottom line is – if you spend more than you make, your chances of becoming a millionaire outside of winning the lottery are slim to none. There is no point in making money if you are spending faster then it comes in. Millionaires learn the importance of saving that money and controlling their expenses, otherwise, they wouldn’t have that million dollars.
You can look at this way. Let’s say that you spend $10k every year on non-essential items. In ten years, you would have spent $100k. Now, take that same $10k, but invest it in property or stocks – in ten years you would likely have much more than $100k at your disposal.
4. Do you understand that “overnight success” takes time?
While there are a few exceptions to the rule, most millionaires spent time getting to that point. Whether it is five years or fifty, becoming a millionaire requires effort, it requires focus and it requires dedication. If you are not willing to put in that kind of work, your chances of achieving that goal are very small.
Start developing the “millionaire mindset” and make those small steps towards achieving your goals. Whether or not you actually do end up making a million dollars, you’ll be working towards developing not only sound financial principles, but chances are you will have more than enough money to remain financially comfortable for the duration of your life.
Photo Credits: 1
Originally posted 2008-10-02 05:21:27. Republished by Old Post Promoter
Related Posts -
8 Tips on Saving Money Without Scrimping Retrain your Brain - If you deprive yourself of the things that bring you pleasure, you are going to have trouble saving money. Retrain your brain by visualizing a future that is more fulfilling, like credit card bills that are smaller, and higher savings account balances to give yourself a...... - Sunday Money Madness - Happy New Year! Happy New Year Everybody! Let's kick off the first of this year's roundup with a bang! Credit and Debt No Debt Does Not Mean Good Credit says Credit Karma. All Financial Matters posts Bureaus Roll Out New Credit Score Formula for 2009. Finance for a Freelance Life asks Got Gift......
-
Protecting Your Investments In Times of Economic Crisis The United States economy is currently experiencing a serious financial shake up. No one really understands just how deep or how far reaching the damage is going to be, but what we do know is that there is going to be damage, and that we are going to be at...... -
How Much Does Your Money Matter to You? If you were to ask anyone on the street that question, odds are the majority would answer, “very much.” However, these same people will easily turn around and drop a small fortune on something without a second thought as to how it would return to them. Before you get started...... -
Does Your Education Really Make a Difference For Your Financial Future? One of the age old questions that many people have is whether having a good education will predispose you towards being wealthy. While there are many schools of thought on this, the general consensus is that it is easier to make more money when you have a special degree, but......
Related Websites - Be the Author of Your Own Financial Plan Planning for your financial future is important no matter what stage of life you are in. A plan acts as a guideline as you make decisions, helps you stay motivated as you make sacrifices to meet your goals, and makes it easy to track your financial progress. A financial plan......
- Taking Chance - A New Film on HBO I was recently sent a link to Taking Chance, a new film by HBO that premieres Saturday February 21, 8PM. The film is based on a true story about Lieutenant Colonel Michael Strobl, a 17 year veteran of the USMC who volunteers to escort the remains of a 19 year......
- 2007 Propser.com Financial Expectations and Goals Happy New Year. I hope your 2007 is prosperous and that all of your stretch goals come true. Expectation Goal Stretch Goal 2007 Year Ending Account Value $4,386.37 $5,062.84 $5,740.86 Return on Investment (ROI) 10% 12% 14% New Reinvestment Loans 24 27 30 Number of Defaults 2 0 Per Month......
- linklings, Rorschach edition I neglected my blog reading this week, so it's a more-sparse-than-usual roundup. I was busy at work, hurriedly assembling memos and spreadsheets for urgent meetings which resulted in the formation of committees to consider creating memos about spreadsheets tracking meetings... you get the picture. Combine that with a big political......
-
The New Hourly Rate Definition This is a guest article by The Financial Blogger. People are often comparing their salary to friends, family or colleagues. We always have this temptation to know how much others make and how they can afford everything they have. For some, this is called envy -- if you don't do......
- Mixed Lots Morgan 1878-1921 Dollars Coins US Coins Paper Money
- Presidential 2007-Now Dollars Coins US Coins Paper Money
- 1885-93 Morgan 1878-1921 Dollars Coins US Coins Paper Money
- Silver Eagle Proof 1986-Now Dollars Coins US Coins Paper Money
- Mixed Lots Presidential 2007-Now Dollars Coins US Coins Paper Money
Categories:
Budget, Debt, Goal, Personal Finance, Wealth, bad debt, good debt
Tags:
0 comments ↓
There are no comments yet...Kick things off by filling out the form below.
Leave a Comment