8 Steps To Develop A Millionaire Mindset
Reading Time: 9 minutes Have you heard of the term ‘millionaire mindset’?
What if I told you the majority of millionaires don’t own super yachts and drive around in Lambos all day? What if I told you a million dollars wasn’t that much money?
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Have I struck a chord? Did you feel a little bristle of indignation at that last one?
Good, because that means this post is for you and might just change your financial future.
Mindset is a crucial key factor in becoming a millionaire and staying a millionaire. Let’s get into it.
How To Develop A Millionaire Mindset
First, Why Are We Focusing On One Million, What’s So Great About That Number?
When invested properly, one million dollars may provide you with $40,000 per year in interest.
I understand for some people that amount would not be enough to fully sustain them.
But I think we can all agree that for the majority of people, an extra $40,000 per year would go a long way to reducing the need for full-time work for all members of the household.
That extra $40,000 would add masses of financial security and open up many possibilities such as:
- no longer having to work
- being able to pay off debt
- becoming a stay-at-home parent
- starting your own business
- buying a rental property to further increase income
Amassing a million is a pretty good thing to do for your average household.
Why Mindset Matters
The right mindset is everything.
There is no get-rich-quick scheme. Everything takes planning, dedication and a solid mindset. Even passive income streams take some effort to set up before they become passive.
Because, even if I did have a get-rich-quick scheme that actually worked, without the correct mindset you would probably end up pissing all the money up the wall anyway. Sorry but it’s true.
What Is A Millionaire Mindset?
A millionaire mindset is a way of thinking and being that means all your actions automatically contribute towards financial security and wealth building.
*Note* Before we really dive into the ins and outs of a millionaire mindset I just wanted to make everyone aware of this:
Most people tend to fall into a ‘saver’ or ‘spender’ category with money and it’s often the ‘spenders’ that get the most flack.
Now obviously if you are spending every cent you earn then you do not have a millionaire mindset and you certainly won’t be able to secure a million.
However, it’s important to realize that savers can be just as bad in the millionaire mindset department.
Often I find that the ‘saver’ types are quite fearful of money which means they allow their money to control them.
Or they make poor financial decisions such as keeping all their money in a savings account with the bank rather than investing it.
This means that over time their money reduces in value because it does not keep up with inflation. And it’s these kinds of money decisions that can hold ‘savers’ back from actually getting their million.
How To Develop A Millionaire Mindset
I have created a list of eight aspects of the millionaire mindset so you can develop your mindset too!
1) You Need To Believe You Can Have The Money
This is the most important point on the list so pay attention.
A lot of people, often without realizing it, have what I call a ‘not for the likes of us’ mentality when it comes to wealth and having enough money.
Side note – I class enough money as enough to not need to work and still be able to have the life you want. Your definition may be different.
They intrinsically believe that they will and can only ever be poor because people like them just don’t get rich.
You need to stop thinking like this immediately. It’s so damaging and so not true! There are thousands of rags-to-riches stories and the only reason it’s them and not you is this mentality.
Figure out why you think like this, and then figure out how to stop. There could be some deep-seated psychological issues involved so therapy may be needed to help with this and that is okay. You need to get this issue sorted.
Anyone can sell things and make money online – you are no different than the 20-year-old college student whose making $5,000 per month from owning niche sites.
2) You Need To Stop Always Buying The Latest Stuff And Keeping Up With The Jones
You definitely will have heard this one before.
Keeping up the Jones and always buying the latest of whatever is cool is the route of all routes to ensuring you never have enough money.
Buying stuff does not bring happiness. Learn how to be happier with less, I recommend looking into minimalism if you know this step is an issue for you.
Just remember Warren Buffet still lives in the family home he bought over 50 years ago.
He is someone with an incredibly developed millionaire mindset which can be illustrated by his lack of desire to buy a huge fancy house that he could most definitely afford.
There is no keeping up with the Jones in the Buffet household.
3) You Need To Remember You Are Not Entitled To Something Just Because Someone Else Has It Or Because You Think You Deserve It
This very much leads on from aspect 2 above. The Millennial generation gets a lot of bad press for having an ‘entitled attitude’.
Now I’m going to be a bit controversial here and say there is only one place where that attitude could have been taught, the generations that raised them.
But controversial statements aside, buying things out of entitlement is everywhere. Car loans, mortgages on houses of an unnecessary size, finance on home improvements or furniture.
Just because you can get a loan for it does not mean you’re entitled to it. Just because your neighbor has one does not mean you’re entitled to it.
Just because you’ve worked crazy hard today or every day for the last 20 years, does not mean you’re entitled to it.
You know what you are entitled to things like human rights, the opportunity to earn money to feed your family and buy shelter, freedom of speech, the opportunity to make a better life for yourself and self-expression.
A brand-new truck is not an entitlement.
And it is most definitely not an entitlement if you can’t pay cash for it.
4) You Need To Recognize That Money Will Control You If You Let It
This one is super simple, if you don’t take control of your finances they will control you.
For example, if you spend willy nilly for the first two weeks of the month you may suddenly find your card is declined.
Now money is controlling you because you have no money left until the beginning of the month again.
If however you had been conscious of what you were spending and ensured it was within budget then you could still be using your money for the whole month.
5) You Need To Actually Get A Hold Of Your Finances And This Includes Financial Education
Get educated and get a hold of your finances, I’m talking budgets, net worth, you know those sorts of things.
Without financial education how will you know what to do with your finances?
You need to start reading and learning. Now, that doesn’t have to be conventional learning like at school or college.
Although if that’s your bag then find a class and go for it.
However, it can be as simple as reading this blog, I mean the main purpose of our website is to educate on financial matters and help people enter the creator economy, after all.
With all that financial education you will then easily be able to get a hold of your finances, work out your net worth, figure out some money goals and start a business that works for you.
6) You Need To Have Clear Financial Goals To Keep You On Track
Financial or money goals are so necessary to your millionaire mindset, they give you your WHY of why you’re being sensible with money.
This post all about money goals is well worth a read if you know this is an aspect of the millionaire mindset you struggle with.
But for example, if you get bonus or make a big sale in your business, you might first think: “I’m going to go on a shopping spree!
Instead, realize that your first and automatic thought wasn’t one of a millionaire’s mindset.
Then check it and reframe your though to something like; “no that isn’t what I want to do with my money because it is not in line with my goals and nor is it part of the new millionaire mindset I am developing.
I’m going to put most of this money towards acquiring a new revenue-generating asset (or paying off my mortgage), and use a small amount to go out to dinner and celebrate my new business acquisition (or mortgage payoff).”
Still having fun but, with your millionaire mindset employed, you will be well on your way to your first million!
7) You Need To Stop Seeing Buying “Stuff” As A Good Thing
By “stuff” I don’t mean items necessary to live and have a good life.
I’m not suggesting you should stop buying healthy organic food, or making investments in your business that generate growth and more money.
I’m talking about stuff that you buy that you really don’t need or care about.
Think about it, how many times have you bought something at Home Goods that seemed to catch your interest at the store but five minutes after getting home and putting it on a shelf, you’ve already lost interest in it?
Do you see now why perceiving ‘stuff’ as beneficial might be misleading? It’s a trap.
You accumulate things you don’t really need, seeking a temporary thrill from new purchases. But this leads to an endless cycle of acquiring more unnecessary items, further fueling a desire that never truly satisfies.
It’s a pattern of wanting more without real fulfillment.
If this is something you struggle with try a “no-spend challenge” for a week or even just a few days.
You’ll likely find yourself missing the act of purchasing rather than the actual items.
This experience reveals how often we buy things we neither want nor need, highlighting the habitual nature of unnecessary spending
8) You Need To Treat Money As A Tool, Not Something That Goes Away
A lot of people say something along the lines of ‘might as well spend it now as I can’t spend it once I’m dead’. That sentiment suggests that unless you are spending the money it’s wasted.
Stop thinking like this!
Money is not something to be spent; it’s something to be used. This is a very different and crucial way of looking at it.
If you only see money as a spending device then yes, of course not spending it looks like a waste. But if you see it as having a multitude of uses then your money becomes a lot more logical.
Do you think millionaires see money only as a spending device?
Of course not. They see it as a tool to get what they need, want and desire. Things like financial independence, security, education for their children, and peace of mind so that if something happens they can handle it.
And when they do spend money they don’t see it as spending, they see it as a tool for facilitating something else. So they don’t spend money on dinner with friends, they use money to enjoy an evening with friends where the food is cooked so they can focus entirely on their companions in a nice setting.
Notice the difference?
8 Steps To Develop A Millionaire Mindset – Conclusion
To wrap up, developing a millionaire mindset is about more than financial acumen; it’s about reshaping your approach to challenges, opportunities, and self-improvement.
These eight steps are key to developing a mindset that prioritizes strategic thinking, resilience, and continuous growth.
Adopting this mindset not only steers you toward financial success but also enriches your life with purposeful achievements and meaningful progress.
Truthfully, I know it can be really hard to change your mindset. In fact, it took me a few years to really get my millionaire mindset on track, and I still have to keep a check on myself.
So whatever you do, don’t feel guilty or like a failure if your automatic thought isn’t millionaire mindset style. Just be conscious of it, and correct it.
Tell me what you think of a millionaire mindset. Have you got one, or is it something you need to work on? Or perhaps you disagreed and think a millionaire mindset is not needed, tell me in the comments below!
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