I recently read an article entitled "5 Secrets of Self-Made Millionaires."  What I liked most about the article was the description of the modern millionaire.  Contrary to the lifestyle of the rich and famous, today’s modern - read that as “new” millionaires - are just like you and me.  They live in modest neighborhoods, still work full-time, and they are thrifty shoppers.  In other words, they’re smart with their money.

To be considered a millionaire, you have to have a million, after all your debts are satisfied.  Can you pass that litmus test?  I know I can’t.  At least not today but I believe that I will.

 

Here are the 5 secrets of Self-made millionaires, peppered with a few thoughts of my own.

 

1. Set your sights on where you’re going.  In other words, have a plan and work it.  Say, I want to be a millionaire.  What is the plan to get there?  Investing, growth, savings.  My plan is to grow my company MatterMax LLC.

   2. Educate Yourself.  Know the basics of finance.  I have an MBA in Marketing from Babson College, so I already know the numbers.  My blog will cover Essential Financial Knowledge for the entrepreneur later this week.  Another strategy – live below your means.

   3. Passion pays off.  Forget how much will I be paid.  Instead, focus on what you love to do.  What do you have to lose?  Most jobs have already tanked – might as well do what you love doing.  I like sharing great merchandise, hence, matterplanet.com and giving good advice to business owners like myself.  Do what you love.

   4. Grow your money.  To me – this is the best advice in Krystyn’s story.  Pay Yourself First.  How many us really do that?  And, beyond that, I strongly recommend that you buy from each other.  Support the companies that support you.  You might even be able to broker a partnership with the company in your neighborhood but I doubt very seriously if you can get in on the profits of GE, Kraft Foods or Smith & Noble.

   5. No guts, no glory.  Go for it.  When I first launched my company, it was very different than the one that I manage today.  I am fearless when it comes to finding the next opportunity.  Of course, I did my market research before I lurched into something new, but at least I had the guts to do something versus just watching the clock tick – tock.

   6. The Biggest Secret?  Stop spending.  Now, that’s the Lord’s honest truth.  When I stopped spending on frivolous stuff, I had so much more money.  I don’t need two cars.  I need one (used) reliable car and a manageable schedule.  I don’t buy bottled water.  I refill jars from the filtered tap on my fridge.  I don’t go to the hairdresser.  I braid my own hair.  I don’t do weekly manicures.  I have my cuticles cut once a year.  As a result of all of these savings, I have more money.  More to invest, hold as retained earnings, and save.

 

Money used to be illusive in my community.  No more.  I’m confident that we will have more millionaires because we’re managing our money smarter, buying from each other – smartest, and investing in ourselves – smart. 

 

Rewritten from “Five Secrets of Self-Made Millionaires” by Kristyn Kusek Lewis.