Secrets That Helped The Rich Get Rich

Reader’s Digest recently posted a article titled Secrets of Self-Made Millionaires. While I don’t think there are any “secrets” to becoming a millionaire, it’s good to be reminded of what is important, especially by those who have already made it. I really liked the following quote:

“For the rich, it’s not about getting more stuff. It’s about having the freedom to make almost any decision you want,” says T. Harv Eker, author of Secrets of the Millionaire Mind.

That is one of the descriptions that that most closely resembles my own motivation for building wealth. Here are the “secrets” from the article:

1. Set your sights on where you’re going

This means pointing yourself in the right direction and heading for your goal. You’ve got to know what you want and shouldn’t be afraid to think big. Part of the reason for starting this site was because I had a goal of achieving a net worth of one million dollars.

2. Educate yourself

Financially that is. A big hurdle to becoming wealthy is not understanding money. With all the knowledge we have at our fingertips, there’s really no barrier to how much you can learn. The more you know, the more opportunities open up to you. Again, another reason I started this site was to improve my financial understanding.

3. Passion pays off

This is an interesting one, not surprising, but interesting. I wonder how many of us are passionate about our jobs. While I’m pretty happy with the job I have, I wouldn’t say I am passionate about it. I go for the paycheck. Going after a true passion might involve my same skill set, but it would probably be in a different direction. According to research by Thomas J. Stanley, over 80 percent of millionaires say they never would have been successful if their vocation wasn’t something they cared about.

4. Grow your money

I think people are pretty familiar with this one. Spend less than you earn, and do something smart with the difference, so your money can work for you. The article suggests not just retirement accounts, but something that can grow dramatically like a business, or real estate. That’s something I am trying to do, and why I recently invested some money in a start-up.

5. No guts, no glory

This one is difficult. While taking risks is a common trait among the wealthy, but there are a lot of people who have been financially devastated by the risks they have taken. I guess you need to take calculated risks.

Bonus Secret: Stop spending.

All the millionaires they spoke to had one thing in common: they didn’t spend needlessly. According to the 2007 Annual Survey of Affluence & Wealth in America, some of the richest people “spend their money with a middle-class mind-set”. Many modern millionaires live in middle-class neighborhoods, work full-time and shop in discount stores like the rest of us. This one might be disappointing to those with dreams of getting rich and spending money recklessly.