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4 Bad Money Habits That Have Left Millionaires Broke

The fundamental mistake newly-rich people often make is to think they have so much money they can’t blow it all.

John Rampton

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Millionaires are known for having habits like carefully planning and spending their money wisely, constantly educating themselves, waking-up early, and especially for taking care of their health.

But, we have all seen the millionaires who don’t have those self-control habits. Those millionaires who connect-up with a spouse or partner who hasn’t had money before and doesn’t know that money has to be taken care of.

The millionaires who just plain do the opposite of what it takes to make and keep money – and they have bad habits that ultimately leave them broke.

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

Here are four of those most common habits of millionaires who have gone broke:

1They didn’t track their spending

bill-gates

Whether you’re a freelance writer or Bill Gates, everyone needs a budget. When looking at your money, you should be tracking every penny you spend. Set a budget and know where every penny goes.

I personally recommend watching the little costs that we normally don’t pay attention to.

The R100/month accounts add up over time. The more of them you have, the more money will be going out of your account each month.

While this is a habit that most millionaires follow, millionaires in the process of going broke are not watching and following their money – they do the opposite. They cannot even tell you where it went. These soon-not-to-be millionaires don’t even go-over their bank statements or monthly bills to make sure that there aren’t any unauthorised transactions.

They also don’t look at bills from restaurants, hotels or retail purchases, much less the grocery store, to make sure that they weren’t overcharged. They also don’t compare prices for items they routinely purchase, such as their cell phone bill.

In the end, these millionaires waste a lot of money simply because they don’t track their spending. It may not seem like much of a problem in the beginning, but it can quickly add-up. In the end – well – no money is a problem.

Related: 15 Wise Money Quotes From Millionaires And Billionaires

2They made pricey and emotional purchases

Millionaires who are going broke have a nasty habit of making emotional purchases. For example, when they’ve had a bad day at work they may go on a Amazon spending spree, or they may determine a couple of times a week that they have to have DoorDash because they are depressed about something and don’t want to cook.

Most millionaires are frugal and known to be careful with their spending. They avoid making emotional purchases because millionaire emotional purchases tend to be a bit more spendy than Amazon. These are often the expensive “sink the boat” type purchases.

Remember M.C. Hammer and his gold-plated driveway gates emblazoned with the phrase “Hammer Time” and his 21 racehorses? He would have done better to sit on the couch with a quart of Häagen-Dazs Ice Cream and zone out to an old movie.

One interesting thing about the millionaires who stay rich is that many use coupons, look for the best bargains, and cause a scene if they’re overcharged. Then, they’ll turnaround and go on a luxurious European vacation or purchase an item like a massive diamond ring. One of my best friends is a multi-billionaire. Last week I was over at his house and heard him on the phone arguing with a company over a R400 charge.

Be frugal no matter what stage of life you’re living.

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

3They didn’t have multiple streams of income

Eike Batista,

Eike Batista,

Author Thomas C. Corley’s five-year study of self-made millionaires discovered that a majority of them have multiple streams of income. In fact, 65 percent of the millionaires he studied had three streams of income, while 35 percent had four streams.

However, not all millionaires follow this multiple stream rule. Take the case of Eike Batista, a Brazilian businessman who was worth an estimated $35 billion. Batista truly believed that nothing could hurt or even slow down his oil and gas business, OGX. This company was his crown jewel. But when oil production slowed he was forced into bankruptcy.

“Having multiple income streams makes a lot of sense,” says Corley. “When one stream is negatively affected by systematic economic downturns, of which you have no control, the other streams can come to the rescue and help you survive the downturn, without seeing your lifestyle dramatically affected.” This also means that you follow the rule of, “not putting all of your eggs in one basket.”

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

4They were Impatient, aggressive investors

Unlike long-term investors who are patient and remain calm, aggressive investors use “The Wolf of Wall Street” as their playbook. They pick stocks on a hunch and then unload their investments panically when things start heading south.

Even worse, because they were successful making millions, they believe that don’t need the advice of educated investors and rely on their own street smarts or delusions of grander.

The bottom line is, educate yourself about your money.

Protect your money, watch your money, take care of your money so that you, too, won’t be a broke millionaire.

This article was originally posted here on Entrepreneur.com.

John Rampton is an entrepreneur, investor, online marketing guru and startup enthusiast. He is founder of the online invoicing company Due. John is best known as an entrepreneur and connector. He was recently named #2 on Top 50 Online Influencers in the World by Entrepreneur Magazine and has been one of the Top 10 Most Influential PPC Experts in the World for the past three years. He currently advises several companies in the San Francisco Bay area.

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

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

It costs nothing to take advantage of the limitless opportunities online.

Timothy Sykes

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The hardest part of becoming successful is getting started to begin with. But despite the challenges ahead of you, there’s a way to become a millionaire when starting with little. I’m going to show you four reasons why you can become a millionaire with just a small investment.

1. First focus on learning, not big gain

Education is your greatest weapon. Focus on learning in the beginning. Don’t make the mistake of focusing on making huge gains in the beginning. Learn everything you can because this is how you build the foundations for long-term gains.

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

They say that if a millionaire goes bankrupt they’ll nearly always be able to get it back. And that’s because they might have lost their money, but they have the knowledge of how to get back to where they need to be.

2. You can learn loads about any topic online

online-learning

I’m grateful for the internet. It’s the single biggest library in the world. You’re reading this article right now and you’re acquiring knowledge you wouldn’t have been able to acquire 40 years ago.

Use the internet to its fullest extent, whether that’s through reading books, browsing articles or watching video tutorials. Set some time aside every day to learn something online. It could be a video series or a favorite blog.

When you get into the habit of learning regularly you’ll find that you advance much faster.

3. Focus on the niche you love

These days you can learn about anything and target the niche you’re passionate about.

This is what I was able to do with penny stocks. I found a gap in the market and provided knowledge to people who wouldn’t have otherwise being able to access this sort of information.

You can do that with absolutely any niche. When you find a niche you’re passionate about and you use the reach of the Internet you start to make huge gains.

4. Prove your expertise by creating free content

Your reputation as an authority is the new business card. There’s a reason I created a penny stock guide and made it free for all. You may have already seen ads for it on social media. The way to succeed with little is to create a reputation through your content.

Related: How To Become A Millionaire, Explained In 1 Minute

It’s the gateway to success because through free content you start to build relationships with others who value your work. And from there everyone gets richer.

You can do lots with a little

The days when you needed a huge investment to become successful are long gone. These days you can do so much with just a little. Find what you love, advance your knowledge in that area, and create a product that fulfills a need. Finally, work on building up relationships through portraying yourself as an authority on your subject.

Combine everything together and you can accomplish anything.

This article was originally posted here on Entrepreneur.com.


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

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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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