The richest men and women in the world all understand a number of basic concepts which help lead them to the fortune they have today.
If you would like to take a look inside the minds of these great, inspirational people, then read on to learn the tips, tricks and habits that have helped them create the beautiful, successful lives that they now enjoy
Perhaps the biggest answer to financial freedom is the wonder that is passive income. Passive income is money that is earned regularly with little or no effort from the recipient in order to maintain it. For example, income from a rental property, interest on investments, royalties for licencing your material for a company to use and e-book sales are all examples of passive income.
There may be some initial work involved in getting a project up and running, but once that work is complete, the income will be regularly received without any further work involved.
Millionaires like to find ways to make money while they sleep. So creating products that will sell without any input following their inception, such as e-books, courses and resources etc are great ways to achieve this.
If you already have cash that you want to grow into more money, then consider putting it into property and real estate investments to see your wealth grow year after year and create passive income from what you already have.
Compound interest is one of the most crucial elements in making a millionaire. Compounding is the effect of earning interest on interest. If you put £1,000 into a fund that returns 10% annual interest rate (I wish), then in year two you will be starting with a figure of £1,100. In year two you will earn 10% on £1,100 and so on.
If you invest large lump sums over a long period of time then the results can be astounding. Just take a look at this graph that shows the compound interest that could be accumulated on saving £100 a month, with a 5% annual return over 10 years.
The longer you keep your money saved, the more interest you will earn. Let’s look at the results if you were to save £100 every month in the same fund, this time for 20 years.
You would be putting an additional £12,000 in deposits into your account in those extra ten years, however, the compound interest that you would accumulate across the additional ten years would be £13,775.15 – more than the value of the deposits that you put into your account in that added time.
If you can gain a good understanding of the unbelievable effects of compound interest, then you have checked off one of the most important elements of one day becoming a millionaire!
THEY HAVE SEVEN INCOME STREAMS
It’s been said before that the richest people in the world have a minimum of seven streams of income – whether its multiple businesses, affiliate income, advertising income, sponsorships, property investments etc.
Working a single job for a company that employs you is what 95% of the population does – and that’s why most people will never build wealth and financial freedom.
If you want to build wealth for your family and have the option to retire young, then find multiple different ways to earn money. Even if one income stream is only bringing you £10 a month, every penny counts. Especially if you are starting young and have years ahead of you to grow your cashflow.
THEY READ BOOKS
Investing in your education is the key to understanding how to create a successful, prosperous life. Read as many books as you can about money, investments and business. Learn more about the topics that you are interested in and that you are already good at. Become a master of your passions so that you can transform those passions into lucrative businesses. If you can get paid for doing what you love then you will never work a day in your life.
Education is the passport to the future, for tomorrow belongs to those who prepare for it today.Malcolm X
Wealthy people understand that no matter how much wisdom they already have in any given subject, there is always something new to learn. With technology ever-changing, there are always new strategies and tools to be used in whichever industry you’re in, so never stop learning. Read biographies of people who have already achieved what you are working towards and you will learn methods to fast track your way to the results you desire.
THEY ARE AWARE OF THEIR SPENDING
The richest in the world are also the most frugal. Do you see the CEO of the company you work for walking into the office every day in a different Armani suit? Probably not. My guess is that the top dogs in your workplace have a limited selection of outfits that they wear week in, week out.
Millionaires by no means scrimp on quality, but they are not over indulgent or careless with their earnings. They know where every dime is being spent, and make sure to get the best deals on products and services.
So start as you mean to go on and begin tracking your spending now. Opt for quality over quantity and always take care of your belongings so that they will last you for many years to come.
THEY SET HUGE GOALS
If your goals do not scare the absolute bejesus out of you, then you haven’t set big enough goals.
Setting goals of any kind is to be admired, however, if you set a goal that you already know you can achieve, then you are not going to end up pushing yourself to the max.
Shoot for the moon. Even if you miss, you’ll land among the stars.Norman Vincent Peale
I want you to try something while you are reading along. Stand up with your feet flat on the ground and put your arms straight above your head. Reach up to the ceiling as high as you possibly can.
Now that you have done that, I want you to just reach a tiny, tiny bit higher. Really push and reach your arms those few extra centimetres higher.
See what happened there? I asked you to reach as high as you possibly could, and at first you settled for average. Then when I asked you to reach that little bit higher, you still had some extra push in you. So why didn’t you push yourself all the way in the first place?
Set a goal that is achievable, but you’re not sure yet how you’re going to make it happen. If you’re starting your own blog, and you want to get 25,000 page views in the next 12 months, then triple it – aim for 75,000. Even if you don’t hit 75k, I’ll bet you hit a lot more than then 25k you were originally happy to settle for.
THEY DON’T WATCH TELEVISION
While watching television might be a great way for you to relax your brain, it becomes so easy to just sit there for hours watching episode after episode and before you know it, you have wasted a whole day that you could have spent working on your business.
Give the television a miss, and spend the next couple of years working hard on growing your business so that in the next three to five years you can comfortably spend a whole week watching television if you want to, because you know that your business is established and creating income passively, allowing you the freedom to spend your days doing whatever you like.
THEY TAKE ADVICE FROM THOSE WHO ALREADY HAVE THE RESULTS THEY WANT
Do not seek advice from people who don’t have the results that you want. Put it this way, would you take relationship advice from your parents, if they had an emotionally abusive relationship that ended in a messy divorce? I’m guessing not. So why think any differently when it comes to career and financial advice?
It might sound harsh, but if you take the advice of people who have a particular set of results, then the advice they give you will lead you on the same path.
If you want to lead a successful life, then absorb your mind with the wise words of the worlds most successful people who have already achieved what you are currently working towards. Watch Ted Talks, read books and listen to podcasts from businessmen and women who have built empires in your niche. You will learn their tips and strategies on how to build businesses, manage money and find a healthy balance in life.
THEY DON’T GIVE UP
Nothing great was ever achieved easily. Creating a successful business and becoming a millionaire takes a lot of hard work. Wealthy entrepreneurs always talk about how their businesses are their absolute passions – they spend hours of their lives working on building their great empire from the ground up.
Most people who reach success have heard more “no’s” than you can possibly imagine. However, the key is that they do not give up until they get the results that they want. Persistence is vital in reaching your goals. If the first ten people you ask to invest in your idea say no, then keep going. If the next one hundred people also say no, then keep going.
JK. Rowling was rejected by countless publishers when she wrote the first Harry Potter novel – some even cruelly telling her that she had no future as a children’s book writer. But she never gave up. With every rejection letter, she just moved forward and sent the script to the next publisher, until one finally gave her a chance.
In 1997, Harry Potter and the Philosopher’s Stone released its first 1000 copies and exploded almost overnight, landing her new book deals to write the sequels. Fast forward to 2019 – Rowling has sold over 500 million Harry Potter books, in 80 different languages, eight film adaptations grossing an estimated $8.64 billion, she has been named Forbes most highly paid author in the world with annual earnings of over £72 million and has a gross estimated net worth of £1 billion according to some sources.
So imagine if she had given up on her dream of becoming a writer after the first few publishers said no? She might still be the woman she was in 1996: a divorced, single mother, unemployed, living below the poverty line and clinically depressed.
Never ever give up on your dreams and passions no matter what anybody says to you, even if your friends and family don’t support you, or your ambitions seem wild. Always believe in yourself and never stop working on the projects that spark a fire in your belly. You never know, you may just be the next JK. Rowling!
THEY GET PLENTY OF SLEEP
It can be easy to stay up late and wake up early every day when you are trying to build a business. You can often feel that there are not enough hours in the day to accomplish everything that you need to get done.
However, lack of sleep makes us slow, irritable and clouds our thought process, so simple tasks take us twice as long to complete, making getting up early and working late meaningless. You would have completed the same amount of work if you had gotten your eight hours sleep because you would have been much more efficient during the hours that you’re awake.
Successful business people do commonly wake up early because it can be easier to start on work in the early morning when the rest of the world is snoozing, however, they also make sure to get into bed early if they know they have to be awake in the morning.
Adequate sleep is non-negotiable for success. A well-rested mind and body will be better prepared for problem-solving, communicating with others, maintaining a healthy diet and exercise regime, improving your mood – not forgetting that sleep is essential to maintaining a healthy heart, blood pressure levels and reducing stroke risk.
So look after yourself by ensuring that you’re getting at least 7-8 hours of sleep every night. Your body and business will thank you later in life.
THEY TAKE CARE OF THEIR HEALTH
You’re no good to anybody, including yourself, if you don’t take care of your health. Successful people understand this, and therefore make sure to eat a healthy and balanced diet, drink lots of water, exercise regularly and ensure they get enough sleep.
If you let your health take a back seat, your business and success will soon follow in the same way. Poor decisions regarding our health can seem like they don’t matter, but poor behaviours and habits catch up with us as we reach our mid-twenties.
So get into good habits now and start taking care of your body so that you can be the best, most successful and productive version of yourself you can be.
THEY GIVE BACK
Giving back is perhaps one of the most important things that successful people make sure to do. Earning a lot of money and building wealth is even more rewarding when you share your success with others.
So make sure to give back to charities and people in need. Your donations can change and save lives so make sure you are doing your part. Also, remember to look after family and friends who have helped you get to where you are today. You might not have made it to this place if it wasn’t for their support so be sure not to take this for granted.