I found this article in wisebread.com and thought I should repost it in this blog. Whilst a foreign content a lot of what it advises very well suits our locality and economy. Enjoy it and do visit wisebread.com for lots of life saving personal finance articles.
1. You Work for Someone Else
When you work for someone else, you’re essentially trading time for money, and there are two problems with this strategy:
- You only have so much time to trade
- Someone else is in charge of setting how much your time is worth
So, while it’s not impossible to reach millionaire status while working for someone else, it doesn’t happen often.
Does that mean you should run out and quit your job? No, but it does mean you should start looking at your time as a valuable commodity and rethink how you’re spending it. Then, find a way to start moving toward a more profitable way of spending your days, a way that pays you for your talent and ability rather than the number of hours you’ve worked or the amount your pay-grade says you’ve earned.
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Maybe you start out by moonlighting or maybe you save up until you can take the big leap. Either way, the path is the same. (See also: 9 Ways to Earn Extra Cash)
And if you’re not hip to venturing out on your own, then you need to find another way to increase your income. Maybe you become very good at moving up the corporate ladder, or maybe you become remarkably savvy at investing, or better yet, maybe you do both. The point is, if your goal is to be a millionaire in a reasonable amount of time, you’re the one that will have to make that happen.
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2. You’re Not Trying
While most millionaires are looking for ways to increase their wealth, the rest of us are simply looking for ways to pay our bills. This mindset has a direct effect on how much money you make.
When I first launched my freelance career, I had a clear number in mind. I knew that I had to make X amount of dollars to pay my bills and keep my household running smoothly. Interestingly, that’s exactly the amount of money I made, month after month, year after year. Whatever amount I needed, that was the amount I made, and for the longest time, I felt pretty proud of my ability to meet my obligations.
But then I realized that I was still just working to pay my bills, trading time for money, even if I wasn’t driving downtown to do it. I had changed the method by which I earned my paycheck, but it was still just a paycheck all the same.
And oddly enough, once I made this realization, once I set aside that mental “must-have” number, my income started to increase. I may not have made my first million yet, but I’m finally starting to see the path that will get me there.
If you want a million dollars, then set out to make a million dollars. There’s nothing wrong with “doing what you have to do” to get by, but don’t let that become your goal.
3. You Don’t Believe
Ask anyone — and I mean anyone — if they’d like to be rich, and most won’t even hesitate before saying yes. But ask those same people if they’re certain they’ll become rich, and you’ll find that the answers aren’t nearly as confident.
That’s because the average Joe or Jane doesn’t really believe they’ll ever be millionaires.
They’d certainly like to believe it, but their doubt resonates much louder than their desire. As long as that’s true, the wealth they desire will elude them.
Now, this commitment to becoming rich might sound like something out of a new age book, but the fact remains that it is a common trait among the real-life wealthy. And if becoming a millionaire is really what you want to do, then you have to believe that it will happen, come hell or high water. (See also: 5 Lessons From Millionaires)
This is why Donald Trump can go from having millions in the bank to millions in debt to millions in the bank again. He believes he is supposed to have money. Think what you will about Trump, but the fact remains that he keeps coming back, no matter what financial obstacles life might throw his way.
When faced with bankruptcy and over $900 million in personal debt in 1991, do you suppose Trump ever, even for one second thought, “Well, this is it… I guess I’ll just throw in the towel?” And incidentally, he didn’t just make this comeback once. Trump has filed for corporate bankruptcy three more times since then, and according to analysts, he’s now worth more than he was before the bankruptcy.
How’s that for a testimonial to the power of positive thinking?
In the words of Warren Buffet, “I always knew I was going to be rich. I don’t think I ever doubted it for a minute.”
4. You Don’t Trust Your Instincts
Catherine L. Hughes didn’t start out as an obvious success story. At 16, she was a teen mom. She attended college, but never finished. Yet, despite her slow start, she used her job at a local radio station to propel her career, and eventually secured a position as the General Manager of Howard University’s radio station. Not long after, she and her husband bought their first radio station, and Radio One was born.
Then came the divorce. Hughes was able to buy out her husband’s shares in the station but was forced to sleep on the studio floor with her son because they couldn’t afford to live anywhere else. Her mother pleaded with her to let the station go and find a more suitable life for her and her son.
But Hughes stuck to her guns and today, Radio One is a multi-million dollar media company. “Sometimes,” says Hughes, “the ones who love you the most give you the worst [business] advice. If I had listened to my mother…. there would be no Radio One.”
Who have you been listening to? Maybe it’s time to get a second opinion. Or maybe it’s time to start listening to your gut and seeing just how far you can fly.
5. You’re Waiting
In his book, How Rich People Think, author Steve Siebold writes, “…while the masses are waiting to pick the right [lotto] numbers and praying for prosperity, the great ones are solving problems.”
Yes, this is one of those harsh realities I mentioned earlier, but that doesn’t make it any less true. What’s more, we have a tendency to apply this mentality to all aspects of our lives, and that leaves us in a perpetual state of limbo. We’re waiting for our boss to give us a raise or a promotion. We’re waiting for our partner or spouse to make us happy and fulfilled. We’re waiting on the government to fix the problems in our world, solve unemployment, create better programs, and lower our taxes. We’re waiting for the right time, for more money, or for a better opportunity.
In fact, if you think about it, we’re always waiting for something. All that waiting is keeping us from achieving what we really want and, more importantly, what we could really become. As long as you’re waiting, someone else is in control of your future. And if someone else is in control, you’ll never get to where you want to go.
6. You Need to Revamp Your Relationship With Money
In a 2012 post for Entrepreneur.com, Grant Cardone writes,
Who says, ‘Money won’t make you happy’? People without money. Who says, ‘All rich people are greedy’? People who aren’t rich. Wealthy people don’t talk like that. You need to know what people are doing to create wealth and follow their example: What do they read? How do they invest? What drives them? How do they stay motivated and excited?
And he should know.
Cardone is an entrepreneur, international speaker, best-selling author, and sales and training expert for Fortune 500 companies. He makes a living off teaching others how to make a living and all of his success comes down to mindset.
Cardone isn’t the only one pointing to our dysfunctional love affair with money. Finance diva Suze Orman has written at length on the importance of a healthy relationship with money and treating it with respect: “Your money is governed by how you treat it: it’s that simple. It thrives when you are being responsible, respectful, and doing honorable things with it.” And to do that, you have to get past this idea that wanting it — and being committed to getting it — somehow makes you a bad or selfish person. (See also: Make Plans for a Better Relationship With Money)
I’m going to quote Siebold one more time as well: “[The middle class] sees money as a never-ending necessary evil that must be endured as part of life,” he writes. “The world class sees money as the great liberator, and with enough of it, they are able to purchase financial peace of mind.”
Now, think about how you see your money. Is it a means to an end? Or a strategic tool in your life plan arsenal?
Does it bring you joy, or does it cause you stress and worry? Figure that out, because when you revamp your relationship with money, it’s surprising how many doors will start to open up.