Just as our habits are the foundation of our physical well-being, the real secret to being a millionaire isn’t only knowing which stocks to buy but which habits to maintain. Here are 17 of the best habits millionaires possess:
#1: Wake up early
Few people are naturally morning people, but, one can cultivate the habit of rising with the dawn. Ease into it by getting up a half hour earlier for a week, but, don’t just use that time for extra coffee; use it to improve yourself whether by working out or flexing your financial skills by keeping tabs on what you determine are stocks to watch.
Knowledge is power and learning new things helps keep us young. Decide what you want to focus on and delve in. For example, if you want to earn a little extra through trading penny stocks, read trader biographies. Read up on technical analysis and articles about NASDAQ stocks. Studying stock charts is a great way to “read” if you have little time, but try to set aside at least 15-20 minutes daily for actual in-depth reading. The easiest way to do any and all of these forms of reading is with a subscription to blogs like this one or the Wall Street Journal.
#3: Set a budget
While many wealthy people do enjoy their nice things, having a budget and actually sticking to it is one of the most common habits shared by the millionaires studied by authors Thomas Stanley and William Danko for in The Millionaire Next Door. There’s some credence to the old stereotype that rich people are actually the stingiest because they are usually disciplined about their budget.
Treat your own personal finance just as you would if you were buying stocks for a living.
#4: Track your spending
Part of being able to set and stick to a budget is knowing exactly how you spend your money. This means keeping track of every dollar you spend to better understand your habits. Pay attention to spending habits and patterns like what you spend money on and with whom. Being able to properly manage money when you have little is key to helping you retain money once you have it, whether through a promotion or ROI from hot penny stocks.
#5: Watch the Little Things
This partly means that your personal budget and tracking should account for every penny! That buck you spent on coffee counts! More specifically for traders, pay special attention to little costs that add up over time like subscriptions to chatrooms and research tools. The transaction fees and hidden costs associated with buying stocks online can all up to take a notable bite out of your ROI.
#6: Save Up!
Part of setting up your budget should include setting aside some of your income in savings (most experts recommend 5-20%). Things happen and having savings in place is what’ll let you bounce back. You could lose your job for example. Even the low capital required of stocks under 5 doesn’t guarantee protection against any loss. Just like mom and dad told you, save your money for a rainy day!
#7: Prioritize your schedule
So many people want to be rich, but, feel they don’t have the time to learn how to invest properly or learn which stocks to watch. But, be honest: how much time do you spend daily goofing off on the internet or watching TV?
#8: Find a mentor
If you’re serious about becoming a millionaire, find somebody who’s done what you want to do and then learn from them. If you wanna make money trading hot penny stocks, find out who has already and read up on how they got there. Learn from the mistakes of others.
#9: Get comfortable with risk
The bigger the risk, the bigger the reward. This is true in life and in business. Even though buying penny stocks requires little startup capital, it’s not totally free from the potential of loss. Larger ventures such as starting a business or buying stocks worth more money provide greater rewards, but, come at a greater risk.
Have a clear understanding of your personal goals and review if what you own, your choices in buying stocks, or your career interests are truly working together to help you achieve those goals.
#10: Define your idea of success specifically
Don’t just aim to become “rich.” Have specific goals you’re working towards, whether that’s a certain net worth, an exact annual income or having enough money to buy a prized possession. You need to know what exactly success means to you in order to achieve it.
#11: Set clear goals
Once you have your own definition of success, you need clear goals to on how to get there. The difference between a dream and a plan is goals. The more detailed and clear your overall plan and the goals to get there are, the easier it’ll be to follow this like a road map to success.
#12: Visualize results
This is what will serve as your light at the end of the tunnel since so many of the habits listed so far aren’t sexy or fun or even lighthearted. Imagine yourself in the luxury car you plan to buy once those hot penny stocks pay off!
#13: Don’t allow the fear of failure to hold you back
Most successful people are familiar with failure. The trick is to learn from your mistakes. For example, maybe those NASDAQ stocks you bought turn out to be poor performers, but, that’s how you learn to spot better stocks to buy in the future. After all, part of taking risks is being able to accept and move past failure.
Millionaires buying stocks and dodging the fear of failure keep company with like-minded friends and associates.
#14: Spend time with millionaires
Those people we spend the most time with eventually rub off on us. So, if you want to be a millionaire, find one or a few and make that your cohort. Watch and emulate what they do.
#15: Pay attention to your well-being
Pay attention to your overall health, physical, mental and emotional. You need to think and perform at your best to stay on top of your game and other habits.
#16: Love the process
You have to love the process or find a way to do so. You have to love trading stocks under 5, or business building, or whatever path you trust will lead to financial success; that love and passion will maintain your motivation during rough times.
#17: Stop making excuses
Don’t make excuses, find solutions. Look at obstacles and problems through the OOPS lens: Opportunities, Options, Possibilities and Solutions.