No. 8: You don’t live like one.
No one is born a millionaire. Even if your parents are rich, without the right attitude toward money, you can turn from a prince to a pauper overnight.
However, some people carry certain traits that easily make them candidates for great success and wealth.
If you have at least one of these, you could be on the right path.
1. You gun for lucrative fields.
Some professions pay more than others—and pursuing these fields can give you a head start in getting your first million. According to JobStreet.com Philippines, people who gun for industries like IT, corporate strategy, actuarial sciences, human resources, and others can earn as much as P86,000 when they stay long enough to reach managerial positions.
2. You make savings a habit early on.
If you start saving early, your dream of having a million-dollar account is not an impossible feat. Financial blog Market Manila says if you are 23 years old, and set aside just P100 every month for 42 years, you’ll have saved up P1 million by the time you retire at 65. That’s assuming average compound interest rates of 11% per annum, or roughly 0.9% per month. “Not bad for P100 a month—less than the cost of snazzy Starbucks latte,” the blog says.
3. You don’t stop at failure.
Four of the five Forbes’ richest Filipino billionaires went from rags to riches. Henry Sy Sr., John Gokongwei Jr., Andrew Tan, and Lucio Tan all have one thing in common, besides their lineage: They failed at one point in their lives and didn’t stop there.
4. You have a solid network of people.
To become a millionaire, Stacia Loo of The Millionaires in Training suggests that you “spend more time with others who uplift you, motivate you and have what you would like to achieve. If you want to meet a millionaire and get mentored by one, it is more like you will meet one if you change your environment of people you hang out with the most.”
5. You know good debt exists.
It’s what you do with debt that makes it either good or bad. Knowing when to borrow money for a good cause is a mindset of a millionaire in the making. By borrowing money to earn money—i.e., buying an asset—you are putting your debt to good use.
6. You know who to look up to.
There is no secret formula to success. We all live in different circumstances, and therefore need to concoct different ways to maximize our skills and get past obstacles. But we can learn from people who have already been there.
7. You invest in yourself.
Millionaires in the making stay tuned to current events and self-help materials to improve themselves and earn the proper mindset. “Eighty-eight percent of the rich devote 30 minutes or more each day to self-education or self-improvement reading…most did not read for entertainment,” writes Tom Corley in his book Change Your Habits, Change Your Life. “The rich read to acquire or maintain knowledge.”
8. You don’t live like a millionaire.
Saving your first million isn’t just about putting money in the bank; it’s also about knowing how to spend your money wisely. Since most of your income goes to your expenses, it plays a crucial role in making sure you have enough to save for your million. “Make budgeting a game by giving yourself an interesting new challenge every week,” business coach Jaime Tardy tells LearnVest. “See how little you can spend on groceries, or even skip food shopping one week and invent meals using what you already have in the cupboards.”
9. You go out of your comfort zone.
Complacence is the greatest enemy of people who aspire to be millionaires. When people start to become comfortable, they tend to stop exerting effort and become content with what they have. Two words: Stay hungry. “You now know that your mind likes to keep things the way they are,” says Magda Kay of Psychology for Marketers. “But, if you keep doing the same things, you’re going to have the same things. If you want to change what you have, then you’ve got to try something else.”
10. You have a mentor.
Having an inspiration is one thing; having a personal mentor is another. Grant Cardon writes on Entrepreneur: “Get your own personal millionaire mentor and study them. Most rich people are extremely generous with their knowledge and their resources.” —Dino Mari Testa