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3 Truths Every Millionaire Knows About Money

If you want to learn about money, you must study it closely.

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There’s so much to know about the subject of money.

Money is an unlimited subject. However, like any subject, you can learn as much as you want about money. Personally, I’ve devoted my whole entire life to understanding money and the way people feel toward it.

For 21 years of my life, I experienced poverty on the deepest level. Because of this, at age 21, I decided to take my life into my own hands. Over the years, I’ve developed the understanding of what it takes to go from negative R1 700 000 in debt to complete financial independence within a relatively short period of time.

Obviously, we all need to understand that there are three stages of dealing with money: Learning, Earning, and Returning.

If you want wealth, you must learn about your thoughts, feelings and actions toward money. Then, you must start to find a way to earn your way in this world. Along the way, you return yourself and your money in the best way possible.

Related: The 10 Strangest Secrets About Millionaires

Here are three truths every millionaire knows about money:

1Be a serious student

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If you want to learn about money, you must study it closely. You can find countless numbers of successful people who wrote books and articles, gave seminars and produced videos on the subject.

All of these resources are readily available to you. Moreover, if you want to learn about money, don’t depend on your parents, school, work or other organisations to teach you about it. You must take matters into your own hands.

When I began my journey to wealth, I consumed read books copiously. I highlighted, underscored, bookmarked, recorded and reviewed every piece of wisdom I could find. When I got to the “about the author” section, I researched and called upon the author to have a conversation, connecting nearly half of the time. I also attended dozens of seminars and learned from every rich person I found.

If you want more money, you need to learn from rich people. Most of the people around you cannot teach you about wealth because they know very little about it themselves. That’s why I wholeheartedly believe that you should hire a professional coach. Once you do, you can apply your knowledge to advance to the next level.

Besides reading books and talking to people, I learned about living a wealthy lifestyle by doing wealthy activities: Visiting museums, test-driving luxury cars, touring mansions, indulging in fine restaurants, etc. Your financial education can come in various ways. If you constantly put yourself in wealthy places, you will become a wealthy person!

As Mark Twain warned, never let schooling interfere with your education.

2Don’t save money

If you want to become a millionaire in under 10 years, read this section very carefully: Don’t save ALL your money if you want explosive wealth. Let’s say you’re a healthy person between the ages of 18-55 and have an income of R600 000 per year. If you work for the next ten years and save 10 percent of your money, you’ll be able to save R100 000 per year, which will be R600 000.

However, if you poured the majority of your yearly R100 000 into your personal and professional development, your income will steadily rise each year. For example, in my first three years, I’ve more than quintupled (5X) my income.

I didn’t start saving money until my 3rd year, which was when I became a millionaire. Each year, I invest more and more money into my coaches and programs that help me grow.

Even if you invest half of your yearly savings (R30 000) in yourself, your income would still increase rapidly. It might look like this over five years: Year 1: R500 000, Year 2: R700 000, Year 3: R1 000 000, Year 4: R2 000 000, Year 5: R3 000 000. As you can see from this projection, money would be easy to save by years three to five. Imagine if you kept up with this cycle for 10 or more years!

Most of us are taught to “save for a rainy day.” Instead, invest in “sunny days,” which are days of growth and prosperity. Moreover, if you keep investing in yourself, you’ll be able to buy an umbrella to keep dry when “rainy days” come.

This unconventional advice might sound risky, but those who are able and willing to do it will enjoy the journey because of their constant advancement. Eventually, you’ll also be able to save more money in the long-term.

Your level of income will never surpass your level of personal development.

Related: 10 Powerful Habits That Will Make You a Millionaire

3Know your money

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A surprising amount of people do not know their financial affairs as well as they should. In fact, most people put their personal finances on “auto-pilot” and acquiesce in life without checking the facts.

The following systems prove this: Direct deposit, bonuses, taxes, receipts, retirement plans, interest rates, credit cards, donations and college loans.

Here are some examples of financial disasters:

  • College students who don’t know how much money they owe or even how much they’ve paid.
  • The average citizen who doesn’t know where their taxes and tithing are being distributed.
  • The majority of people who discard their receipts when they get home.
  • Salespeople who don’t know what their commissions or bonuses will be on payday.
  • The 90 percent of people in the world who face anxiety when the monthly bill arrives.
  • The direct depositor who automates all of their bills for decades and never has savings because of it.
  • The credit card holder who pays exorbitant interest rates, penalties, and fees.
  • The overwhelming massive number of people who let their employers handle their retirement planning, health benefits and life insurance.

A life insurance agent told me a story about a woman who had her insurance policy automatically deducted from her paychecques every month. After a while, she forgot that she was paying R1 700 per month. However, she was greatly dissatisfied when she found that her bill skyrocketed to R17 000 per month because of her husband’s age. She ended up paying over R170 000!

Incurring unnecessary fees should always be avoided. A simple way of handling this is by monitoring every dollar you spend on a monthly basis. Keep a ledger nearby and talk with your spouse about money. Never let a dollar slip past your sight. Overall, you should know exactly what’s in your bank account and face the truth about your personal finances.

Related: 7 Tips to Becoming a Millionaire

Take your money seriously. Don’t avoid it by delegating or automating it! Handle your money directly and be sure to keep track of all your expenditures. Always be willing to get help from people who are good with money. Money only comes to those who are ready to handle it. If you take care of R15 000, you’ll get R150 000 and much more!

This article was originally posted here on Entrepreneur.com.

Personal Finance

6 Ways To Develop A Millionaire Mindset

Chasing money has remarkably little to do with getting rich.

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If you truly want to have a million dollars, you must first be and think like a millionaire. By doing so, you will attract the necessary resources to you.

So, you want to become a millionaire entrepreneur? You’re not alone. Many dream of leaving their job and becoming their own boss, enjoying the various millionaire lifestyles we watch on TV. But there’s a difference between those who dream of becoming millionaires and those who do. And it begins and ends with mindset. If you don’t develop that mindset, you will continue to spin your wheels, working just as hard, but never going anywhere.

Developing a millionaire mindset requires you to stretch your thinking. Start by developing the following six attributes.

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Personal Finance

10 Tips To Become A Millionaire This Year

Becoming a millionaire requires changing your mindset and implementing some changes.

Murray Newlands

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Becoming a millionaire may seem out of your reach, but it’s possible with the right attitude and guidance. The fact of the matter is your income can only grow as quickly as you do, so you need to change your mindset to achieve your goal of becoming a millionaire.

Once you have a millionaire mind, you can’t lose it, no matter what financial or business mistakes you make along the way. To get yourself there, you’re going to need some structure. To help you, I’ve outlined the top ten tips you should follow to become a millionaire this year.

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Personal Finance

If You Think These 5 Things, You’ll Never Get Rich By The Time You’re 30

Five common mistakes entrepreneurs make when starting a business and how to correct them.

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Last week, I had lunch with a millennial who wanted some advice about a business he’s starting. After the usual small talk, we got down to discussing his business plan. Within a short time, it was clear that his business idea was great, his plan for executing was fairly solid and he had gathered together a strong team to help him make it happen.

So far, so good. But, to be frank, this guy has no chance of being successful with his current mentality. What it takes to be rich (or successful in any measure) has a lot more to do with your mindset than your ideas and plans.

From the time we started in business at the ripe ages of six and seven, our Grandpa Joe taught my brother Matthew and me many lessons about the details of running a profitable business. Over the years, we learned about how to create a business plan; how to market our products and services; and how to take care of customers, vendors and employees. All this knowledge has been invaluable to us in creating and running successful businesses. But, what our grandfather taught us about attitude and mindset trumps all other lessons.

Without calling out the specific individual I spoke with recently, below are five “hypothetical” attitudes that will get you nowhere in your journey to success – and the attitudes that should replace them.

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