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20 Things Millionaires Aren’t Sharing With You

Want to find the secret sauce that helps regular people achieve wealth? Here are 20 insights that millionaires aren’t sharing that can help you become a tycoon too.

Nicole Crampton

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Here are 20 secrets to wealth creation that millionaires aren’t sharing with you

Richard Branson virgin companies

Richard Branson

Millionaires have particular habits and strategies in their daily lives that result in them becoming wealthy.

There are 46 500 millionaires, 2 060 multi-millionaires and 639 ultra-high net worth individuals (+ 30 million) in South Africa, according to Knight Frank’s Wealth Report 2016. This shows that more people are figuring out how to achieve financial freedom, but the question remains; how are they doing it?

Spend less than you earn

dave-ramsey

Dave Ramsey

Over the long run, you’ll be better off if you strive to be anonymously rich rather than deceptively poor.

“Financial peace of mind isn’t the acquisition of stuff. It’s learning to live on less than you make, so you can give money back and have money to invest. You can’t win until you do this,” says Dave Ramsey, an American businessman, author, radio host, television personality, and motivational speaker.

The more money you don’t spend the more you can accumulate and invest, and turn into passive income, which in turn will grow your wealth.

Related: 4 Bad Money Habits That Have Left Millionaires Broke

Keep your focus

Charlie Munger

Charlie Munger

You won’t become a millionaire overnight, so you’ll need to keep your focus and remain patient until it happens.

“If you took our top fifteen decisions out, we’d have a pretty average record. It wasn’t hyperactivity, but a hell of a lot of patience. We stuck to our principles and when opportunities came along, you pounced on them with vigour,” says Charlie Munger, vice chairman of Berkshire Hathaway.

Numerous millionaires make it to their end goal by saving and investing, and slowly over time they become millionaires. Patience and focus can help you achieve your wealth goals.

Weigh-up value versus worth

Warren Buffett

Warren Buffett

The reason people are reaching millionaire status is because they aren’t buying the flashy cars and the fancy houses. They’ve learnt from Warren Buffett’s example and they still live in the same house and they still drive ten-year-old sedans.

“Too many people spend money they earn to buy things to impress people that they don’t like,” said Will Rogers, a stage, motion picture actor and social commentator.

It takes a particular type of person that doesn’t care what people think, and is focused on their goal to forgo spending money to impress others.

Related: The 6 Attributes Shared By Young Millionaires

Pay off your monthly debts

SUZE ORMAN

Suze Orman

As any financially savvy person knows, no matter how much you earn, if you still have debt it’s going to eat away at your income.

“The only way you will ever permanently take control of your financial life is to dig deep and fix the root problem,” says Suze Orman.

It may not feel like you’re moving forward by paying off your debt, but once it’s gone everything extra you make can start earning interest and growing your wealth.

Money will never buy happiness

Coco Chanel

Coco Chanel

Money does allow you to achieve financial freedom, but remember: “There are people who have money, and there are people who are rich,” says Coco Chanel. Money can provide an easier life, but that should not be mistaken for happiness, you’ll need something else to drive you to achieve millionaire status.

“Happiness is not in the mere possession of money; it lies in the joy of achievement, in the thrill of creative effort,” Franklin D Roosevelt said.

Related: (Slideshow) Best Advice From Self-Made Millionaires

Financial freedom is a mind-set

ROBERT KIYOSAKI

Robert Kiyosaki

Financial freedom is a state of mind that comes from being debt free, which you can attain regardless of your income level.

“Financial freedom is a mental, emotional and educational process,” says Robert Kiyosaki.

You need to have the right mind-set to achieve the millionaire status or you won’t make it to the finish line. When you have no debt, you can take more risks.

“Every risk is worth taking as long as it’s for a good cause, and contributes to a good life,” adds Richard Branson.

Have multiple sources of income

Dave Ramsey

Dave Ramsey

Getting a second job not only increases the size of your income, but also keeps you busy, and a busy person doesn’t have time to spend the money they already have. Never depend on a single income. Make investments to create a second one,” says Warren Buffett.

On the other hand, if you aren’t knowledgeable in the stock market, then perhaps start your own business on the side.

“The best thing you can do is start a home-based business,” adds Dave Ramsey.

Related: 15 Ways Millionaires Manage Their Money That Make Them Richer

Manage your money to attain growth

T. Harv Eker

T. Harv Eker

You can’t expect your money to grow and mature if you aren’t using some form of credible money management.

“The single biggest difference between financial success and financial failure is how well you manage your money. It’s simple: To master money, you must manage money,” says T Harv Eker.

Without financial management, your money isn’t going to do anything, you need to be proactive and work your money every day to ensure maximum growth.

“If you look at the average amount of money you will earn over your lifetime, and figure out how many years you are working, most people earn more than a million dollars over their working life, but very few people become millionaires,” says Nancy Butler, a certified financial planner.

“How they manage what goes through their fingers usually makes the difference.”

Pay yourself first

pay-yourself-first

Paying yourself first means saving before you do anything else

Paying yourself is an essential strategy of personal finance and a great way to build your savings and instil financial discipline.

“Paying yourself first means saving before you do anything else,” says David Blaylock, a financial planner.

“Try and set aside a certain portion of your income the day you get paid, before you spend any discretionary money. Most people wait and only save what’s left over — that’s paying yourself last.”

Paying yourself first will allow you to grow your wealth and increase your principle investment every month.

Related: 6 Skills Of Self-Made Millionaires That You Should Be Using, Too

Have a passion for your work

Steve Jobs

Steve Jobs

People say you have to have a lot of passion for what you’re doing and it’s totally true. The reason is because it’s so hard to succeed in business that if you don’t, you might give up. You have to do it over a sustained period of time. So if you don’t love it, if you’re not having fun doing it, you don’t really love it, you’re going to give up. And that’s what happens to most people.

If you really look at the ones that ended up being ‘successful’ in the eyes of society and the ones that didn’t, oftentimes it’s the ones who were successful that loved what they did, so they could persevere when it got really tough. And the ones that didn’t love it quit because they’re sane, right? Who would want to put up with the stuff if you don’t love it?

“So it’s a lot of hard work and it’s a lot of worrying constantly and if you don’t love it, you’re going to fail,” said Steve Jobs.

Don’t underestimate a well thought-out plan

Denis Waitley

Denis Waitley

As the saying goes, if you fail to plan, you’re planning to fail. Millionaires that reach this milestone without a plan, usually, get there through luck, and what are the odd that’s going to be you?

“The reason most people never reach their goals is that they don’t define them. Winners can tell you where they are going, what they plan to do along the way, and who will be sharing the adventure with them,” says Denis Waitley, Human Achievement Expert.

It’s not enough to declare that you want to be financially free; you have to work out every step to get there.

Related: The 10 Strangest Secrets About Millionaires

Set big hairy audacious savings goals

Henry Ford

Henry Ford

Don’t be afraid to think big when setting your savings goals.

If you always do what you’ve always done, you’ll always get what you’ve always got,” said Henry Ford.

Don’t be afraid to really go after what you want even if it’s hard, or you’re uncertain you can make it.

Financial success demands that you have a vision that is larger than you can currently deliver on.

Work harder than anyone else

Mark Cuban

Mark Cuban

Hard work can often help to make up for a lot of financial mistakes throughout your journey to success, and you will make financial mistakes.

“I still work hard to know my business. I’m continuously looking for ways to improve all my companies, and I’m always selling. Always,” says Mark Cuban.

Hard work can literally set you apart from your competition and help you to reach your goal faster.

“There is no such thing as overnight success or easy money. If you fail, do not be discouraged; try again. When you do well, do not change your ways. Success is not just good luck: It is a combination of hard work, good credit standing, opportunity, readiness and timing. Success will not last if you do not take care of it,” says Henry Sy, Sr.

Related: 5 Things Millionaires Do That Most People Don’t

Ensure your long term success by insuring yourself

Arnold Schwarzenegger

Arnold Schwarzenegger

Bankruptcy is a reality and can come for you at any time. It can be triggered by variables including: Death, divorce, disability or even a poor investment.

“If you have made mistakes, even serious ones, there is always another chance for you. What we call failure is not the falling down, but the staying down,” says Mary Pickford.

When you insure yourself against risk it gives you time to course correct and save your future.

“Strength does not come from winning. Your struggles develop your strengths. When you go through hardship and decide not to surrender, that is strength,” says Arnold Schwarzenegger.

Time is most precious

warren-buffett-talents

Warren Buffett

If you begin saving in your twenties, you can take maximum advantage of the power of compound interest for your savings.

“No matter how great the talents or efforts, some things just take time. You can’t produce a baby in one month by getting nine women pregnant,” says Warren Buffett.

Remember that you’re playing the long game, and sometimes the only way to achieve millionaire status is to keep doing what you’re doing for long enough.

Related: 8 Tips To Become A Millionaire This Year

Keep your money hidden from you

hidden-money

You can’t spend what you can’t see. You should use debt orders to pay your retirement and other savings accounts. As your salary increases, you can painlessly increase the size of those deductions to ensure you put money aside every month.

“If you want to get rich, you’ll need to save what you earn. A fool can earn money; but it takes a wise man to save and dispose of it to his own advantage,” says Brigham Young.

Pay off your large scale debt

large-scale-debt

Once you’ve paid off your house and any other large scale items, you can direct those payments into your savings as well.

“To acquire money requires valour, to keep money requires prudence, and to spend money well is an art,” says Berthold Auerbach.

Ensure you’re spending your money on what really matters and not just the interest on your debt.

Related: How To Go About Making Your First Million

Your salary’s only half the story

Robert Kiyosaki

Robert Kiyosaki

Climbing up the corporate ladder will only get you so far, eventually you will have to make your money work hard for you.

“It’s not how much money you make, but how much money you keep, how hard it works for you, and how many generations you keep it for,” says Robert Kiyosaki.

Generating income from passive, rather than active, income sources is the best way to do this.

Timing isn’t (always) everything

investment-opportunities

Are you looking at other forms of investment?

No one can really predict the market; in order to be wealthy you can’t moonlight as a day trader.

“Time [period] is more important to investment success than timing,” explained Peter Lazaroff, a financial planner.

“Most of the population believes that timing the market’s moves is the key to growing rich through the stock market. The wealthy, however, understand that time and compound returns are the most important factor in growing wealth.”

Achieving millionaire status requires investors to adopt a buy-and-hold strategy, ride out market fluctuations and ignore rumour and speculation.

Related: Becoming A Self-Made Millionaire: 5 Things To Do To Become Wealthy

Value vs cost: Understand the difference

Value vs cost

Value vs cost.

Paying for consultants to give you insights into growing your wealth shouldn’t sound counter-intuitive, especially if this isn’t your area of expertise.

“The wealthy person has three best friends: Her attorney, her accountant and her adviser. The wealthy tend to use the law and tax code to their advantage when figuring out how to maximise their wealth, especially over multiple generations, and they are not afraid to spend money up front for counsel to get these answers,” says Justin Kumar, a portfolio manager.

“The wealthy look at value over cost, but they are still prudent in their decisions.”

Next slideshow: 15 Wise Money Quotes From Millionaires And Billionaires

Robert Kiyasoki

Robert Kiyasoki

Nicole Crampton is an online writer for Entrepreneur Magazine. She has studied a BA Journalism at Monash South Africa. Nicole has also completed several courses in writing and online marketing.

Personal Finance

(Infographic) The Financial Advice Millennials And Gen Zers Want To Know

Having a grasp on your financials is tricky, but it’s crucial if you want to be successful. And that starts with getting the right advice.

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Whether it’s saving for retirement or paying off credit card debt, money management can be a challenge. Of course, different people have different concerns – and that often comes with age. While a 60-something baby boomer might be organising their savings for retirement, your 20-something millennial might be focused on paying off student loans.

In a recent study, financial intelligence company Comet surveyed more than 1 000 people to uncover the top financial concerns of various age groups, as well as the financial advice millennials and Gen Zers want to know and what they hear instead.

Overall, saving for retirement was the top concern across all age groups, with saving for an emergency and affording monthly bills following in second and third. However, it’s no wonder these are some of the most pressing worries – according to the research, 23 percent of people admit they don’t have a savings account, and 43 percent reported not being on track towards their retirement goals. Perhaps that’s because they didn’t hear the right advice growing up. At least that might be the case for Gen Zers and millennials.

According to the research, these young people want to learn things such as how the stock market works, how to manage an investment portfolio, how to invest in real estate and how to build credit. Instead, they’re simply told how to create a budget, save for retirement and pay credit card bills in full every month.

Related: 7 Critical Things Your Financial Advisor Must Meet

Having a grasp on your financials is tricky, but it’s crucial if you want to be successful and comfortable. To learn more, check out Comet’s infographic below.

1532099434_2-cents-worth-infographic

Related: Financial Wellness Coach Nelisiwe Masango Shares Retirement Wealth Advice

This article was originally posted here on Entrepreneur.com.

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Personal Finance

14 Ways To Make Quick Cash On The Side

If you need money quickly, here are some solid ideas.

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Need to make some fast money on the side, whether it’s to pay off a credit card or to make your rent?

Keep in mind, making quick side cash isn’t about making a lot of money or getting rich. It’s about getting a shot of capital to help tide you over and put something extra in your pocket. However, some of these side-income ideas can build up your wealth over time. There’s many ways to accomplish this: By participating in the gig economy, the sharing economy, online sales networks, passive income techniques and more.

If you’re looking to make extra money in a relatively short period of time, check out these 14 slides.

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Personal Finance

Take Advantage Of Financial Democracy Made Possible By The New Stock Exchanges

Why should financial democracy matter to entrepreneurs?

Etienne Nel

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Because it creates a society able to afford products and services. Without it, even the innovative products and services that are entrepreneurs’ bread and butter will fail.

What is financial democracy, exactly?

It’s both the right and the ability of the (wo)man in the street and business people to make the decisions that affect their financial circumstances.

Financial democracy does not automatically follow political democracy. For almost 25 years after South Africa’s political transformation, the exclusiveness of our financial markets continued to deprive the vast majority of South Africans of the means to invest, save, and build wealth. South Africa has, therefore, never developed a retail stock exchange environment. So, it has deprived the majority of small and medium sized business of access to capital.

For entrepreneurs to truly flourish, they need a mechanism that easily and seamlessly connects the investor pool with every size of business. And, they need affordable ways to enter both the retail and institutional market.

In short, they need stock exchanges. Ones on which listing takes weeks rather than years, doesn’t break the bank for listing fees, and provides the shortest route to the largest possible potential investor base.

That’s not been possible in the stock exchange monopoly that existed for six decades. Now, it is.

What’s changed?

We now have four new stock exchanges. The resulting competitive environment will significantly reduce the cost of listing – and the cost for investors of buying and selling shares.

Instead of restricting share trading to people or organisations who already have tens of thousands of rands to invest or millions to spend on listing, by licensing four new stock exchanges, the Financial Services Conduct Authority (FSCA, formerly the FSB) has recognised that most financial decisions do not call for high levels of education.

Related: The Role Of Foreign Exchange In The Economy

Most people know how to spend their own grocery money. Most know that it’s better to keep their R1 000 monthly income in a coffee jar than spend R50 of it on bank account fees. People who can barely read and write are immensely skillful at manipulating air time deals to their advantage.

There is significant financial savvy in all social strata.

In the same way, although the mechanics of bookkeeping and accounting may be unfamiliar territory to many entrepreneurs, most have a clear understanding of the difference between profit and loss.

The FSCA has therefore enabled democratisation of the financial markets by enabling the broadest possible spectrum of entrepreneurs and investors to use stock exchanges to participate in and contribute to the economy – on their own rather than prescriptive terms.

How do you take strategic advantage of this democratisation?

  1. Base your business strategy on people’s instinct for making decisions in their own best interests. Trust financial decentralisation, such as one sees in crowd funding and in digital environments such as block chain, where people would far rather trust one another than institutions and governments. This is democracy innately at work in the financial environment and it’s accelerating organically as digital technologies give people more means and the confidence to help themselves – to information and opportunities. Ride the wave.
  2. Tap into people’s desire to innovate. Consumer organisations have proved that letting people interactively help them develop products is a powerful growth engine. Apply the principle by letting people grow your business by buying shares in it, giving you capital and themselves a platform on which to build wealth.
  3. Remember, the ultimate loyalty reward is equity.

Your financial democracy business plan

Look to list on an entrepreneurial stock exchange; one that was founded by entrepreneurs on entrepreneurial principles.

That means: A stock exchange that is already built on financial democracy and decentralisation. One that has, at its core, a single operational concept that keeps things simple for you, automatically gives you an immediate competitive advantage, and, ensures that no matter what your business needs in terms of attracting capital, the exchange can provide all the options in the same, consistent way.

What does such an exchange look like?

It has fintech capabilities. So:

It slashes your listing costs. It achieves this, among other things, by enabling you to populate an electronic prospectus, demonstrating your financial viability, and self publish.

It gives you control by having the granularity and agility to impose relevant governance right down to the individual investor. You get to decide the types and quantities of investors you want to attract. This also enables you to achieve black economic empowerment in perpetuity.

It leads the world by clearing and settling trades in T+0. No-one in the value chain has to hold large sums of money for days following a transaction. Small transactions become profitable. Investors don’t have to risk their life savings on a single large trade. A retail market is opened. An investment and savings culture is entrenched. The economy expands. Your business grows steadily.

It enables anywhere, any time trading via a mobile app that allows investors to see share value in real time. See economy expansion point above.

It integrates processes and procedures, simplifying them and ensuring rapid onboarding of issuers and, therefore, speed to market with new concepts and alignment with the digital economy.

It operates a principles-based regime. So:

It treats you, as an executive, with respect. It’s not prescriptive. It does not insist on excessive oversight, allowing the Companies Act to guide you to sustainability.

It does not attempt to squeeze your company into a pre-defined business or listings format. It recognises and works with your uniqueness.

It obviates the need for expensive specialist listings advisors.

It focuses on financial inclusion and access. So:

Shares can be bought and sold for no more than R1 000. See economy building point above.

Related: 27 Of The Richest People In South Africa

The new world of stock exchanges is integrated, synergistic, holistic, organic, self-fulfilling

Decentralisation of financial control, democratisation of opportunity leads to a whole new economy. One in which, for instance, a taxi operator can finance a minibus through a company in which his purchase gives him shares. A single purchase gives him two benefits: a vehicle on which to found his business and a longer-term investment in shares that he can trade. The funding company gains liquidity through access to a wider base of investors while being able to control who buys and sells and the conditions on which trading takes place. Increasing black equity in business becomes an organic, natural, self-perpetuating process.

Everyone wins in a decentralised, democratised financial market. And it’s the stock exchanges that drive the process.

As an entrepreneur, can you afford to ignore the acceleration that listing could give your business growth?

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