Ten Golden Rules for Millionaires
Six years ago I had a net worth of $0. Now I'm a millionaire and I recently retired from my job.
If I can do it, you can do it. It’s all about habits.
Once I changed my habits, my life changed. It was then when I began to enter a world of opportunity.
I want to share with you the very best habits. These are my Golden Rules that will make you wealthy.
1. Create More than You Consume
Live a life dedicated to creating rather than consuming. This is the quickest way toward wealth and is my first rule for a reason.
Creators live their lives continually providing value to the world, therefore they are continually rewarded.
These rewards come not only monetarily but spiritually. Creators will always lead a more fulfilling life than consumers because the world they live in becomes a reflection of their work.
Wealthy people create more than consume. Poor people consume more than they create. Take a look at lottery winners. Notice that they always go broke quickly. Their money was handed to them so they have no idea how to be responsible. They never learned the right way.
Want to be wealthy? Look at consumer culture and do the opposite.
2. Invest in Yourself
“Self-improvement is not selfish. The world needs you at your best.”
Investing in yourself is the best investment you can make.
Think about it, the benefits of self-investment last a lifetime. You will continually reap the rewards. When you begin to go down the path of self-improvement it will impact your rate of return in every avenue of life. The knowledge you gain compounds and growth becomes exponential.
Putting yourself first is often viewed as a selfish act in today’s society. But, it is quite the opposite. You need to invest in yourself first before you can give to others. If you do not, you will have nothing to give. In a way, it can be a selfless act.
Listen to podcasts. Read. Learn. Create
Thanks to the Internet, you can learn almost anything for free.
If you dedicate yourself to this life a world of opportunities will open up for you AND for others.
3. Take Calculated Risks
Every wealthy person I know has taken on risk at some point. If you want to grow and get ahead of the pack you can't always play it safe. Taking on no risk in life is settling for a life of being mediocre. To get ahead you must stand out.
Some of you may be defensive in nature. My suggestion is to use the 80/20 rule.
80% in Safe Investments
20% in Aggressive Investments
NOTHING in Between
This will help you sleep at night while giving you the needed exposure to get ahead.
4. Track your net worth
Tracking your net worth is like getting on the scale. If you want to lose weight you should weigh yourself. If you want to get rich, you need to track your net worth. You need to know your financial health before you can make progress.
Your net worth is a reflection of your finances AND your habits that created your financial status.
Tracking your net worth helps you build momentum. Once you start it's hard to stop.
You will want the numbers to grow higher & higher.
Once you get into this routine your mindset will shift and you will look for opportunities to make the numbers rise.
5. Understand How Taxes Work
Understanding how taxes work in your country is the quickest and easiest way to generate wealth.
This is the harsh truth. Taxes are complicated intentionally to keep smart people at the top because smart people are capable of exploiting loopholes. YOU NEED TO LEARN THE LOOPHOLES.
Want to learn more? Read this ➜ Seven Steps to Pay $0 a Year in Taxes. Legally.
6. Understand Assets vs Liabilities
“Know the difference between an asset and a liability, and buy assets.
Rich people acquire assets. Poor people acquire liabilities." - Robert Kiyosaki
Poor people buy liabilities and then don’t understand why their stuff keeps them poor.
If you want to be rich? You need to spend more money on assets than liabilities.
Examples of Assets:
Stocks
Investments
Royalties
Rental-income
Assets produce income. Assets generate money. They put money in your pocket.
If you are going to make money (and want to make even more money) spend it on assets that pay you back.
7. Automate Your Investments
You want to spend LESS time worrying about your investments. Less mental real-estate is the goal. So, have the bulk of your investments taken out of your paycheck directly. So, when payday comes your money is automatically saved. Set it up properly and you will never think about it.
What is an example of a good safe investment? A low-cost index fund or ETF.
Want to learn more? Read this ➜ Automate Your Life to a Million: The Five-Step Process.
8. Only Invest in What You Understand
“Never invest in a business that you do not understand." - Warren Buffet
Not knowing you're “why” severely limits your ability to learn from past mistakes. Being able to reflect on past performance is the easiest way to get ahead. Only invest in what you understand.
Buying what you don't know leads to weak hands. Strong hands lead to conviction.
Exceptional returns need strong hands because they will allow you to hold through peaks and valleys.
9. Adopt the 1-Month Rule
Are you going to buy something brand new? Always delay the purchase for 30 days.
If you still want to buy the product next month then pull the trigger.
(This rule will stop you from buying irrationally)
Companies spend trillions of dollars on advertisers to try to get you to impulse buy for a reason. Fight back.
Understand that when you make a purchase you think it will bring you happiness forever. It will not.
Hedonistic adaptation is a real thing. The rush of happiness that occurs when you make a purchase lasts for 2 weeks. Tops.
Then you move onto something else. The problem is that you will be always chasing in life. One step behind the creators.
Learn to be in control of your emotions or they will rule you.
10. Learn to Create Leverage
You won’t get wealthy trading time for money. And you can’t do it all yourself.
You can leverage opportunities in many different ways. ALWAYS be on the lookout.
Ways You Can Leverage
Audience - Use someone else’s network like it is yours. Branch out.
Systems - You don’t need to reinvent the wheel. Look at what works (then do it better).
Knowledge - Ask questions / Listen. Other people’s experiences can become your direction.
Time - You don’t need to waste time doing mundane tasks. Other people can easily accomplish them.
Financial - This can often be high risk but if you are disciplined you can leverage other people’s money.
Leverage in a nutshell means work smarter, not harder.
Use it to your advantage.
