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.
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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