7 Wealth-Building Strategies of Millionaires

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Forty-one percent of the 177 self-made millionaires in my Rich Habits research study were raised in poor households. Yet, somehow they managed to break out of their poverty as adults.

How?

In my book, Change Your Habits Change Your Life, I shared the many wealth-building strategies/habits these future millionaires adopted, which was critical to their success and building their wealth.

What follows are the top strategies/habits that had the greatest impact on transforming their lives from poor to rich.

#1 They Reduce Their Risk of Failure

One of the downsides of failure, is that it can put you in the poor house. When you grow up poor, you don’t fear poverty as much, because it is something you are familiar with and something you survived. Therefore, failure does not frighten you as much and, in fact, emboldens you to take risks.

But not just any risk. According to my study, the self-made millionaires took something called Calculated Risk.

Calculated Risk requires doing your homework and planning for every potential outcome, good or bad. When it came to taking risks, my self-made millionaires always had an escape hatch, or Plan B. Knowing all of the potential outcomes and having a Plan B, gives you incredible clarity moving forward and helps eliminate the fear of failure.

#2 Desire to Change is Great

Poverty can either beat you down or make you stronger. For the self-made millionaires in my study, it made them stronger. That’s why they were in my study – poverty motivated them to achieve.

Their desire to become successful and rich drove them to transform themselves. This desire to change motivated them to learn what they needed to know in order to succeed. It also forced them to develop and perfect superior skills in order to earn more than their competition.

#3 Superior Work Ethic

A hard work ethic is a prerequisite to success. Those who are raised in poverty, have no choice but to work hard. When you are able to combine a hard work ethic with your dreams and goals, success is inevitable.

#4 They Remove Rose-Colored Lenses

When you grow up poor you see things through a much different lens. You know life can be very hard when you are poor. Things can and do go wrong. You know that because you experienced that growing up in poverty. The experience of poverty allows you to see things as they really are and not allow yourself to be blinded by unrealistic optimism.

Being anchored in reality, allows you to see potential pitfalls ahead of time, which enables you to navigate and pivot around those pitfalls.

#5 Comfortable With Failure and Setbacks

Those who struggle with poverty become familiar with failure and setbacks. Consequently, when things go wrong, as they often do in the pursuit of wealth, those raised in poverty don’t raise the white flag and surrender. Rather, they see failure and setbacks as normal, which allows them to keep moving forward in the pursuit of their dreams and goals.

#6 Accustomed to Sacrifice

Growing up poor means you are unable to possess the things non-poor people take for granted. Poverty forces you to become accustomed to doing without. This actually is a great advantage. The pursuit of wealth always requires sacrifice. Sometimes for many years. If you’re accustomed to sacrifice, it’s less painful and more tolerable.

#7 Frugality is a Habit

The poor have no choice but to be frugal with their spending. They forge the frugality habit at a very young age. And, as you know, habits are hard to break. This frugality habit, therefore, follows the poor into their wealthy adult lives.

#7 They Know How to Wow Those They Do Business With

Unsuccessful people have a tendency to want to “wow” others, so they make promises that often exceed another person’s expectations. They “wow” them at the beginning. That’s backwards. It sets you up to fail when you do not meet expectations.

Successful people make it a habit of changing the other person’s perception of reality. They reduce expectations at the beginning of the promise stage. By reducing expectations this way, they set themselves up for success, making it easier to exceed expectations by over delivering. This allows them to “wow” them at the end.

My mission is to share my unique research in order to help others realize their dreams and achieve their goals. If you find value in these articles, please share them with your inner circle and encourage them to Subscribe. Thank You!

Success is a Team Effort

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Sixteenth century astronomer Galileo Galilei stood on the shoulders of 15th century astronomer Nicolaus Copernicus when he proved through various experiments that Copernicus’ sun centered theory was correct.

Sir Isaac Newton, considered the father of physics and calculus, stood on the shoulders of Copernicus, Galileo and Rene Descartes.

Albert Einstein stood on the shoulders of Galileo, Copernicus, Newton, Descartes and many others when he came up with his famous General and Special Theories of Relativity.

All successful individuals stand on the shoulders of others, who helped motivate and guide them in their journey.

Some of the shoulders we climb up on are found at home – mentoring, supportive parents.

Others are found in school – devoted teachers.

Oftentimes a boss or supervisor can be a mentor, showing us what to do and what not to do.

Books can become our mentors.

Or, you can spend five years interviewing 361 rich and poor people.

If you want to be successful, you have to continuously learn from others, what to do and what not to do.

Success is a team effort. No one succeeds on their own.

My mission is to share my unique research in order to help others realize their dreams and achieve their goals. If you find value in these articles, please share them with your inner circle and encourage them to Subscribe. Thank You!

The Starting Point For Success Is Always The Same

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According to a 2013 Associated Press survey, 80% of America’s adults were struggling with unemployment, poverty or near poverty. That’s a lot of unhappy people. Unhappy people tend to have unhappy thoughts.

Conversely, happy people tend to have happy thoughts. Cognitive psychologists call this tendency to see the world through either a negative or positive lens, mood congruency.

According to the latest science, negativity inhibits your ability to think clearly. When the lens through which you view the world is negative, you see nothing but problems. You become blind to opportunities. A negative mental outlook causes tunnel vision, limiting creativity.

If you’re one of those 80% struggling in life, a negative mental outlook acts like gasoline, fueling the flames of negativity and perpetuating a life of unemployment, poverty or near poverty.

A positive mental outlook, according to that same science, enhances creativity, problem solving and allows you to see opportunities.

So, if you want to increase your odds for success, you need to flip the switch.

But how do you flip the switch from a negative outlook to a positive outlook?

Gratitude!

Gratitude is the gateway to optimism and a positive mental outlook.

Gratitude forces you to shift your focus from what you lack, scarcity, to what you have, abundance.

The other day, for some reason, my car stalled at a traffic light on my way to work. Ten cars were lined up behind me. In a panic, I immediately re-started my car and everything was fine. The first thought I had was, thank God my car started right up.

How many times do we turn the key every morning to start our car and think nothing of it?

We need to make a daily habit of being grateful for the simple things in life.

My car started today, I was able to feed my family, I have a roof over my head, I’m healthy, I’m alive, I have a loving family, etc.

When you shift your thinking to the good things about your life, you force your brain to shift from negative to positive.

If you practice gratitude every day, eventually a positive, abundance mindset will replace your negative, scarcity mindset.

Gratitude changes the lens through which you view your world, from negative to positive. And when that happens, you’ll begin to see solutions to your problems. Ideas will pop into your head that will help you climb your way out of your unemployment, poverty or near poverty.

Expressing gratitude every day is not some pseudo, new age bunk. Gratitude is the gateway to optimism and a positive mental outlook. It’s the means to transforming your life from one filled with scarcity, problems and limitations to one filled with abundance, solutions and limitless opportunities.

There are numerous ways to achieve financial independence (4 Paths to Becoming a Self-Made Millionaire – http://richhabits.net/4-paths-becoming-self-made-millionaire/).

But no matter which path you take, the starting point is always the same – an optimistic, positive outlook.

If you want to be rich, you must get your head straight. The starting point for success is always the same – Positive Thinking!

My mission is to share my unique research in order to help others realize their dreams and achieve their goals. If you find value in these articles, please share them with your inner circle and encourage them to Subscribe. Thank You!

Thank You – Endorsements

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I received an overwhelming response to my request for 10 endorsements. Due to space limitations, I had to limit it to 10. I am very grateful and honored at the incredible response I received.

Tom

My mission is to share my unique research in order to help others realize their dreams and achieve their goals. If you find value in these articles, please share them with your inner circle and encourage them to Subscribe. Thank You!

Know Thyself

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I’ve written often about the 4 Paths to Wealth, which I discovered in my Rich Habits research (4 Paths to Becoming a Self-Made Millionaire – http://richhabits.net/4-paths-becoming-self-made-millionaire/)

I’ve never been the type of person who pinches pennies (Saver-Investor Path). Being excessively frugal is just not in my DNA.

After working many years in the corporate headquarters of a large company, I realized that I’m also not the type of person who can tolerate the politics of a corporate career (Big Company Path).

I am the type of person, however, who has the discipline to devote years in developing an expertise (Virtuoso Path).

  • Getting my Masters degree in Taxation took three years of night school.
  • I became one of the top junior tennis players in the U.S., largely because I had the discipline to practice for many hours every day, during my childhood.

I also learned, thanks to my Rich Habits work, that I have a high risk tolerance – I do not fear the risks (money & time) associated with the pursuit of something I am passionate about – writing and publishing my books (Dreamer-Entrepreneur Path).

It’s not enough to want to be rich. It’s more complicated.

There are several paths to becoming rich. Not every path is right for you.

Are you suited to be a Saver-Investor, a Big Company Executive, a Virtuoso or an Entrepreneur?

Know thyself. Choose the path toward wealth that is right for you! Put your ladder on your wall, not someone else’s wall, and keep climbing.

The path you take must align with your personality (your DNA, if you will).

If you choose the wrong path, you will not succeed. If you choose the right path, you dramatically increase your odds of succeeding.

My mission is to share my unique research in order to help others realize their dreams and achieve their goals. If you find value in these articles, please share them with your inner circle and encourage them to Subscribe. Thank You!

Thank You! Would You Like to Provide an Endorsement For My Book?

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My sincerest thanks to all of you who responded to my offer to read the raw manuscript of my upcoming book. I received an overwhelming response from my readers and my manuscript is now in the trusted hands of five readers who have graciously agreed to provide valuable feedback on my new book.

One of the standard practices of authors is to secure endorsements or testimonials for their book from famous, celebrity-types. These endorsements typically wind up on the front and back covers of their books as well as the first few pages inside their books.

Instead of following the herd, I would like the endorsements for my upcoming book, Guaranteed Wealth, to come from my devoted readers.

So, I have another request to make.

Who would like to provide me with an endorsement that will be featured in my new book?

I will send the first 10 who accept my offer, a copy of my manuscript.

In return, I am hoping you will provide me with an endorsement, which my publisher will incorporate into my book.

Real endorsements, by real people who are committed to improving their lives and the lives of their inner circle.

Thank You for your help!

My mission is to share my unique research in order to help others realize their dreams and achieve their goals. If you find value in these articles, please share them with your inner circle and encourage them to Subscribe. Thank You!

 

Hiding in Plain Sight

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49% of the millionaires in my Rich Habits Study were individuals who followed the Saver-Investor Path (4 Paths to Becoming a Self-Made Millionaire – http://richhabits.net/4-paths-becoming-self-made-millionaire/).

These Saver-Investors were ordinary people who did not have any special advantages in life:

  • They came from Poverty or the Middle-Class (Poor 41%/Middle-Class 59%)
  • They did not have high salaries.
  • They did not possess any unique set of skills.
  • They did not have any special knowledge.
  • They did not have advanced degrees or graduate from elite universities.
  • They did not inherit money from their parents, grandparents, relatives or others.
  • They did not own fancy things – their home, cars, clothes, and possessions were modest.

The reason they did not seem wealthy is because most spent 80% or less of their income and saved-invested 20% or more of that income. This forced them to live on 80% or less, and this was reflected back to the world in the form of their very ordinary lifestyle.

These individuals do not advertise their wealth. You would never know they were rich by looking at them. They are your neighbors, family, friends, colleagues at work, assistant coaches, teachers, union workers, plumbers, electricians, construction workers, Accountants, government workers, etc.

Everything about their lives screams – “I AM NOT RICH”.

Yet, they are rich. They’re rich because they followed the Guaranteed Path to Wealth – The Saver-Investor Path. A path most anyone can follow.

Becoming rich is a process. Forging smart money habits, and sticking to them during every stage of your life, is a process most anyone can follow.

My mission is to share my unique research in order to help others realize their dreams and achieve their goals. If you find value in these articles, please share them with your inner circle and encourage them to Subscribe. Thank You!

When Your Destination is Clear, Nothing Can Stand In Your Way

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In the movie, The Wizard of Oz, Dorothy must follow the yellow brick road in order to get to her destination – the City of Oz, where the Wizard of Oz lives. She needs the Wizard’s help in getting her back home to Kansas.

But that road is fraught with all sorts of dangers, obstacles and hazards. After battling seemingly impossible adversity, Dorothy somehow manages to reach Oz and, with the Wizard’s help, finds her way back home to Kansas.

The path you take in the pursuit of your dream is very much like that yellow brick road.

It’s a risky journey. You will face all sorts of problems, obstacles and have to overcome many mistakes. What keeps you moving forward is a clear picture of your destination.

You must be able to clearly see your City of Oz.

If you are pursuing a dream, what do you see at the end of your journey?

Most don’t have a clear picture of their destination in life, which is why most do not succeed. When the destination is not clear, it is impossible to complete your journey.

If you can’t see the destination, if you don’t know where you are going in life, you will get nowhere.

The end, your destination, must be definitive, clear, specific and something simple for your mind to anchor itself on to.

In order to succeed in life, you must have a clear picture of your destination.

Here are some examples of destinations to help you:

  • I want to be a senior executive at my company.
  • I want to be a full-time author.
  • I want to be a full-time speaker.
  • I want to own a house by the beach.
  • I want to have $2 million in savings by age 55.
  • I want to be a CPA, Attorney, Neurosurgeon, Astronaut, Priest, etc.
  • I want to grow my company and sell it for $3 million.
  • I want to pay off my mortgage to my home by age 50.
  • I want to sell 1 million books.
  • I want to lose 20 pounds over the next twelve months.
  • I want to run a marathon next spring.
  • I want to become a professional athlete.
  • I want to be able to bench 300 pounds.
  • I want to get rid of my high blood pressure, diabetes, or beat my cancer, etc.

When you are clear about your destination, no dangers, no obstacles, no problems, no mistakes, no uncertainties and no doubts will be able to stop you from reaching it.

Clarity gives you laser-like focus. When you are able to see your City of Oz, nothing can stop you from reaching your destination and realizing your dream.

My mission is to share my unique research in order to help others realize their dreams and achieve their goals. If you find value in these articles, please share them with your inner circle and encourage them to Subscribe. Thank You!

Who Wants To Read My Upcoming Book – Guaranteed Wealth?

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I just put the finishing touches on my latest book, Guaranteed Wealth – Smart Money Habits For Every Stage of Your Life.

I will be sending my manuscript over to my publisher this week.

Who would like to review my book and provide me with feedback?

I will send the first 5 who respond, via email, a copy of my manuscript.

TOM@RICHHABITS.NET

My mission is to share my unique research in order to help others realize their dreams and achieve their goals. If you find value in these articles, please share them with your inner circle and encourage them to Subscribe. Thank You!

Exercise Makes You Smarter

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In my five year study of the daily habits of the rich and poor (Rich Habits Study – Background on Methodology), 76% of the successful engaged in some form of daily exercise, predominantly aerobic exercise. Conversely, 77% of the poor did no exercise at all.

It’s no coincidence that self-made millionaires exercise consistently.

Researchers from the Oregon Health and Science University in Portland identified a gene, called Mtss1L, which is activated by aerobic exercise. This particular gene, when toggled on, boosts the connections among brain cells in the hippocampus, a part of the brain associated with learning and memory.

Exercise toggles it on. Lack of exercise keeps the gene turned off.

Those who consistently exercise, while engaged in the pursuit of success, have a competitive advantage over those who do not exercise. They essentially have a gene working for them, who’s sole purpose is to make them smarter.

Imagine having a gene, who’s sole purpose is to make you smarter. What an edge!

Oftentimes, the difference between success and failure, particularly among Dreamers-Entrepreneurs, is infinitesimal. Exercise gives you an edge. This edge can make all the difference in the world, tipping the scales in your favor.

Success, and the wealth that success produces, is a process. Exercise is an important part of that process.

Lace up your sneakers. Your future success may very well depend on it.

My mission is to share my unique research in order to help others realize their dreams and achieve their goals. If you find value in these articles, please share them with your inner circle and encourage them to Subscribe. Thank You!