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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.

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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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Personal Finance

5 Habits That Lead To Millionaire Business Success

You need the right habits if you’re going to succeed.

Timothy Sykes

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What do all millionaire businesspeople have in common? Well, a lot of things.

I found from a recent study that 80 percent of all millionaires still go to work every single day. They’re working people just like me. But, they have to keep themselves in work or it all grinds to a halt. So what are the habits you need to make your business a success?

1. Patience

Nothing is ever going to come easy. You can look at the likes of Steve Jobs and Bill Gates, as well as the other usual suspects, to realize that success didn’t come with their first venture. Many of them failed time and time again. It took patience for them to become successful.

I read an article recently about 36-year-old teacher Andrew Hallam who became a self-made millionaire on a teaching salary. But, in his spare time he invested smart and lived frugally.

It proves you don’t have to inherit lots of money or become an instant success to make a millionaire business.

Related: 4 Ways To Become A Millionaire Even When You Start With Little

2. Dedication

You have to be dedicated to your craft if you’re going to become successful. Going back to Bill Gates again, he started his business in the back of his garage. Now that’s dedication.

It’s what I tell all my students. If they’re not dedicated to this, then they should leave. You need to be able to push through the barren periods if you’re going to reach the oasis of success.

3. Ambition and big dreams

Have you ever heard the quote, “Shoot for the moon. Even if you miss you’ll land among the stars”?

I take that to heart because even if you aim to become a billionaire and miss you still might be a millionaire many times over. Take the Wright Brothers as an example. Not content with creating a successful glider in 1902 they went on to create the world’s first airplane in 1903, making four brief flights in Kitty Hawk. It demonstrates the importance of dreaming big because you never know what you might achieve.

Related: 12 Millionaire Habits To Start Making Serious Money Soon And Build Wealth In A Hurry

4. Learn from mistakes

Every good businessperson will mess something up. It’s inevitable. What’s important is how you learn from your mistakes over time. Do you adapt after making your mistakes?

Millionaire businesspeople always set some time aside to reflect. Then they create a plan of action for ensuring that it doesn’t happen again. Most failed businesspeople put it down to “bad luck.”

5. Focus on niches

This important! Try to take over a whole industry at once and you’ll inevitably get swallowed up by the competition. Start small and control your own niche before moving into another niche. When you master your small area, you can push on and expand.

Related: 21 Choices Millionaires Make That You Aren’t Making But Should Be

You’ll be amazed at how much easier it is to expand after you master your own niche/audience first.

Do you have what it takes? That’s the question I always ask novice businesspeople. You need a plan and you need the right habits if you’re going to succeed.

This article was originally posted here on Entrepreneur.com.

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Personal Finance

The 3 Decisions That Will Change Your Financial Life

There’s nothing worse than a rich person who’s chronically angry or unhappy. There’s really no excuse for it, yet I see it every day. It results from an extremely unbalanced life, one with too much expectation and not enough appreciation for what’s there.

Tony Robbins

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Without gratitude and appreciation for what you already have, you’ll never know true fulfilment. But how do you cultivate balance in life? What’s the point of achievement if your life has no balance?

For nearly four decades, I’ve had the privilege of coaching people from every walk of life, including some of the most powerful men and women on the planet. I’ve worked with presidents of the United States as well as owners of small businesses.

Across the board, I’ve found that virtually every moment people make three key decisions that dictate the quality of their lives. If you make these decisions unconsciously, you’ll end up like the majority of people who tend to be out of shape physically, exhausted emotionally and often financially stressed. But if you make these decisions consciously, you can literally change the course of your life today.

Decision 1: Carefully choose what to focus on

At every moment, millions of things compete for your attention. You can focus on things that are happening right here and now or on what you want to create in the future. Or you can focus on the past.

Where focus goes, energy flows. What you focus on and your pattern for doing so shapes your entire life.

Related: 10 YouTube Channels Every Entrepreneur Should Follow

Which area do you tend to focus on more: What you have or what’s missing from your life?

I’m sure you think about both sides of this coin. But if you examine your habitual thoughts, what do you tend to spend most of your time dwelling on?

Rather than focusing on what you don’t have and begrudging those who are better off than you financially, perhaps you should acknowledge that you have much to be grateful for and some of it has nothing to do with money. You can be grateful for your health, family, friends, opportunities and mind.

Developing a habit of appreciating what you have can create a new level of emotional wellbeing and wealth. But the real question is, do you take time to feel deeply grateful for your mind, body, heart and soul? That’s where the joy, happiness and fulfilment can be found.

Consider a second pattern of focus that affects the quality of your life: Do you tend to focus more on what you can control or what you can’t?

If you focus on what you can’t control, you’ll have more stress in life. You can influence many aspects of your life but you usually can’t control them.

When you adopt this pattern of focus, your brain has to make another decision: 

Decision 2: Figure out, What does this all mean?

Ultimately, how you feel about your life has nothing to do with the events in it or with your financial condition or what has (or hasn’t) happened to you. The quality of your life is controlled by the meaning you give these things.

Most of the time you may be unaware of the effect of your unconscious mind in assigning meaning to life’s events.

When something happens that disrupts your life (a car accident, a health issue, a job loss), do you tend to think that this is the end or the beginning?

If someone confronts you, is that person insulting you, coaching you or truly caring for you?

Does a devastating problem mean that God is punishing you or challenging you? Or is it possible that this problem is a gift from God?

Your life takes on whatever meaning you give it. With each meaning comes a unique feeling or emotion and the quality of your life involves where you live emotionally.

I always ask during my seminars, “How many of you know someone who is on antidepressants and still depressed?” Typically 85% to 90% of those assembled raise their hands.

How is this possible? The drugs should make people feel better. It’s true that antidepressants do come with labels warning that suicidal thoughts are a possible side-effect.

But no matter how much a person drugs himself, if he constantly focuses on what he can’t control in life and what’s missing, he won’t find it hard to despair. If he adds to that a meaning like ‘life is not worth living,’ that’s an emotional cocktail that no antidepressant can consistently overcome.

Yet if that same person can arrive at a new meaning, a reason to live or a belief that all this was meant to be, then he will be stronger than anything that ever happened to him.

When people shift their habitual focus and meanings, there’s no limit to what life can become. A change of focus and a shift in meaning can literally alter someone’s biochemistry in minutes.

So take control and always remember: Meaning equals emotion and emotion equals life. Choose consciously and wisely. Find an empowering meaning in any event, and wealth in its deepest sense will be yours today.

Once you create a meaning in your mind, it creates an emotion, and that emotion leads to a state for making your third decision:

Related: 13 Habits Of Self-Made Millionaires You Could Adopt Today

Decision 3: What will you do?

The actions you take are powerfully shaped by the emotional state you’re in. If you’re angry, you’re going to behave quite differently than if you’re feeling playful or outrageous.

If you want to shape your actions, the fastest way is to change what you focus on and shift the meaning to be something more empowering.

Two people who are angry will behave differently. Some pull back. Others push through.

Some individuals express anger quietly. Others do so loudly or violently. Yet others suppress it only to look for a passive-aggressive opportunity to regain the upper hand or even exact revenge.

Where do these patterns come from? People tend to model their behaviour on those they respect, enjoy and love.

The people who frustrated or angered you? You often reject their approaches.

Yet far too often you may find yourself falling back into patterns you witnessed over and over again in your youth and were displeased by. It’s very useful for you to become aware of your patterns when you are frustrated, angry or sad, or feel lonely. You can’t change your patterns if you’re not aware of them.

Now that you’re aware of the power of these three decisions, start looking for role models who are experiencing what you want out of life. I promise you that those who have passionate relationships have a totally different focus and arrive at totally different meanings for the challenges in relationships than people who are constantly bickering or fighting.

It’s not rocket science. If you become aware of the differences in how people approach these three decisions, you’ll have a pathway to help you create a permanent positive change in any area of life.

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