11 secrets to getting rich from self-made millionaires

Fiona Smith, a master of science in personal financial planning in the US, has 7 years of experience as an investment advisor and has worked with 453 self-made millionaires, thereby drawing out 11 secrets to making money, keeping money and enjoying money from this group of people.

Spend on yourself first

The average millionaire saves and invests about 64% of their income. They never spend more than they earn and always spend money on their legitimate desires.

Of the more than 400 millionaires Fiona Smith has worked with, most share the same thought: "Live like a secret millionaire today so you can become a real millionaire tomorrow."

No inflation in lifestyle

Lifestyle inflation occurs when spending levels go in line with income. That means when income increases, people tend to want to spend more to satisfy themselves.

According to psychology, people who grow up in families with limited finances are more likely to encounter temptations such as wanting to buy flashy things to make up for their frugal past.

But for millionaires, the key to success is to avoid this inflationary lifestyle because it can easily deplete wealth. Therefore, you need to accurately calculate essential expenses such as rent, food, bills; transfer the remaining amount to savings, investments; and absolutely do not indulge yourself in unnecessary things.

Use money to make money

Money in the bank neither increases nor decreases in value. But if you know how to invest properly and in the right place, it will help money make more money.

Understanding this principle, millionaires invest small amounts, avoid risks and continuously learn. This allows their money to accumulate, increase over time and help them create more wealth.

Many self-made millionaires say they know how to make small amounts of money grow and reap big profits through smart investing (illustrative photo)

Generate multiple streams of income

Most millionaires know the classic saying "Don't put all your eggs in one basket" and understand that creating multiple streams of income is a smart solution, says Fiona Smith.

For the rich, they always have many different sources of income to ensure a stable financial situation. Not to mention, this action also helps them reduce pressure every time they go to work because if one source of income is difficult, there are still other sources to compensate.

Adopt healthy financial habits

In the financial world, maintaining healthy habits is the only way to success. For example, people who use some automation tools to create a habit of paying for necessary activities, then saving and investing.

According to experts, clearly distinguishing expenses helps them avoid spending money on unnecessary things. In particular, spending at the right time and place is a pillar in the thinking of millionaires.

Stay away from bad debt

Many people complain about being constantly in credit card debt due to overspending. While smart people only spend enough and absolutely do not abuse credit cards.

Besides, after each salary, you need to reduce spending as much as possible, pay off all outstanding debts and deposit the remaining amount into a savings account.

Build an emergency fund

According to experts, preparing a reserve fund in advance helps you not to be passive even when facing difficulties or incidents.

But in reality, not many people are well prepared for this. Fiona Smith’s survey found that 63% of Americans don’t have enough money to cover an emergency with $500. That means they’re forced to use credit cards or high-interest loans, which can have disastrous consequences.

So the best way is to save at least 3 to 6 months of living expenses to have a reserve fund.

Develop a network of relationships

Building a network of associates, customers, and acquaintances will allow millionaires to easily access interested or relevant people. Through that, they will take advantage of opportunities to provide products, build brands, or access new ones.

It is most noticeable that today's millionaires often build their networks through email, WhatsApp groups, Telefram, Facebook, Zalo, and phone contacts. Admitting that developing a network is a slow but steady process, all the millionaires Fiona Smith has ever met emphasize the importance of this work.

Do not buy consumer goods

According to a recent survey, most luxury cars will lose about 60% of their value after 5 years of use. Millionaires know this well, so most of them do not pay much attention to their transportation. Instead, they are willing to use old cars and save money to invest in stocks or real estate.

Focus on health

After working with more than 400 millionaires, 76% of respondents exercise more than 30 minutes a day, showing that they understand that they cannot enjoy wealth if they lie in bed all day.

So everyone needs to exercise diligently, eat healthy foods and spend time in nature. Because everyone knows that health is the basic foundation for doing great things, the most obvious of which is making money.

Always learning

In fact, up to 85% of millionaires read books for more than 30 minutes a day. Books provide knowledge, giving people the opportunity to learn and contemplate from the greatest minds from the past to the present.

So if you want to succeed, never stop learning. Like the genius Albert Einstein once said: "I have no special talents, I am just very curious about everything."

According to VnExpress