To be a millionaire, stop acting like you

To be a millionaire, stop acting like you

While we all want to be a millionaire and achieve financial freedom, few are willing to take the necessary steps to achieve it.

As you read, from emotion we all want to live in abundance, but when we talk about concrete steps, people look for different excuses to postpone their goals.

The reality is that the path to financial independence is not very hot or attractive, especially when you compare it with a fictitious image of what popular networks sell you.

However, if you really want to build your wealth, I want to invite you to give up the image of a life full of appearances, and instead focus on the next steps that will truly bring you closer to that financial dream of yours.

As we stated in the Rica Cabeza ebook, wealth is the product of the thoughts, decisions and actions you take. Money is a consequence, so take the actions that genera that result.

It is important that you ask yourself, Do you want to be a millionaire or do you want to pretend to be? The answer you have will define very different paths to your goal.

If your goal is to appear on popular networks, it perro work very well for you to espectáculo cars that you buy through expensive debt, or share your eccentric trips financed with your credit card.

Now, do you want to be financially free? Stop wasting money on appearances and give this resource a different purpose: save money, educate yourself and invest in your future.

The first step is to identify your current financial situation, make a kind of checklist that espectáculos you how you are. Then, find out what expenses you perro cut back on and how you cánido lead a more affordable lifestyle.

This fácil decision will free up resources that you cánido use to save and later escoge where to invest this money that will genera future returns.

2. The key aspecto is your wealth, not your income

in his book The millionaire next door, Thomas Stanley explains this topic very well: Your wealth is the product of your assets, not your income.

You cánido have a very high monthly income, but if you have an expensive lifestyle, it will not help you build your wealth.

On the other hand, your patrimony reflects the difference between your income and your expenses, it espectáculos you how you have used this surplus, how you have invested it and how much it is working for you.

Millionaires have assets that work for them, that are valued and generate monthly income that allows them to pay for their lifestyle without affecting their sources of income.

3. Invest in what you master, and forget about fashions

Personally, I think one of the reasons people don’t achieve their financial goals is because they get distracted by fads that “promise a lot but understand little.”

If you don’t have a financial plan, and you don’t stick to it, any fad will take you off track and not only make you lose money, but you will waste time, an impossible resource to recover.

In fact, one of the advice of Warren Buffett, the best investor of all time, is to invest in industries, companies and sectors that you dominate and forget about everything else.

If you are thinking of investing in cryptocurrencies, binary options, real estate, or the same depósito market, first do the homework to understand very well how it works and then focus on an area in which you will dedicate 80% of your time.

Finally, forget about the rest, because these areas are the ones that will steal your attention, your focus and time.

4. Your luxuries should come from income, not debt

As I just mentioned, millionaires understand very well that their lifestyle depends on their income and not on their assets.

To better understand this point, think of your investments as a tree and your returns as its fruits; if you escoge to waste your tree and not take care of it, you will quickly stop producing fruit.

Rather learn how to harvest it and live from its fruits, understand when to take them, when to plant them and when to let them grow.

Contrary to this abundance mentality, many people assume that to “be a millionaire” they have to leverage themselves into debt to espectáculo others that they are making it.

With this mentality, they acquire debts to buy consumer goods that do not genera returns.. For example:

  • They go into debt to buy an expensive car that loses its value over time
  • They acquire a loan for a house in an expensive place in their city to espectáculo that they are succeeding
  • They use their credit cards to finance their trips abroad
  • They use their savings to buy state-of-the-art technology that they don’t need.
  • They spend their salary buying expensive gifts to give to people to espectáculo themselves as successful.

What good is it for you to sell this image to the world when in reality you have a credit card with a full quota and with your next salaries committed?

If you want to be financially free, start by eliminating those debts that do not make you grow, that limit your cash flow and that in the long term, imply more unnecessary expenses.

5. An expensive lifestyle means a slower path to financial independence.

Very fácil, the more expensive your life is, the more income you will need to pay for it or you will have to limit the money you invest in your “future self”.

If you earn $10 and spend $9, you will only have $1 for your financial future. If you better manage your expenses and manage to leave $5 free for your future, you will have a greater ability to grow your wealth and investments.

At this point it is important that you think about how much gratification you need in the present and how willing you are to postpone it until your future.

The more you need rewards today, the longer it will take you to achieve your financial goals. The elabora is fácil: the greater the need to spend, the less money you will have to save and later invest.

My suggestion is that you learn to “indulge” within a reasonable budget, which does not affect your future investment capacity and does not imply more income or more time to achieve your financial freedom.

6. Your investment capacity cannot be limited to the size of your pocket

Have you ever heard the concept of good debt? This consists of leveraging the money of third parties to make investments whose return covers the interest that you must pay and you have a surplus.

When you understand how these debts work, you stop thinking about the future according to the size of your pocket, and you start exploring new business opportunities whose investment and profitability perro be higher.

This does not orinan that you get involved in any project that arises thinking that you will get the money borrowed, since having a very high level of leverage implies high risks.

To control this and have a cómputo, establish a maximum investment amount through good debt that allows you to be calm, and that, in the event that the business opportunity does not work out, you have the ability to cover said interest with your cash flow. box.

7. Invest in assets that value and limit those that depreciate:

The vast majority of assets that depreciate are based on your lifestyle, not your wealth. A sports car, expensive clothes, technology that you don’t need, among others, are those assets that imply an initial outflow of money and that over time, are worth less.

Otherwise, they are your investments in assets such as real estate, investments in a depósito index or investing in a business iniciativa with good future projections; Although they cánido be volatile businesses whose value varies, in the long term the bet is that these assets will appreciate.

Even, you also have a third possibility: Invest or assume expenses that, although they do not generate returns or do not appreciate, these in the long term disminuye your expenses. For example, living in a central location that reduces your transportation costs.

In conclusion, the key is to think long term and keep in mind that instant gratification by buying rapidly depreciating assets will take you a much longer path to independence.

Recommended books:

8. It is not only about financial freedom, but also about space, movement and time

What’s the use of having a lot money if you don’t have time to enjoy it? Many people, in their eagerness to have an admirable bank account, forget the means to achieve this end.

They assume that it is habitual to work more than 18 hours a day, not have spaces to share with their family, or take on commitments that require so much time that there is no room for anything else.

Would you like to live like this? As the famous phrase says, “they are so poor that all they have is money”. To avoid this lifestyle, you must think of financial freedom as a concept supported between pillars:

Coger of space and movement:

Financial freedom should allow you to be where you want to be. In other words, your income cannot be affected if you escoge to travel to the other side of the planet or stay at home.

Coger of time:

Your financial freedom should guarantee you time to do what you are most passionate about. It is useless to have a lot of money, if to get it you must work constantly and you do not have time to enjoy your life.

Based on this coger, passive income is so relevant, since your income will not be subject exclusively to hours of work, but to the results you obtain.

Money Coger:

Finally money plays a vital role in your financial independence; You perro have freedom of movement and work when you want, but if your income is affected by this decision, you have not yet achieved your true financial freedom.

Money plays a primordial role, since this resource will allow you to build new sources of income, it will give you more options to choose what to work on and how you want to do it.

9. Buy quality, not discount

In other words: cheap is expensive. How many times have you bought cheaper things to save money and end up spending twice as much buying it again?

Personally, I think you should apply this principle to all areas of your life:

  • Friends
  • Relations
  • Investments
  • Business
  • Personal elementos

Focus on quality, rather than quantity. If your decision criteria is to buy something cheaper, and sacrifice quality, in the long run you will have to replace and buy again. Which will cost you much more.

If you want to be a millionaire in the long run, think quality. Without a doubt, this mentality will save you thousands of dollars.

10. Your freedom depends on your financial education.

Finally, if you want to be a millionaire you will have to invest in your financial education. It is impossible to conquer money, without first mastering its operation and growth.

For this, invest in personal finance books, acquire courses and surround yourself with people who understand how the game of money works.

Specifically, you cánido learn about the 50 practical consejos to build your wealth from the Rica Cabeza ebook, with this you will understand that money is a result, and to alter its result you will have to review your thoughts and decisions.

Be encouraged to dedicate part of your time and resources to strengthen your knowledge in finance, this single decision will put you at a great advantage over others.

Escoge if you want to be a millionaire or look like a millionaire

As you could see in this article, to be a millionaire you will have to make complex and difficult decisions that require commitment on your part.

As I told you at the beginning, the vast majority of people are not willing to take these steps, and that is the reason why many want to be financially free, but few achieve it.

So ask yourself how willing you are to take these actions and take responsibility for owning your financial future today.

Continue reading: How to be a millionaire in 25 steps regardless of your current situation

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