Surely millionaires are doing it right. In today’s blog, we discuss what several real millionaires have in common when it comes to working, spending, and saving.
Turn a passion or a hobby into a business
Kenny is a beekeeper. He has been interested in bees ever since he was a small child. Kenny was maintaining quite a few hives on his property, and he had a lot of extra honey. He made good money selling the honey at farmer’s markets on the weekends, but he knew he would need to do more than that to make money on a large scale. He combined his love and knowledge of medieval history and his interest in honey bees into making mead, which is fermented honey (similar to wine). He now runs a very successful Meadery, complete with medieval-themed tasting room.
Take wise risks
No one has achieved anything without taking a risk. Obviously, one has to consider the risks beforehand. Not all chances are worth taking. The return has to be worth the risk. Risk so paralyzes many people that they end up doing nothing or they just dump their money into something that is not well thought out.
John rehabs houses. He started with very little money but had excellent credit and a good job. He combined the wise use of financing, choosing the right properties in the right neighborhoods, and excellent networking skills to find a knowledgeable partner and mentor, to build a thriving house flipping business.
Money just sitting in the bank is a waste
Think of money as employees. They work for the person who possesses it. One could let them sit in a bank account wasting time, or they could be kept busy working.
Sandy is the one person on this list who isn’t a millionaire. He fixed up his house and sold it and deposited a large check. It sat in his checking account for months, for he was afraid to re-invest it. What if the market tanks? What if he needed it for an emergency? Slowly but surely, he spent it all. He wisely spent some of the money on the settlement of debts, but he used the rest to finance poorly planned-out business ideas. If he had better educated himself, he wouldn’t have wasted that money. He could have been a millionaire already if he had put that money to work instead of letting it just sit there.
You’ll never get rich just by working in a job
Ivan emigrated to the US as an 8-year-old. His parents were college-educated and very industrious. They took the typical immigrant path and started off in menial jobs. His father worked in a butcher shop and drove a cab. His mother worked in a nail salon. They worked a lot, saved a lot, and reinvested the extra money into purchasing first one cab, eventually a fleet of cabs, into a nail salon, a deli. They kept selling businesses and reinvested the proceeds, combined with judicious use of loans, into ever-larger enterprises. The point here is that they didn’t just stay at that one job for 30 – 40 years. They jumped into running businesses as soon as they could and used the cash from wages to build their businesses.
Education is the key to it all
All of these people used education to advance their interests. Some learned from books; some gained knowledge by doing. Some of the most valuable education they received was by choosing a mentor, coach, or partner. They all learned from their mistakes, both small and large. If you’ve had a minor financial misstep, don’t allow it to derail you from your financial goals. An emergency loan may be the right solution to get you back on the path to economic wellness. Contact BMG Money today!