“You can’t tell a millionaire’s son from a billionaire’s.” – Vance Packard
Nowadays, millionaires come in all shapes, sizes, and now more than ever, AGES. Thanks to the internet and the plethora of resources available to us, a friend of yours might just be a millionaire. Unless you and that friend are very similar in habits and mindset, you may be out of the loop that he or she is a millionaire. Here are a few things you may not know about your friend that you should probably emulate – if you have any ambitions to being a millionaire too.
He always spends less than he earns
Your friend may not always want to go out every Friday night or blow money on expensive things. That may be because he ensures that he isn’t spending more than he is making. It is never a smart idea to spend money that you do not have. Your friend understands that. You should too.
He knows that patience is a virtue
Becoming a millionaire doesn’t happen over night. Depending on the investment type, it may take you a month, a year, or several years before you see a significant return. Our human nature pushes us to want gratification immediately. By not training yourself to be capable of holding back on immediate gratification, you will never be able to be a millionaire. Think about any of your favorite millionaires or billionaires – the businesses that they own or investments that they have made did not earn them millions or billions in an instant. Actually, some of them do, but that would have taken them months or years to organize. Your friend may understand the value of patience. Ask him to bet on the next president from now, see if he’s willing to wait years to win or lose.
He’s a believer in paying yourself first
If you work with this friend, you may share your paychecks or what you plan to do with your paychecks. If your plans involve buying new clothes or concert tickets and his are to put the paycheck into investments and savings, you may be friends with a millionaire. Paying yourself first allows you to put a focus on your investment goals rather than getting enticed to purchase things that won’t bring you any value to your life. Your friend is madly focused on his goals and he will ensure that nothing gets in the way. He would rather miss out on Friday nights and late night hangouts when he knows a few years down the line, he can spend every day and night like a holiday. Sounds good. Doesn’t it?
He pays off credit fully every month
Most young adults (and basically nearly everyone not wealthy) love to depend on credit cards. You probably pull out your credit card before your debit card. And that is regardless if you have a balance on your debit card or not. Using your credit card isn’t bad if you are working towards maintaining a good credit score as well as any perks that come with your specified credit card. The problems start only if you cannot pay off your credit balance fully every month. Your friend understands that interest isn’t on your side when you’re the one paying it. Learn from that friend. If you cannot pay off your credit cards monthly, pay with debit or cash, go home.
He isn’t impressed with flashy things
Social media and advertising promote directly to use young adults selling us the idea of buying things we do not need because those items speak for us, about our supposed “status”. Most of the time, the young adults buying expensive things cannot afford it. Surprisingly, some of the wealthy individuals that buy these overtly obnoxious items are also in debt. They believe that in order to really be wealthy, everyone you meet should know just from what you are wearing or driving. Billionaires and TRULY wealthy people know that their money growing is better for them than having their money in a depreciating car or clothing that you can never resell for the same price. Your friend may not always have the most expensive clothes but his bank account knows he can afford it if he really wanted to. But don’t be surprised if he secretly owns a couple Rolexes and a retirement fund the size of 50 trips around the world.
In closing: Don’t work towards looking wealthy rather than truly being wealthy. Words and things don’t prove that you are indeed affluent. Your bank account and your mentality does that for you. You can be a millionaire before that number touches your accounts. But you can also be poor while still working.
Until next time,
Live Long and Prosperous.
J.M.
Wealthy Fools 