We all dream of financial freedom. To obtain the type of financial freedom you’ve been dreaming your whole life, you need to learn to develop a millionaire mindset. According to the book, The Millionaire Next Door by Thomas Stanley and William Danko, may wealthy people and self-made millionaires reside in average neighborhoods, do not wear highly-priced clothes and watches, drive used cars, and are really careful in terms of handling their money. Additionally, few of them buy second homes, personal airplanes, recreational vehicles, and also take luxurious vacations.
True wealthy people who have a millionaire mindset have two rules when it comes to money. The rule number one is, “Don’t ever lose money”; the second and most essential rule to remember is “If you feel tempted, go back to rule number one”.
Compared to individuals who stay poor, genuine rich people spend much of their time thinking about their finances. The average adult usually spares 2 to 3 hours each month thinking their money mostly during bill paying time. But in the case of self-made millionaires, each of them spends 20 to 30 hours every month analyzing and planning his or her finances. This mindset which is focusing on your money will drastically improve with regard to the decisions you make. Rich people who spend more time planning their finances make better decisions and obtain results and ultimately achieving financial freedom.
When it comes to your mounting bank account and your goal of achieving financial freedom, millionaires also create a series of other financial habits to make sure that they don’t lose every cent and that their money will grow over time. One of the best habits that you can develop is the habit of acquiring good financial advice before you think about what to do with your mounting bank account. Ask a financial advisor who has already obtained financial freedom by investing his money in the areas that he recommends to you. Choosing a financial advisor is very essential in making good decisions with regard to investment.
Great fortunes are not built quickly; they are built slowly and steadily. A lot of people fail to achieve financial freedom because they have an abundance mindset. Great fortunes are based upon the principle of compound interest. In cases where people get rich, it is over a longer period of time. Every dollar that you set aside and properly protected and invested of course can increase to 5 to 10 percent annually. As your money mounts, it compounds on itself and definitely would increase even more. It takes about 22 years for an average millionaire to get a million dollars from the period that he starts getting serious about his financial life. A lot of rich people didn’t acquire their millions quickly. Instead, they get rich slowly. How? They develop the habit of increasing their ability to earn; save more; spend less; invest wisely and carefully.