Each self-made millionaire has a unique tale of accumulating wealth. Whether through frugality, aggressive investment, or entrepreneurial success, each story typically offers advice that applies to individuals at any stage of their financial journey.
Here are financial tips from five self-made millionaires that can aid you in achieving your financial objectives:
1. Putting Yourself First
Working diligently or negotiating higher pay can lead to success, but Jasmine McCall became a self-made millionaire by prioritizing herself and becoming her boss.
The 32-year-old entrepreneur and PayBump founder earns $143,000 monthly through digital product sales and YouTube ad revenue. She believes her video success stems from being open with her audience. Previously, she made six figures as an Amazon recruiter but lacked work-life balance as a new mom. Now, her passive income exceeds her Amazon salary, and she works only 10 hours a week, prioritizing her health, family, and personal time.
2. Stop Multitasking
Money coach Bernadette Joy overcame significant financial hurdles by paying off $300,000 in debt with her partner within three years. Their success was largely due to their dedication to reducing debt. Now, she advises others to prioritize debt repayment before beginning to invest.
Recently, she expressed her opposition to the notion of paying off debt and investing simultaneously, stating that humans struggle with multitasking. Instead, she advocates focusing on one task at a time for better results. While this approach has advantages and disadvantages, Joy suggests that concentrating on one goal, especially during stressful times, can lead to greater success.
3. Trusting Yourself
Before Rachel Rodgers's Hello Seven company earned $10 million in a year, Rodgers believed she was bad with money, backed by her credit history. However, she altered her mindset, embracing the belief in her capacity to learn and evolve.
The author and entrepreneur emphasize that transforming her mindset and trusting her capacity to learn and evolve were pivotal to her success. She believes that being good with money is fundamentally about self-trust. When negative thoughts arise, she consciously reframes them, understanding that labeling oneself as bad with money hinders progress toward financial goals. Instead, she affirms her belief in making informed decisions and providing financial security for her family. Even in the face of mistakes or setbacks, she relies on her acquired knowledge to navigate challenges and rebuild.
4. Focusing on Growth
Former Wall Street trader Vivan Tu, who achieved millionaire status at 27, emphasizes the importance of investing. While many aspire to become millionaires or accumulate even greater wealth before retirement, Tu advised CNBC Make It to "invest to retire" rather than "save to retire."
The self-made millionaire also highlighted several money habits adhered to by wealthy individuals, all revolving around the idea of effectively investing money to foster growth. As outlined by Tu in her article for Make It, disregarding others' opinions and prioritizing long-term strategies are among the methods wealthy individuals employ to preserve and multiply their wealth. Instead of indulging in extravagant purchases like flashy cars, Tu suggests that truly wealthy individuals invest their money in assets such as duplex properties, leveraging rental income to cover expenses and bolster their financial portfolios.
5. Being Comfortable with Change
Matt Higgins has experienced significant change throughout his life, transitioning from a high school dropout living in poverty to a self-made millionaire and co-founder and CEO of private investment firm RSE Ventures. He emphasizes that while not all changes are positive, embracing change is ultimately how one can get ahead.
Higgins shared his perspective during a CNBC Make It: Your Money virtual event in 2023 that trying harder does not mean trying the same. He rejects the notion of blind persistence, advocating for adaptability and openness to change. Higgins emphasizes the importance of being comfortable with the possibility that your initial plan may not be optimal. Mistakes are inevitable, but they offer opportunities for learning and improvement, noting that the most successful individuals embrace adaptability and recognize that their initial business model often evolves significantly over time.
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