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By Paul B. Farrell, MarketWatch
Last Update: 6:44 PM ET March 20, 2005
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ARROYO GRANDE, Calif. (MarketWatch) -- A new study by DataMonitor says the number of American millionaires rose from 7.3 million in 2002 to 8.5 million in 2004. At the current 7.1 percent annual growth rate, we're creating a million new millionaires every year, a total of 12 million millionaires by 2008.
You can join those folks. Here's the secret: It's all in your head, your attitude, your state of mind. If you want to retire a millionaire, you can. You control your mind. A few decades in business convinced me of this one simple truth: Becoming a millionaire is all in your head. It has little to do with wealth-building techniques, tools and rules.
In fact, you could even forget all the usual stuff: asset allocation, stock picking, savings plans, budgeting and so on. I know that's what advisers, pundits, brokers and other experts tell you to focus on. But if you're not in the right state of mind, none of that matters.
Seriously, I've read all the books: "The Millionaire Mind," "Instant Millionaire," "Automatic Millionaire," "Millionaire Next Door," "One Minute Millionaire" and many more. I even wrote one, "The Millionaire Code."
But I keep coming back to this one simple fact: It really is all in your head! Period. Here are 10 tips I picked up over the decades, tips that'll help you become one of America's next millionaires:
1. Getting rich isn't about money
Peter Lynch says if you spend 15 minutes a year studying the economy, that's 10 minutes too many. And when money guru Ric Edelman researched 5,000 millionaires for "Ordinary People, Extraordinary Wealth," he discovered that millionaires spend an average of just six minutes a day on personal finance. They have better things to do. Get a life!
2. Accentuate the positive
Most of us have read books like "Success Through a Positive Mental Attitude." That message was summarized for me by a U.S. Army Special Forces instructor, a veteran of 26 years: "If you have a guy with all the survival training in the world who has a negative attitude and a guy who doesn't have a clue but has a positive attitude, I guarantee you that the guy with a positive attitude is coming out of the woods alive. Simple as that."
3. Think differently
Go inside "The Millionaire Mind" with author George Stanley: "They think differently from the crowd ... It pays to be different." Yes, being different helps build wealth. That's the central theme of his work: Don't fit in, go your own way.
4. Quit doing what you hate
Many people live in quiet desperation, waiting for retirement, doing something they hate. Marcus Buckingham put it very simply in his new book, "The One Thing You Need to Know:" Figure out what you don't like doing then stop doing it.
5. Do what you love
You've heard all the pep talks: Follow your bliss; do what you love, money will follow. Never forget Stanley's bottom line: "If you are creative enough to select the ideal vocation, you can win, win big-time. The really brilliant millionaires are those who selected a vocation that they love."
6. Find 'the real you!'
Working in a career that doesn't fit right is exhausting and stressful. You're less efficient, less productive. Get in sync with the real you. Get help from a career counselor. Read books on personality types. In "The Millionaire Code" I identify 16 basic types to help people focus on their dreams. Buckingham's "Now Discover Your Strengths" is another example. Find the real you, go for it and never turn back!
7. Invest in 'You, Inc.'
Tired of working for Corporate America? Become an entrepreneur. Create your own business. Read Kiyosaki's "Rich Dad" series. Browse through "EBay for Dummies." Open a Starbucks franchise. Most millionaires work for themselves, pay less in tax, live below their means and build equity in themselves.
8. Live with passion
Believe in something. Listen to the still small voice. What is it: Love, family, jazz, art, golf, writing, fishing, inventing? Whatever it is, it's you. And it's priceless. My mentor Joseph Campbell said: "If you follow your bliss, you will always have your bliss, money or not. If you follow money, you may lose it, and you will have nothing."
9. Live in the moment
A good friend is in his 60s. When I mention retirement planning, he laughs. He talks about his next vacation. His new jet skis. He's survived divorce, bankruptcy, foreclosure, health problems. He has a successful business, nice house, lots of debt. He's at risk. I couldn't do it, but he's happy. We all have friends like him, living in their moment. You need to live in yours.
10. Make a difference!
Most of us focus on our little world and our future. Millionaires dream of making the world a better place, with visions of a better tomorrow for everyone. They love helping people. I'll bet you have such a dream. Discover the real meaning of life by going beyond yourself and make a difference!
Remember, being a millionaire is all in your head. If you got the right attitude, if you feel it, if you believe you're a millionaire, you're already there. The money will follow. Trust me.
Last Update: 6:44 PM ET March 20, 2005
E-mail it | Print | Discuss | Alert | Reprint | RSS
ARROYO GRANDE, Calif. (MarketWatch) -- A new study by DataMonitor says the number of American millionaires rose from 7.3 million in 2002 to 8.5 million in 2004. At the current 7.1 percent annual growth rate, we're creating a million new millionaires every year, a total of 12 million millionaires by 2008.
You can join those folks. Here's the secret: It's all in your head, your attitude, your state of mind. If you want to retire a millionaire, you can. You control your mind. A few decades in business convinced me of this one simple truth: Becoming a millionaire is all in your head. It has little to do with wealth-building techniques, tools and rules.
In fact, you could even forget all the usual stuff: asset allocation, stock picking, savings plans, budgeting and so on. I know that's what advisers, pundits, brokers and other experts tell you to focus on. But if you're not in the right state of mind, none of that matters.
Seriously, I've read all the books: "The Millionaire Mind," "Instant Millionaire," "Automatic Millionaire," "Millionaire Next Door," "One Minute Millionaire" and many more. I even wrote one, "The Millionaire Code."
But I keep coming back to this one simple fact: It really is all in your head! Period. Here are 10 tips I picked up over the decades, tips that'll help you become one of America's next millionaires:
1. Getting rich isn't about money
Peter Lynch says if you spend 15 minutes a year studying the economy, that's 10 minutes too many. And when money guru Ric Edelman researched 5,000 millionaires for "Ordinary People, Extraordinary Wealth," he discovered that millionaires spend an average of just six minutes a day on personal finance. They have better things to do. Get a life!
2. Accentuate the positive
Most of us have read books like "Success Through a Positive Mental Attitude." That message was summarized for me by a U.S. Army Special Forces instructor, a veteran of 26 years: "If you have a guy with all the survival training in the world who has a negative attitude and a guy who doesn't have a clue but has a positive attitude, I guarantee you that the guy with a positive attitude is coming out of the woods alive. Simple as that."
3. Think differently
Go inside "The Millionaire Mind" with author George Stanley: "They think differently from the crowd ... It pays to be different." Yes, being different helps build wealth. That's the central theme of his work: Don't fit in, go your own way.
4. Quit doing what you hate
Many people live in quiet desperation, waiting for retirement, doing something they hate. Marcus Buckingham put it very simply in his new book, "The One Thing You Need to Know:" Figure out what you don't like doing then stop doing it.
5. Do what you love
You've heard all the pep talks: Follow your bliss; do what you love, money will follow. Never forget Stanley's bottom line: "If you are creative enough to select the ideal vocation, you can win, win big-time. The really brilliant millionaires are those who selected a vocation that they love."
6. Find 'the real you!'
Working in a career that doesn't fit right is exhausting and stressful. You're less efficient, less productive. Get in sync with the real you. Get help from a career counselor. Read books on personality types. In "The Millionaire Code" I identify 16 basic types to help people focus on their dreams. Buckingham's "Now Discover Your Strengths" is another example. Find the real you, go for it and never turn back!
7. Invest in 'You, Inc.'
Tired of working for Corporate America? Become an entrepreneur. Create your own business. Read Kiyosaki's "Rich Dad" series. Browse through "EBay for Dummies." Open a Starbucks franchise. Most millionaires work for themselves, pay less in tax, live below their means and build equity in themselves.
8. Live with passion
Believe in something. Listen to the still small voice. What is it: Love, family, jazz, art, golf, writing, fishing, inventing? Whatever it is, it's you. And it's priceless. My mentor Joseph Campbell said: "If you follow your bliss, you will always have your bliss, money or not. If you follow money, you may lose it, and you will have nothing."
9. Live in the moment
A good friend is in his 60s. When I mention retirement planning, he laughs. He talks about his next vacation. His new jet skis. He's survived divorce, bankruptcy, foreclosure, health problems. He has a successful business, nice house, lots of debt. He's at risk. I couldn't do it, but he's happy. We all have friends like him, living in their moment. You need to live in yours.
10. Make a difference!
Most of us focus on our little world and our future. Millionaires dream of making the world a better place, with visions of a better tomorrow for everyone. They love helping people. I'll bet you have such a dream. Discover the real meaning of life by going beyond yourself and make a difference!
Remember, being a millionaire is all in your head. If you got the right attitude, if you feel it, if you believe you're a millionaire, you're already there. The money will follow. Trust me.