This week on Money & Investing, Mitch Olarenshaw and I share the 10 Financial Habits of Millionaires. If you’re aiming to achieve financial independence or even join the ranks of multi-millionaires, these proven strategies are essential. Practical, insightful, and backed by real-life experiences.
1. Read books
Expand your knowledge and skillset by reading regularly. Books like Atomic Habits by James Clear can reshape your mindset and improve decision-making. Audiobooks and podcasts are also excellent tools for learning on the go.
2. Practise delayed gratification
Self-discipline is critical. Success often stems from resisting short-term desires in favour of long-term rewards. The renowned “marshmallow experiment” exemplifies this habit.
3. Choose relationships carefully
Surround yourself with positive, growth-focused individuals. Avoid negative influences and cultivate meaningful personal and professional connections.
4. Create and stick to a budget
Budgeting is not restrictive—it’s a tool to align spending with your long-term goals. For both personal and business finances, managing cash flow is vital.
5. Avoid bad debt
Minimise high-interest debt, such as credit cards or buy-now-pay-later schemes. Focus on good debt, like investments that provide long-term returns.
6. Save more than you spend
Build an emergency fund with at least three months’ worth of expenses. This provides financial stability and reduces stress during unexpected circumstances.
7. Control your ego
Stay grounded as your wealth grows. Avoid overspending or seeking external validation through material purchases.
8. Seek good tax and structuring advice
Learn the rules to legally retain more of your earnings. Effective tax planning and proper structuring can have a significant impact.
9. Build multiple income streams
Avoid relying solely on one income source. Diversify through investments, side hustles, or businesses to lower risks and enhance earning potential.
10. Invest your money
Saving alone won’t create wealth. Invest in assets like property, shares, or businesses to grow your financial portfolio. The first investment may be the hardest, but it lays the groundwork for future success.
For more info about Money and Investing you can go to the podcast; read The Wealth Playbook: Your Ultimate Guide to Financial Security and The Wealth Playbook on Audible.
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