How to become RICH?

A poor person will walk into the furniture store and buy a new couch and finance it over the next 6 years a 0% interest.

A rich person will walk in with cash and pay 10% less than the retail price of the couch because they have cash.

Don’t Watch (that much) Television

According to the Motley Fool, the average American watches just under five hours of television per day. On the other hand, millionaires typically only watch television for one hour per day.

This is only my opinion, but I believe they simply don’t have time to waste because they are too busy with providing value versus watching television.

Have Good Daily Habits

He believes if he can spend one minute each morning in silence right when he wakes up, then another minute focusing on his priorities and his unlimited potential , and the third minute on visualizing where he is now and where he will be, he will have created a daily outline for success.

In addition, Hal spends another minute each day journaling, another minute reading or learning something new, and the last minute of his daily routine doing push-ups, jumping jacks, air squats, etc.

When you first think of him doing each one of these things for only one minute, you may think it’s completely silly. However, when he creates this routine over and over again, think about how much differently his daily habits are than you or I. Hal Elrod is very wealthy, and wealthy people in general are masters are creating and sticking to good daily habits.

Drive Two Year or Older Cars

According to the book, Stop Acting Rich, the average millionaire in America drives a car valued at $31,000 and the average decamillionaire ($10 million or more) drives a car valued at only $42,000. If this is the case, then why is it when we see someone with wealth, we see them in $100,000 cars?

The answer is you’re only seeing the small fraction of wealthy people. The rest of them aren’t willing to pay a premium for a new car that drops 60% – 70% in value the first four years. They would rather invest their money in things that go up in value and let poor people buy new cars that drop on average 11% by the time you get them from the car lot to your driveway.

Also, millionaires don’t lease cars. They take the extra minute to do the math and they understand that leasing cars is the most expensive way to drive and operate a vehicle. This is also the reason why you only see the option to lease a new car in today’s car commercials.

Bargain Shoppers

Believe it or not, the extremely wealthy are also some of the greatest bargain shoppers. According to the Millionaire Next Door, they like to shop at factory outlets, they buy cheap vodka, and their favorite make and model is the Ford F-150. Although we may see television shows depicting the wealthy only buying Gucci purses, sipping grey goose, and driving Mercedes Benz, the majority of wealthy are actually focused on getting a deal.

Homeowners

97% of millionaires are also homeowners, and the average home of a millionaire is valued at $320,000 according to author Thomas Stanley. Owning a home is a great way to leverage your money, and wealthy people understand this.

A millionaire may have a $320,000 home with a mortgage of $1,500 or an annual payment of $18,000. If the housing market increases by 10% over the next year, the homeowner would now have a home valued at $352,000, or a $32,000 gain on investment.

If that same millionaire opened up a brand new mutual fund and invested $18,000 this year and received the same 10% return as the housing market, their gain on investment would be $1,800, not the $32,000 gain they saw with the gain with their home.

Financial Independence vs Financial Status

Wealthy people care more about the balance of their investment portfolio than they do about impressing strangers with their financial status. They’re focus is on gaining and maintaining true financial independence than impressing a stranger a stoplight in a brand new Porsche.

They Go to Work

Yes, believe it or not wealthy people go to work. Forget what you see on the Real Housewives of Orange County, the truth is the majority of wealthy people can be found at work 45 – 55 hours per week on average.

They are Self-Employed

Most millionaires in America are actually self-employed entrepreneurs. Interestingly enough, entrepreneurs only make up 20% of the workforce, however 67% of millionaires are actually entrepreneurs, or they work for themselves.