Who wants to be a millionaire? I’m sure everyone except millionaires, because now they want to be billionaires.
There are about 56 million millionaires in the world and in Africa? 125 thousand.
I know this might seem far-fetched with the state of the economy in Africa, but I assure you, this works and has proven results.
So the question is, who are these people called Millionaires and what are they doing right?
Here are 5 traits of people who hit 7 digits steadily.
- They save 20% of their income: Remember the 50-30-20 budgeting rule?! Well, studies show that the savings rate of a millionaire is between 20% and above. Obviously, this is easier to follow if you make more money but this is still a good path for financial freedom. So, be frugal. Most millionaires have money-friendly habits such as having a budget, buying used cars or items, investing a good chunk of their income before they can spend it and much more. They also have a good idea for where they want their money to go and a pretty good idea of where it went.
When people say they want to be millionaires, what they really mean is, “I want to spend a million dollars”, which is literally the opposite of being a millionaire.
- They own a reasonably priced house and live in it for a long time: Classic example is our very own great investor & billionaire – Warren Buffett. Warren has been living in a house he bought at $31,500 for the past 64 years. This is important because when you live in a pricey neighbourhood, you tend to act and buy like your neighbours. The price of the house you buy is correlated to everything you spend money on – budget, debt, utility. etc Most millionaires have never purchased a home that costs more than triple their income.
If you spend money on things, you will end up with the things, not the money.
- They are long-term accumulators: Depending on how you look at it, 75% of millionaires created their wealth, they didn’t inherit it, and it also didn’t happen overnight. They play the steady game of earning, saving and investing wisely. If you don’t want to wait till old age, your options are to make a lot of money quickly or save a lot aggressively.
If you save 10% of your income, you have to work more than 50 years, if you save 30% of your income, you only have to work 28years, move it up to 50%, you could cut it down to 17years.
- They own multiple businesses: Either a large percentage of millionaires own their own company or most have multiple streams of income. You don’t have to go out and create your own company but you do have to own one and should own many. Goodnews, it’s pretty easy to do, how? Just invest in the stock market! When you own a stock, you are a legitimate part-owner of the company. In fact, Spectrum Group studies show that smart investing is the key to 72% of millionaires. The bulk of their money is in the stock market.
- They keep getting better and better: Millionaires continue to improve in all aspects of their life – mind, body and wallet. They don’t just limit their self-improvement to health, studies also show that they read to increase their knowledge about their job, industry. etc.
Wealth is not just having a lot of money but having a lot of options.
– Chris Rock
So, what number do you need to give you options? A million, a billion or a trillion?Whatever the number, build your wealth with Bamboo.