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Getting rich and Millionaire Mindset

By Edited Nov 14, 2015 1 2

It is hard for a poor person to get rich. It is nearly impossible for a poor person to get rich without the millionaire mindset.

Even if he wins the lottery and becomes a millionaire overnight, he cannot keep the money without a millionaire mindset.

What is the millionaire mindset? Can you develop the millionaire mindset?

The millionaire mindset refers to the way of thinking. Many truly rich people think differently from the rest of us.

Their thinking determines their action. They think everything in term of money, yet they do not love money as desperately as poor people do.

It is possible for anyone to change his thinking to develop the millionaire mindset.

Most working class parents teach the wrong financial values to their children. The children have to get rid of the old methods of thinking in order to develop the millionaire mindset.

What are some of the wrong thinking?

1. Credit cards

Many people consciously or unconsciously think of credit card as money. Credit card is not money.

Credit card is an agreement between you and the company. The company agrees to lend you money at a certain lending rate.

When you use the credit card to pay for goods, your action shows that you have agreed to the terms, and you are willing to pay the interest.

Rich people fear and hate credit card debt. Many poor people get rich by frugality, and limited use of credit cards.

2. Debt

Rich people do not fear debt. They are willing to spend hours bargaining for the lowest possible rate, but they are not fearful of getting into debt.

The poor people fear debt. They want to pay off mortgage as fast as possible, yet they allow credit card debt to accumulate.

If you want to develop a millionaire mindset, you need to differentiate between good debt and bad debt. Good debt has lower interest rate, and you use it to generate more profits. For example, getting a mortgage at very low rate to buy an apartment for renting out is a good debt.

Credit card debt is never considered a good debt. The high interest rate makes it the worst form of debt.

3. Contentment and ambition

Many parents teach their children to be contented with what they have.

That is good advice. However, they fail to teach their children the difference between contentment and ambition.

When a child gets 88 marks out of 100, and is the top in class for that subject. He can be contented with his achievement. That does not mean he should not aim for higher marks.

Contentment with the current situation does not mean you should not aim for a better future.

If you are earning $1,000 a month, and you spend only $800 a month, you should be thankful for the income. It does not mean you cannot accept the promotion and earn $1,500 per month.

It is a delicate balance to be contented and yet ambitious at the same time.

Once you know the difference, you can develop the millionaire mindset and work towards the goal of being a millionaire.

A millionaire mindset is invisible. You cannot look at a person for sign of a millionaire mindset.

However, a millionaire mindset will change the habits of a person. You can observe the habits of a person and determine whether he has the millionaire mindset.

What are the habits of a person with the millionaire mindset?

1. Frugality

A person with the millionaire mindset does not waste resources.

You will notice that he squeezes dry the toothpaste before throwing it away. You will notice that he wears out his leather shoes before getting another.

You will notice that he finishes all his food. You will notice that he saves every penny. He does not compete for a bigger house or a bigger car.

Frugality is often a trait of person with the millionaire mindset. Many rich people do not lose the frugality since it is part of their personality.

2. Energy

A person with a millionaire mindset has energy for upgrading himself.

He does more than required. He learns more than he needs to know. He has the energy to work long hours.

Many poor people display the same energy at work, and at home.

They work harder than others in the workplace. They reach home, and do not stop working. You can see them starting a home based business or engage in repair works at home.

3. Discipline

A person with a millionaire mindset exercises discipline.

If he wants to lose weight, you will see him exercise great discipline in sticking to a diet or exercise program. Nothing can stop him.

If he wants to get rich, you will see him saving money conscientiously. He will not spend a single cent on himself.

A person with a millionaire mindset does not give up easily. He will try and fail, try and fail until he succeed.

4. Delayed gratification

Delayed gratification means to wait until you have enough money to spend before you buy anything.

All those with the millionaire mindset do not spend future money.

They will save money for investment purpose. They spend only the dividend, and not the capital.

5. Objective

They do not make personal attacks when things go wrong.

They seek the cause, and they learn to rectify problems. They do not waste time playing the Blame game. They look at matter objectively, and seek improvement continuously.

6. Health

Poor people eat junk food, and rich people eat healthy food. This is the result of some surveys in a few countries.

While we expect the opposite to be true, the fact is that those with the millionaire mindsets know the importance of healthy eating.

You cannot place a monetary value on health. However, you can place a monetary value on the loss of good health.

How much money do you lose when you miss work for two days? Imagine you are an hourly rate worker, and you can get the monetary value.

How much money will you lose when you need to hospitalize for an open heart surgery? Think in term of loss in income, plus the actual hospitalization bill.

That is why rich people cannot afford to eat junk food. The cost of eating junk food is too high.

7. Money

A person with a millionaire mindset will think of everything in term of money.

That does not mean he is greedy. He is just being practical. He will not use unethical means to get rich.

If you take a look around you, you can reevaluate the value of your neighborhood in monetary term.

You can look at your house, think of the selling price, and the long term passive income from rental. You can think of the different factors that enhance the property value of the houses in the neighborhood.

When you buy a car, you can think of the value of the car in monetary term. If you use your car to generate sales, your car is a profit-making machine.

When you choose a pet, you can think in monetary term as well. Buying the first pet that appeals to you is not a good choice. The medical cost is high if you choose a sickly pet instead of a healthy one.

If you want to get rich, you must think like the rich. You must have the millionaire mindset.



Sep 20, 2010 12:20am
Very true, it all starts in the mind.
Jul 21, 2011 5:29pm
So true. Wealth or Poverty it's all in the mind.
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