It’s no secret that millionaires have different habits, qualities, and ways of thinking than the average person. Those habits are most prevalent when it comes to the ways that they manage their money. They have a unique way of thinking that actually helps them earn even more money by making wise financial decisions like the following 15 ways that they manage their money:
1. They’re not impulsive.
How many times have you made an impulse decision while at the grocery store? Or how about when you are on Amazon? It’s common for most of people to make a few impulsive decisions when making purchases. Millionaires, however, have the ability to delay gratification and hold back on making impulsive decisions.
There was a famous study conducted by Dr. Walter Mischel at Stanford in the 1960s that backs up this claim. Dr. Mischel gave preschoolers the choice of eating one marshmallow whenever they wanted. The other option was to wait until the adult came back into the room. If they could stand to wait until the adult came back into the room, they would received two marshmallows. Dr. Mischel has continued to follow his subjects through the years, and he discovered that those children who could wait for the marshmallows in order to receive two marshmallows instead of only receiving one, “have a lower BMI, lower rates of addiction, a lower divorce rate and higher SAT scores.”
2. Know the difference between wants and needs.
Millionaires also know the difference between wants and needs. We all have moments when we would like a new house, pair of shoes, car, or office. But, are they necessary? Or, do you just want that new luxury car? Sure that car is powerful and would great in your driveway. But, it’s not a necessity. Instead of spending money on things that aren’t practical, millionaires put that money towards essential items that will continue to increase their wealth.
Maybe that’s why 61% of people who earn more than $250,000 per year purchase the same vehicles that we do.
3. Focus on the long term.
As Timothy Sykes, the Penny Stock Millionaire, says in Entrepreneur,
