11 Things Millionaires Do Differently – You Should Adopt Right Now

Millionaires do things differently from everyone else. Learning these things may help you to become a millionaire.

Here is what sets them apart from us:

1. They don’t spend too much money on housing.

Millionaires keep their housing costs low. Just consider billionaire Warren Buffett, who makes a ton of money, lives in a modest house worth 0.001% of his total wealth. Yes, you read that right. He is currently the 5th richest person in the world but he lives in the same house he bought in 1958.

According to studies, most millionaires don’t buy a house that costs more than triple the amount of their income.

So, what does it actually mean?

We’ll explain the 30/30/3 rule that most millionaires follow before buying a home. The rule means that:

• You should have at least 30% of the purchase price of the home saved in cash or low-risk assets.
• You should only spend a maximum of 30% of your gross income on a monthly mortgage payment.
• Your home value shouldn’t cost more than 3x your annual gross income.

If you want to build wealth, you need to keep your housing costs low and follow the 30/30/3 rule. Let’s make an example of how much home you can afford with this rule.

You make $60,000 annually, and your spouse also makes the same amount. This means your family makes $120,000 annually. This also means your family’s monthly income is $10,000 and your mortgage payment shouldn’t be more than $3,000. And you should buy a home with a value of no more than $360,000. Also you should have 30% of $360,000 – that is $108,000.

2. They are careful with money.

While many people who don’t learn how to be better with money live from paycheck to paycheck, millionaires are very careful when it comes to money. They are disciplined about saving and spending. They establish a very strict financial diet to follow what money is coming in and going out.

They follow the 50/30/20 rule that helps them to ensure their spending and savings are under control. This rule recommends that:

• You should spend 50% of your income on needs and obligations like rent or mortgage payments, utilities, and groceries .
• You should spend 30% of your money on wants, which are the things that are not essential, like vacations, eating out, entertainment, and electronics.
• You should save 20% of your money for investments, and retirement.

This budgeting method works very well. If you

You can start to follow this budgeting method. It really works well!

3. They save a lot of their money.

Living modestly enables millionaires to save more money. They save a large portion of their income. Because they know that saving more money helps them to invest more money and increase their wealth.

So they always put away what they’re making. If you want to become a millionaire, you need to start saving right now.

Even if it’s just a little!

The sooner you start, the more time your money has to multiply!

Let’s clarify how this happens. The rule of 72 is a simple way to estimate how long it will take any investment to double in value, based on the annual rate of return.

For example, an investment with a return of 10% will double your money in 7.2 years (72/10=7.2).

This rule can be used on any asset that grows at a compounded rate which is a powerful force to increase your wealth!

4. They have multiple income streams.

While most people have only one income source, which is their employment, millionaires have at least three streams of income.

According to a recent study;

• 65% of millionaires have three streams of income
• 45% of millionaires have four streams of income
• 30% of millionaires have five or more streams of income

This study shows that diversifying income sources is a key strategy to build wealth and reach millionaire status.

If you want to become a millionaire, take the first step towards building and expanding your income streams!

5. They invest in real estate.

“Ninety percent of all millionaires become so through owning real estate. More money has been made in real estate than in all industrial investments combined. The wise young man or wage earner of today invests his money in real estate.”

-Andrew Carnegie, billionaire industrialist.

Real estate investment is one of the greatest ways to increase streams of income and build wealth. This is why 90% of millionaires invest in real estate.

The reasons why most millionaires invest in real estate are the benefits include passive income, tax advantages, and leverage.

So if you want to build wealth, you certainly start investing in real estate today!

6. They invest in low-cost index funds.

According to a recent study, most millionaires follow the same and simple investing strategy recommended by Warren Buffett: Invest in low-cost index funds.

An index fund is a group of stocks that aims to track a market index, such as the Standard & Poor’s 500 index.

Index funds are a great way to get a diversified portfolio without as much risk as picking individual stocks.

Most millionaires invest in low-cost index funds for the advantages that we just mentioned above.

Well, if you want to build wealth over the long term, you can choose to invest in low-cost index funds.

7. They spend more time planning for investments.

They are obsessed about investing and build their life around it. We know that this is not correct, but they spend a lot of time planning for investments.

They devote their time to think about their investment plan. They always read about personal finance to get familiar with financial terminology. Because they know that understanding finance terms is the first step to becoming a successful investor.

Related: 12 Financial Terms Everyone Should Know

If you’re serious about becoming a millionaire, take some time to think about making an investment. In doing so, you can easily control your investment portfolio, and increase your wealth.

8. They spend more time on personal-growth activities.

Millionaires never stop learning and improving no matter how successful they are. They spend a lot of time reading, exercising, and other personal-growth activities.

They know that personal growth activities help them to achieve their goals.

In the same way, you should always continue to learn and develop yourself throughout your life.

Learning doesn’t stop!

9. They sleep less and work more.

Studies show that millionaires sleep nearly eight hours less a week than the average individual. And the same research shows that they work six hours more a week than the average person.

It’s an undeniable fact that sleeping is essential to repairing our bodies and refreshing our minds. However, in our modern world, sleeping seems like such a waste of time. That’s partly because people think that six or seven hours sleeping is well enough for an adult.

What about millionaires?

How many hours do they sleep?

Most millionaires sleep around five to six hours a day and work around 60 hours a week.

So if you want to be rich, you should make some sacrifices!

10. They are dedicated, determined, and resilient.

Millionaires don’t just sit around waiting for good things to come to them. They are dedicated, determined, and resilient. These traits differentiate them from average people.

And you know what?

You could have these traits too – if you want it!

You should just think and act like a millionaire. By taking time to work on these traits right now, you can build wealth and become a millionaire.

11. They ask for feedback.

Feedback, good or bad, is valuable for learning and growth. But you should try to understand the intentions of the person giving you feedback. What kind of feedback do you get? Appreciation, coaching or evaluation?

Appreciation motivates, coaching helps you improve, and evaluation helps you learn where you stand.

So just try to understand what feedback you need and ask for it to learn and grow. Because millionaires do the same. They ask for feedback to improve themselves and to see whether they are on the right path or not.

Final Thoughts

So you learned the most important things millionaires do differently from everyone else. These things will help you take important steps toward getting your finances in order, and will help you grow your income.

We know that making your first million will not be easy but these things may help you reach your million dollar goal!

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