10 Essential Tips to Becoming a Millionaire

Have you ever wondered what the difference is between the average millionaire and the average person?

Have you ever had a desire to create wealth yourself, but found it incredibly hard, and then watched others seem to do it with no apparent effort?  Do you think that it is just luck?  Coincidence?  Or do you think there are some essential common traits of millionaires that the average person can learn and apply to create wealth themselves?

As a child I had the opportunity to experience growing up with my mom living on welfare, food stamps, section 8 housing, etc.  At one point I decided that working a traditional job was not going to create enough wealth to support myself, my mom, and my future family, so I started my journey towards becoming an entrepreneur.

Over the past 10 years I have had the privilege of becoming friends with several multi-millionaires, and I have studied them passionately to learn as much as I could.  I started applying some of these millionaire success traits to my own life and amazingly I started seeing similar results and now I have a passion to share what I have learned with the world.

Today I want to highlight 10 key factors in becoming a millionaire to help guide you down that path.  Before you read these I want you to understand a few things.  First of all, money is not going to be the solution to all of your problems.  However I also believe that it can be the solution to many of them.  Regardless of your perspective on money, I want to assure you that it is the journey towards becoming a millionaire that will be more rewarding than the achievement of it.  I have been taught this first hand from several of my millionaire friends, so enjoy these tips and do your best to start applying them to your own life as soon as you can :)

1. Focus on the Why before you learn the How.

So many people underestimate the power of a worthwhile dream.  It is almost as if it has become “un-cool” to dream these days and that it is all about “goal setting” and “being realistic”.

When I hang around my millionaire friends they are always telling me stories about how they were just getting started and they didn’t know how they were going to succeed but that they had a BIG DREAM that they wanted to so badly they were going to do anything to achieve it!

The first tip (and most important in my opinion) towards becoming a millionaire is to develop a big dream that motivates the heck out of you.  There is no doubt that there will be obstacles and struggles along your journey, and it’s the power of the dream that will get you through them.  I also recommend writing down your dream and being as clear as possible.  Studies show that if you write down your dreams and goals that you are much more likely to achieve them.

Another key step is to create a “Positive Affirmation” about your dream.  Consider writing it from the perspective that you have already achieved the items from your dream list.  Here is an example of how to write a positive affirmation:

“The year is 2012 and I am sitting in my 10,000 sq foot Mediterranean style home on the beach in Southern California.  I am excited that I am in the best shape of my life at just 10% body fat and I am fortunate to have such loyal and amazing friends that I get to spend everyday with.  I love being a full time dad/mom and having the opportunity to be so influential in my children’s lives, and my wife/husband is the most beautiful person in the world that I love more and more with every day that passes.  My business is now fully automated and is creating me a solid 7-figure income and I love being able to tithe 10% of that income to my local church to help pay it forward and provide great value for so many families that deserve it…”

Carry your positive affirmation with you every day and read it as often as you can.  Memorize it and when you say it out loud you should work on visualizing it clearly in you minds eye.  One day it will come true…

2. Drive the Right Vehicle.

The definition of the word “vehicle” is; “a conveyance that transports people or objects“.  What you choose to do for a living is a “vehicle” to take you where you want to go financially.  Does your current financial vehicle have the ability to create over a million dollars per year for you?  Most jobs have “ceilings” that limit your earning potential and potential to create wealth.

So the second step in becoming a millionaire is to find the right financial vehicle to take you there.  It might start out as a small home-based business on the side of a full time job, but with enough focused effort, that can one day eventually create enough income to replace your full time job and then you will truly have a vehicle that can create millions of dollars per year for you.

Another common mistake many people make is stopping on a step on the ladder of success instead of continuing to climb to the top.

For example, my good friend found a company 8 years ago to work with to use as his financial vehicle to create wealth.  Since then he has had opportunity after opportunity cross his path to advance up the ladder and he has turned them all down to continue with his current company.

I understand his thought process of staying focused and not getting distracted with other opportunities, but at the same time when I looked at many of my millionaire friends I found that they would use one financial vehicle to get them up another step on the ladder, and then another financial vehicle to get them higher, until eventually finding the ultimate vehicle to take them to the top.

I have always believed in staying focused, while having an open mind to new opportunities that cross my path, but gaining the wisdom to discern whether or not these opportunities are worthy of pursuing.  The key is to find a financial vehicle to get started with, and then take massive action towards climbing the ladder of success!

3. Develop a Passion for Personal Development.

It’s no coincidence that this step was a common trait in ALL of my millionaire friends.  When I visit their houses I am not surprised to see large libraries of personal development books, auto-biographies, motivational movies, pictures with famous speakers and authors and more.

I recently went on a trip to Bora Bora with several friends, and one of them had a net worth of several hundred million dollars and every day he would find down time to get some sun and read his latest personal development book.  In fact, almost every time I see him he has a new book that he is carrying in his arm.  Is it a coincidence that multi-millionaires spend so much time developing themselves personally?

I learned a long time ago to turn my car into a “university on wheels“.  Rather than listening to talk radio, or playing music and commercials, I started popping in training cd’s to teach me a wide variety of subjects.  If you are serious about creating wealth in the next few years, then I strongly recommend turning off the radio and turning off the television and replacing those habits with reading books and listening to audios to teach you new skills that you don’t already know.

I have heard that the average person reads one book per year, but that the average millionaire reads one book per month.  I think that is an underestimate because the average millionaire that I personally know seems to read about one book per week!  Remember, it is the journey of “becoming” a millionaire that you will gain the most from, so start that journey today by making a commitment to spend more time every day personally developing yourself.

4. Find a Mentor to Guide You.

One of my favorite quotes is from Mike Murdock who said; “Wisdom comes from two places, mistakes and mentors“.  I think we can all agree with this one.  The “school of hard knocks” has a pretty steep tuition and most of us have probably already paid it.  The problem is that many of us still haven’t graduated!

My fourth tip today is vital because there are so many people out there that are stuck on the ladder to success and can’t figure out what the problem is.  Think of a mentor as someone who is further up the ladder than you are.  They can offer insight and perspective that you are unable to see from the step that you are on.  They can assist you in overcoming obstacles that they too had to overcome to get where they are.

Finding a mentor can be a difficult process, but well worth the effort.  My suggestion is to make a list of potential mentors that really stand out to you as the type of people that you can learn a lot from and that are where you want to be, or at least further down that road.  Then your goal is to figure out how to acquire their time and mentorship.  Here are a few ideas:

First of all you could offer to pay them.  There are plenty of people out there that would gladly consider setting time aside as long as they were being compensated.  They might already have a price in mind, or you could offer what you think would be worth it.  Your next option could be to offer to serve them and their business for free, similar to an “intern”.  I chose to do this at one point in my life and I worked for free for a mega millionaire and as a result doors started opening up for me left and right.  It was well worth my time and effort in the long run.

Heck, you might just be more direct and tell them “I would love the opportunity for you to mentor me and I am willing to offer whatever I can in return to compensate your time, just let me know how”.  Successful people are usually very busy, but they also tend to have a “pay it forward” attitude so you never know when you might just get what you ask for ;)

5. Find Multiple Ways to Make Money Doing What You Are Already Doing.

This is one of my all time favorite tips.  It just made perfect sense to me right off the bat.  You see, we all have the same 24 hours in a day but successful people have found ways to leverage that time to create more hours every day!  It seems to be a secret for the wealthy in our country that is so obvious, yet very few people actually do it.

For example, in step #3 I mentioned listening to personal development cd’s in your car.  This is a perfect example because many people are already commuting back and forth to work every day and they usually hate it.  That time can be spent gaining wisdom in the field of wealth creation and studying powerful topics like entrepreneurship, investing, raising capital, creating joint ventures, maintaining a positive attitude and so much more.

The average book on tape I listen to is around 5-6 hours long.  If someone commutes around an hour per day then they can literally listen to a new book every single week! Imagine how quickly that person can gain new skills and a new thought process to help eliminate their job and replace it with a new financial vehicle to create them wealth and help them become a millionaire.

Recently I had a conversation with a real estate investor friend of mine who has bought and sold over 100 properties.  I shared this principle with him and we came up with a great game plan to help him double or triple his current income without putting in much additional effort.  You see, he is already out looking at properties, dealing with related professionals, going to auctions and buying properties, etc.  I suggested that he have his assistant video record as much of this process as possible as if it were a reality television show and post the videos to YouTube.

Without doing much extra work he would have enough content to create at least one new 5 minute video each day.  Those short highlight videos could encourage viewers to visit his website where they can watch the full extended versions of his videos for a small subscription fee.  Over time he would build up a residual income and a database of fans that he can continue to market to and provide value for.  This is just one example of many ways to create more income doing what you are already doing.

The movie theater model is another great example of this concept.  They make money when they sell you tickets to watch movies, but the real money comes when you are in the theater ordering popcorn, sodas and candy.  Then you sit for 15 minutes before the movie watching advertisements and previews.  They have figured out multiple profit centers doing what they were already doing.

What are some ideas that you have to create extra revenue doing what you are already doing?

Next time you go golfing can you also review the course at the same time?  What if you took a picture of the clubhouse outside and inside, and then a view of each hole from the tee box with the phone from your camera.

How much extra time would that take?  5 minutes total?  Then you can simply upload the pictures and write a 3 minute review of the course on your free blog.  Not only does this start to have the potential benefits of a tax deduction because you are there for business, but you can also make money with Google Adsense on your blog and golf related affiliate programs and offers as well.

There are hundreds of ideas and I just wanted to get your mind spinning, but this is an essential step that I see my millionaire friends focusing on and I thought it was definitely worth sharing with all of you.  Remember, the key is not to spend all day “multi-tasking” but rather to find more ways to leverage, delegate, and outsource to create more income doing what you are already doing!

6. Never Say “I Can’t”, Instead Learn to Say “How Can I”.

Often times we know exactly what we need to do to become successful but for various reasons our minds tell us that it can’t be done because of our limited resources.  For example, let’s say that you have found the financial vehicle that you know will get you the result you want but there is an initial investment to get started.  You take a look at your current situation and you convince yourself that you can’t do it because you don’t have the money.

I am not going to try to convince you right now that you really do have the money, but I am going to encourage you to say “how can I get the money” instead of jumping to the conclusion that you can’t.  The way that our subconscious mind works is that whatever you declare to be true about your situation, your mind will start looking for ways to validate that belief.  So if you state that “you can’t” then your mind will work hard to prove that you really can’t. 

But if you open you mind up and say “how can I” then your subconscious mind will go to bat for you, 24 hours per day, looking for ways to make it work.

Several years ago I came across the opportunity to start up a business but it was going to take around $20,000 to get it up and running.  In my account at the time I was actually negative by $200!  I had already tapped friends and family and my credit was completely shot.  Despite all of these circumstances, I prayed about it and had an open mind and asked “how can I” and within 2 weeks I was able to find the money to get started!

Was it a miracle?  Perhaps, but at the same time I truly believe that it was because I had never really opened my mind to the idea that it was possible to raise that much money that fast.  Since then I have gone on to raise hundreds of thousands of dollars, sometimes within just a few days, and I look back and think of how silly it was for me to think that $20k was that difficult.

That my friends is the power of your belief and the words that you choose will have a powerful impact on your actions and results.

7. Don’t Focus on How Much Something Will Cost You, Rather How Much It Will Make You.

Back in 2001 I had the chance to spend a few hours with a mega millionaire at his house in San Diego, California.  He told me some stories and gave me new perspectives on how he thinks about money.

He said; “Chris, I never look at how much something costs, but rather how much it will make me“.  He gave me my first real life lesson in ROI and how to think like a millionaire.

For example early in his business when he was still broke there were opportunities to invest in training and seminars to help him become more successful.  He would often spend money that he didn’t really have to attend these workshops but he would take the information learned and apply it to his business to increase his overall revenues.  He would make the same types of investments into advertising and marketing with dollars that he really didn’t have, and the result was the same.

A few years ago I sat down with a close friend and shared a joint venture marketing campaign that would require just $1,000 from each of us to get started.  His response was “Chris, I don’t want to put out any money up front, I just want to make money first and then I will consider reinvesting it”.  He was simply looking at the cost rather than factoring the ROI.  I ended up choosing another partner and together we flipped $2,000 into well over $20,000 inside of just a couple of months.  What’s funny is that I didn’t have the money at the time but I was looking at the ROI and it felt like a no-brainer to me so I knew I had to make it happen.

This is a small scale example of why we should always look at ROI first rather than the perspective of how much something costs.  Millionaires focus on how much they are going to make…

8. Learn to Work Smart Instead of Just Working Hard.

Have you heard of the acronym for the word S.Y.S.T.E.M?  It stands for Save, Yourself, Stress, Time, Energy & Money.  There is a huge difference between working hard and working smart.  If wealth creation were just a matter of working hard, then construction workers would be some of the wealthiest people in the world!

The best example of this principle that I can share with you is the “Parable of the Pipeline“.  In this story there are two men contracted to bring water from a spring into the local town.  They both carry buckets back and forth each day in exchange for money.  But one of them works nights and weekends to build a pipeline and after a few years it is complete and then he begins to enjoy passive income even while he sleeps.

The video below is a cartoon version of this parable and well worth watching when you have time.  It will give you a clear visual image of the difference between working hard and working smart.

Some people get this tip confused and stop working hard as soon as they learn it.  That is definitely the wrong message!  The key here is to continue working hard, but look for ways to become more efficient by working smart.  For example, let’s say that you are in an industry that requires generating leads to buy your products and services.  There are hundreds of lead generation strategies to do this, but the key is to create some sort of automated process that generates leads for your even while you sleep.

Google Pay Per Click is a great example of this.  After a little experimentation, you can define exactly what your conversion rates are and how much money you can spend per click in order to turn a profit.  Your viewers can be directed to a landing page where they can learn about your products and services and have the opportunity to purchase them on the spot.  Then you can use an email marketing service with a series of follow up emails to promote the rest of your product offerings and to provide value for your customers.  All automated!

It takes education, time, experimentation, mentorship and more to make this happen, but once it’s figured out you can have a business on auto pilot that is scalable.  If you figure out how to leverage $1,000/mo to earn $2,000/mo then you can scale it up to $10,000/mo to earn $20,000/mo.

Imagine if you could scale it up to $100,000/mo to earn $200,000/mo or beyond!

If you are the pipeline builder as shown in the video above, then you could literally take that idea from town to town and contract others to set up the entire pipeline for you and enjoy a lifetime of residual income for you and your family.  A common characteristic between millionaires is that they create systems to automate their businesses to make money when they are not even there…

9. If You Are Not Part of the Solution, You Are Part of the Problem.

Most millionaires that I know are very passionate about helping to create a positive change in our world.  There is a clear problem out there, especially here in the United States with our current economy, and if you are not part of the solution, then you are part of the problem.

This tip is about developing a greater purpose for why it is that you do what you do.  You dream will be the inspiration for you to do the work necessary to achieve success, but a worthwhile cause will be the factor that will give you a greater sense of purpose in everything that you do.  There are so many ways for us to get involved and take action these days that there is no excuse for us not to.

I have noticed that millionaires find a way to incorporate the causes that they support into their business and make them part of their brand.  Consider what you can do to help raise money for charities, or what types of events that your business can sponsor.  Consider getting involved with politics or working towards a grass roots movement to educate the public on key issues that are important to you.

Consider “going green” with your business and looking at ways to become part of the solution rather than being part of the problem.  Not only will get the respect of many, but your followers will become extremely loyal because you and your business stand for something that they believe in.

There is a quote that I really enjoy from Albert Einstein that says; “Only one who devotes himself to a cause with his whole strength and soul can be a true master. For this reason mastery demands all of a person.” There is something to be said about the power of a cause that you believe in.

Ask yourself this question; “Are you part of the solution or part of the problem?”

10. What Are You Willing to Sacrifice in Order to Live Your Dreams.

Did you know that 90% of 65 year olds end up either dependent on friends, family and the government, or still working just to get by?  Only 1% of Americans ever make enough money to be considered wealthy in our country.  The message that I get from these statistics is to do the opposite of what 99% of people do, and starting looking for the clues that the 1% wealthy leave for us.

A common characteristic is that they discipline their time well and they are willing to make short term sacrifices to enjoy long term wealth and happiness.  In order to create wealth we need to start looking at what things we are all willing to temporarily give up, in order to have them in abundance later.

Did you know that the average American is now watching more than 151 hours of television every single month.  The average child watches more than 8,000 murders on television before they finish elementary school!  The average American adult sleeps 7-8 hours per day on average, and when you add up sleeping, eating, and watching television most people are giving up well over half of their day on just those activities!  Throw in a normal 8 hour job and commute and the whole day is gone!

Millionaires are not afraid to make sacrifices on things that would seem hard for the average person.

Back in 1999 I sold my television and I haven’t bought another one since!  If I feel the need to watch something, I will either watch it on the internet or rent a movie from the store so that I can control the content that is being presented to me and do it on my time.  Not having a TV has improved the quality of my life tremendously.  For many of you this might be a hard step but you could at least start by simply cutting off the cable.

One of my millionaire friends said that he created a collage of pictures of his dreams and taped that collage to the front of his TV.  His reasoning was that in order to watch television he would have to physically peel away his dream to do it!  That is what you call accountability.

What sacrifices are you willing to make in order to create the lifestyle that you deserve? What are you willing to temporarily give up?  Are you willing to sleep just 6 hours per day?  Are you willing to shut off your TV?  Are you willing to stop listening to the radio in your car when you drive?  Are you willing to give up a season or two of sports temporarily?

How badly do you want to achieve your dreams and goals?

The key is to create as much free time as you possibly can and dedicate that time towards achieving the optimal balance that you desire in your life.  Once you can get things balanced, you can start to add more TV time and radio time, etc.  That is, if you still want it :)

I believe that “True Success is the Optimal Balance of Faith, Family, Friends, Fitness and Finances”.  Today we talked about 10 tips to creating more wealth in your life.  These same 10 tips also apply to the other categories of your life as well.  I hope that this article has made an impression on you and that you have learned something new to help you become more successful.  Most of all, I hope that you Take Massive Action on these tips to make it happen!

Please leave your comments below for any additional tips that you would like to add, or any feedback that you can offer on any of the tips above.  Thanks!

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