Wouldn’t we Aussies love to know?
We’ve read the books, we’ve read the articles, we’ve even watched the documentaries, yip Steve Jobs was a massive inspiration but we all know it's not that simple and that none of us can replicate what he did that easily.
It’s as though we’re all just waiting for this “manual for life” to show us how to make the millions and get on with life already! The truth is, there’s no magic trick or secret weapon, we checked for genie’s granting wishes and came up empty-handed there too. Having searched high and low and trying to understand the Jedi movements of these youthful millionaires that seem to always get it right, we still feel lost in the process.
Patience is key to financial success
Perhaps it’s because as with anything in life, we are after instant gratification. Whether it be our diets, our relationships, our careers, ergo our money. We can’t seem to grasp the simple notion that worthy things take time.
Your passion & purpose will bring wealth
The other component that we fail to realise is that these under 40 millionaires typically weren’t after the money in the first place. Doesn’t quite make sense, does it? The middle-class walk around hoping to stumble upon their lucky break to make all the money they need to live the dreams they envision for themselves, all the while the rich just walk around enjoying whatever it is that actually made the money come about in the first place - their passion and purpose. The riches were just a bonus!
Anyway, enough garble over how we keep getting it wrong and let’s see if there is potentially a way in which we can change our mindset and adopt the habits of millionaires and with a bit of luck, maybe some of you reading this article will end up laughing in the face of a magic wand.
Habit #1 – Investing money responsibly
It might sound like a catch 22, because how do you pour your hard-earned money into an investment that no one can truly forecast will behave in the way you need it to? The truth is, that most financial advisors can solve this problem. While you might not have a clue as to what to invest in, seasoned investors know exactly what they’re doing.
You might think you’re doing yourself a favour by jumping on the digital currency bandwagon, when in fact you have no idea what the trends are for bitcoin in the future. To invest your money in that, would (at this stage) be considered high risk and most likely not too responsible if you’re an amateur.
It’s also very responsible to invest in not just one, but a few stocks and shares. Having all your eggs in one basket is a mess of scrambled eggs waiting to happen when you actually just wanted 5 separate and perfectly poached eggs.
Goodwill investing is popular amongst Millennials in Australia and it’s proving to be a key facet of increasing net worth.
Habit #2 – Spending with cash instead of a card
Sounds like an odd way to generate wealth? But if you have ever considered the mental impact on your spending when you part with real cash over the feeling you have when you hand over a piece of plastic, the difference is uncanny. Studies show that those who spend with cash (Millennials primarily) are spending less than those who spend with debit or credit cards.
The reason for this is that you actually physically witness cash leaving your hands in exchange for goods, with a card, it’s as though you aren’t parting with your money at all. The spending is thus more frivolous and ends up being a lot more than your Aussie mate next to you that just pulled out a few notes to do the same. The difference is, he was completely conscious of the amount he was spending. You, on the other hand, probably haven’t even checked your slip yet to see how much yours was.
Managing your money like a young millionaire simply means being aware of all your transactions and also having a safety net in the form of an emergency fund in the bank that’s untouched for when you need it.
Habit #3 – Investing in real estate
We’ve heard it all before, however, how am I supposed to invest in real estate when I can’t afford it? But it doesn’t mean that just because you’re choosing to invest, that you have to go broke buying a house in the Hamptons. We simply mean start somewhere. You could purchase a property that is within your budget and rent it out. Another option is to purchase a property, fix it up and resell it for a profit. You can also partner up and put whatever savings you have towards purchasing a property. This makes it much easier to get into real estate without already have significant amounts of cash to start.
Habit#4 – Turning to the web for wealth advice
Millennials are turning to the internet and friends and family to get assistance with investing, which is very new age compared to the old school mentality of trusting human professionals.
It just goes to show that there really are newer and more innovative ways of going about managing your money and becoming rich, from the things we do to the sources we trust! Traditions are in the rear-view and statistics and technology are now at the forefront of all new wealth generation. When we look for ways to make money, spend money and save money, we now look online for tried and tested solutions and advice. It's never been easier to access information that will help you reach your financial goals.