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6 Important Skills of Self-Made Millionaires

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6 Important Skills of Self-Made Millionaires

There are ambitious individuals all over the world working hard to achieve millionaire status. It is a status that most would agree epitomizes financial success. We’ve all heard countless success stories of people who have become millionaires, some even at a young age. We also know that many of these people started with nothing, which is likely where the term “self-made” comes from.

There are many paths a person can take to become a millionaire. Some have become millionaires by investing in real estate. Some have done it by building and selling a business. Some have done it by investing in other businesses. Some have done it by creating and selling digital products such as software, mobile apps or information products.

So we know that it’s possible, and we know that there are many ways that people have done it. But what we don’t often hear about are the specific skills that these self-made millionaires possess that are paramount to their ability to create substantial financial wealth, regardless of which path they take to create it.

After interviewing dozens of self-made millionaires, here are 6 specific skills that I’ve found to be common in all of them: 

 

1. They know how to manage money

Self-made millionaires know how to manage money. They know how to use the money they make to make more money. They multiply their wealth by getting their money to work for them. Most people don’t know how to make money work for them, so they never stop working for money. Most people spend the majority of their income on personal expenses and whatever is left will typically sit in a low-interest savings account.

While most self-made millionaires began by working for money, they kept personal expenses low and put their remaining income to work. They didn’t let their money sit in any one place for very long. They put it work by using it to grow their business or purchase investments that would yield a return. By minimizing personal expenses consistently for several years while continuing to re-invest as much money as possible into income-generating activities, these individuals were able to compound their wealth in relatively short periods of time.

 

2. They know how to create win-win relationships

Self-made millionaires know how to build and cultivate win-win relationships. Believing that their network is equal to their net worth, they make a commitment to cultivating relationships with people who can help them achieve their goals, and in exchange they help those individuals achieve their goals. By continuously expanding their network, they can create opportunities by connecting the right people together. And as their network expands, the number and quality of the opportunities they are presented with also increases.

 

Jim-Rohn
 

3. They can delay gratification

Self-made millionaires have the discipline to delay gratification. Most people are very impulsive and entertainment driven. They often spend money on unnecessary things that give them immediate pleasure but have no real long term benefits. Most self-made millionaires had little interest in short term pleasures as they built their wealth. They had the discipline to not waste money on unnecessary items or waste time on unnecessary activities. They made plenty of sacrifices that the average person doesn’t make, and as a result they are now able to enjoy life at a level that the average person can only dream of.

 

4. They know how to influence others

Self-made millionaires know how to influence and persuade others to help them do what they need to do. Even though the term “self-made” implies that no one else’s help was used, in reality we all require the help of others to achieve our goals. For example, a real estate investor will likely not build wealth in real estate without the help of real estate agents, appraisers, mortgage lenders, contractors, or tenants. A large goal often requires the involvement of several people. Self-made millionaires know this, and have therefore become skillful communicators. They are able to effectively persuade others to willingly contribute whatever services they can.

 

5. They are resourceful

Self-made millionaires seldom let a lack of resources stop them from achieving their goals. If they didn’t possess the resources they needed to seize an opportunity, they found someone who did and negotiated a win-win arrangement for both parties. If they needed money, they found where to get it. If they needed certain talents, they found the right people. Self-made millionaires know that a lack of resources is rarely the problem – a lack of resourcefulness is. When resources were scarce, they learned to be very efficient with what was available to them. Being efficient with a little was practice for being efficient with a lot.

“Empty pockets never held anyone back. Only empty heads and empty hearts can do that.”Norman Vincent Peale

6. They know when to delegate

Self-made millionaires are conscious of the value of their time. They deliberately spend the majority of their time on high-value activities (activities that yield the greatest return). For example, an entrepreneur whose goal is to earn $1,000,000 in a single year and is prepared to spend 2,000 hours on work-related activities, calculates that the value of one hour of his time is $500 ($1,000,000 divided by 2,000 hours). In order to achieve that goal, that entrepreneur must spend his time on activities that are worth $500 per hour to their business. All other activities need to be delegated. You can’t expect to earn $1,000,000 in a single year if you spend the majority of your time on activities that can be delegated to someone else for $20 per hour.

Self-made millionaires identify which of their daily activities are most productive in terms of growing their wealth. They focus as much time as possible on those activities and they delegate the other activities (paperwork, administration, running errands, etc.) to other people. They abide by the Pareto Principle – also called the 80/20 Rule – which states that 80% of results come from 20% of activities. Self-made millionaires invest their time in the right activities.

I would love to hear your thoughts about my article in the comment section below!

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Can Organic Marketing on Facebook Be Effective in 2022?

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As another cat video is served to me in my Reels on Facebook, I am beginning to wonder if this platform can still serve to attract clients to my coaching business. And as the wondering turns into worrying, I feel a pressing need to make some vital changes to what worked for my solopreneur business for half a decade. (more…)

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How to Leverage Your Leadership Style for Business Success

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When we hear that leaders should operate within their zone(s) of genius, it’s easy to think that this only applies to tasks that they excel at. Whilst this is true, the piece of the puzzle that is often overlooked is the positive correlation between a leader’s zone of genius and their leadership style. (more…)

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5 Simple Habits to Live A Less Chaotic, Happier Life

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Many of us spend our daily lives searching for happiness. We jump from one job to another, from one hobby to another, hoping to spark a sense of joy and purpose.

But it’s hard pursuing happiness. After all, life is full of frustration and can put a stopper to our feel-good days.

And it’s challenging to be happy when we are juggling the responsibilities of everyday life like work and relationships. While achieving happiness is arduous, it’s not impossible. Try out these 5 habits to enjoy life more and be happier.

1. Walk in Nature

Spending time in nature has always improved my mood. Taking a walk around my neighborhood park, surrounded by trees and vegetation, I enter a peaceful state of mind.

The worries previously weighing on my mind are suddenly lifted, and I feel an indescribable sense of joy.

Taking just 20 minutes out of my day to get a fresh breath of air is extremely relaxing. 

In our work culture that favors busyness, there is little room for calmness. We associate a busy schedule with how successful we are, which isn’t entirely true at all.

In fact, it might be a disaster in the making. All that stress and anxiety bottled up without an outlet—the outcome is obvious.

So getting in touch with nature is my go-to way of maintaining a proper work-life balance. It makes me energized and ready to blast through the rest of my day with optimism.

2. Smile More Often

I make it a habit to smile every day; they aren’t fake smiles but genuine ones. And they have become a regular part of my life.

What am I smiling at, exactly? It can be the night sky covered with shining stars, like fine quicksand. Or, it can be the flowers sprouting new leaves in spring.

I embrace everything with open arms. Even when I have a rainy day, I don’t let it ruin my momentum.

Regardless of what happens, a simple smile can brighten my day; and best yet, it’s completely free.

At some point, everyone can have a stressful day and feel burned out. So put up a smile. Even if you’re not a positive person, take a firm stance against negativity. Your daily life will surely burst with joy.

“Happiness is not something ready made. It comes from your own actions.” – Dalai Lama

3. Find Your Passion

Many people dive headfirst into a day job that doesn’t interest them. They do it just for the money, which only makes them more miserable.

People who aren’t attached to their work will find difficulty achieving happiness. They live in a gray and stale world devoid of positivity.

Listen to your heart. Ask yourself: What makes me feel enthusiastic and excited? This is a time to discover your hopes and dreams.

You have endless opportunities in this world. Start a business. Volunteer at a charity drive. Figure out your reason why.

Personally, I used to turn to real estate to earn dependable rental income. But there was no sense of fulfillment. That feeling soon reached a tipping point, which pushed me to re-prioritize everything.

I wanted to make a positive impact on people’s lives. Combining my interest in business and self-improvement, I pursued my passion for blogging. And I can’t be any happier about it.

Everyone needs something that keeps their life meaningful. It can be a source of light that helps us walk in the right direction.

So having goals and dreams makes us genuinely happy. Without them, it will be a long, treacherous journey.

4. Practice Gratitude

Some days we may not feel a shred of gratitude. We are overwhelmed with the hustle and bustle of life where we seek perfection, one that is only full of success and wins.

However, that will only put you further away from happiness.

Take the time every day to pause and appreciate something in your life. What I find helpful is sitting down with a pen and paper.

I start with “I am grateful for…” It can be the appreciation for my afternoon cup of herbal tea. It can be the clear blue sky on a sunny day.

This routine sets up a support system that reinforces positive emotions. It reminds me that there are many things I’ve experienced in life and even more things that I’m grateful for.

Even if I have a bad day, I try my best to be grateful and encourage lasting joy.

So appreciate everything that enters your life—all the good and bad. You will see your mood elevate to an entirely new level.

5. Create Memories With Loved Ones

It can be tempting to focus all our time and energy on reaching valued goals. We say, “I’ll take it easy and spend time with loved ones after I’m successful.”

But what if that time never comes? What if, at some point, your loved ones are suddenly gone?

Don’t wait until it’s too late. Prioritize your loved ones today, not next year. After all, you wouldn’t want to leave any room for regret.

The cherished memories you make now will be a spark of joy. They can even be a source of motivation when shooting for goals.

As social creatures, sharing stories, feelings, and dreams can make us happy and fulfilled.

Living a solitary life is not for everyone. Although having some alone time is perfectly fine, you should still make memorable experiences with those close to you. They will be cherished within your heart for as long as you live.

The quest for lasting happiness can be daunting at times. We spend much of our time searching for it, almost giving up along the way.

But you need to see the bright side. Living a better and happier life isn’t a far-fetched dream; it’s within reach. Remember that happiness can come from the small habits and things you do daily.

If you want to lead the life you truly want, practice these 5 habits and be consistent every day. Don’t give up halfway. Once you do so, there will be nothing stopping you from enjoying life to the fullest.

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Avoid These 12 Mistakes on the Way to Success

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One day when I was writing an interesting article my wife asked me, “Why did you achieve success so late, during the late forties?  Did you ever find out the reasons for your late success?” The question was an interesting one as I seldom thought about why I achieved success so late in my life until then. I thought about this for a while; here are the reasons that come to my mind: (more…)

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