Wednesday, June 08, 2005
The Millionaire Mind
The Millionaire Mind
© 2000 by Thomas J. Stanley, Phd
You cannot enjoy life if you are addicted to consumption and the use of credit. Some were credit dependent early in their careers but they eventually saw the light. They went cold turkey, breaking the cycle of borrowing to consume, earning to consume and borrowing more and more money. How many live in luxury homes yet work hard to make payments to the ultimate owner of the mortgage.
Only 5% of households in America have a net worth of 1 million dollars or more. Most of the respondents lived in old well-established upper middle class neighborhoods in homes built in the 1950’s or even the 1940’s or earlier. The traditional family sketches a 54-year-old male married to the same woman for 28 years with three children, 92% married, 95% with children. Neither spouses have ever spent more than $38.00 for a haircut. One in four of us have not spent more then $24.00 for a haircut, $340,000 for a home, $30,000 for a motor vehicle or $1,500 for an engagement ring. 60% of us never received any inheritance. 12 years ago we purchased our current home for an average price of $560,000.00. The median price was $435,000.00. On average the current home is worth 1.4 million dollars, the median value is $750,000.00. We live in a home that was constructed 40 years ago.
There is a strong correlation between playing golf and the level of net worth.
We must admit that we are not into do-it-yourself tasks. Those among us, who are, tend to have significantly less wealth than the average for our group. We were not workaholics and we spend a lot of time socializing with friends and family. When we work, we work hard. We do spend time planning our investments and consult with tax advisers. The five factors most often mentioned by millionaires have been very important in explaining their economic success.
1. Integrity – Being honest with all people.
2. Discipline – Applying self-control.
3. Social Skills – Getting along with people.
4. A supportive spouse.
5. Hard work - More than most people.
Most of us will say that we have strong leadership quality. The average SAT score of a business owner / entrepreneur was 1,235. It is how hard you work; people will invest in you if they believe you are honest and hardworking. They have courage. We think of success not of failure. We practice believing in ourselves and hard work. We focus on key issues we prepare and plan to succeed and we are well organized to deal with big issues.
What was the source of Billy Gilmore’s empathy for the needs of people? I asked him the same question and he told me that his mother had always told him that. In other words always focus on the needs and interests of others. His dad explained why it was important to understand the interests and backgrounds of each person to make decisions. The majority either ignores their critics or use criticism as an inspiration to succeed. Most millionaires define a critic as someone who makes negative judgments and predictions about other people. In fact they seem to enjoy watching people fail. It is as if they get satisfaction from watching their predications come true. Critics are those who have told many a millionaire, you will never succeed, that’s the dumbest idea I have ever heard, there is just no hope for you ever succeeding. Many millionaires actually viewed such comments as merely being theories and they enjoyed disproving theories. The really vicious negative critics have a common trait. Their only talent is negative predictions. Often they are jealous of people with real talent, people with the will to succeed but I find that most professional critics are lacking in the same quality. They can’t stand other people criticizing their views. Successful entrepreneurs tend to have extraordinary drive and resolve. They never allow negative evaluations weaken their resolve. Ignoring criticism of detractors is a significant correlate of economic success and career achievement.
Successful people are different. They don’t follow the crowd and those who don’t follow the crowd are often criticized for being different. Never take rejection personally.
Decamillionaires, those with a net worth of $10,000,000 or more have the highest incidence of regular exercise. Almost two-thirds exercise regularly. Many of the others play golf or tennis but not always on a regular basis. I found very few self-made millionaire who are lethargic or even noticeably overweight.
On average decamillionaires have more of their wealth invested in private or closely held stock than they do in stocks that are publicly traded. Most millionaires are well disciplined. They set their own high goals and then go on to reach these standards. The harder I work the luckier I become. A discipline person sets his or her sites on a lofty target, then figures out productive ways to reach the target. Disciplined people are not usually sidetracked. They can live in a warehouse filled with top brand alcoholic beverages and not indulge themselves.
Millionaires love their careers and are able to perform an extraordinarily high level. Do you realize the value of hiring advisers who may be superior to you in regards to some area of your success equation. If so you may see the value of hiring superior talent. If you don’t get along with people especially people who can give you advice you have a problem. You may be too smart you may not be willing to admit that you need help or you may be so convinced of your intellectual superiority that you perceive no need for advice from intellectual inferiors. I have had to struggle to work very hard to do things. I ended up being in management. I have had to hire some of these geniuses. They are not in management because they weren’t people-oriented. Geniuses don’t have a feel for the work environment or how to say the right thing and you combine that with not working hard. That is bad, to say some of these children who have mediocre academic records are compelled to fulfill their parent’s prophecy and stifle their potential to become millionaires.
Can people learn how to control their fears and develop courage? Can they be taught not to panic when sudden crises are encountered? If so where will this enlightenment come from? The millionaire respondents to my national survey reported on the actions tactics and techniques they used to bolster their courage. Mind over fear. Believe in hard work, believing in myself, preparation, focusing on key issues, being decisive, planning, being well organized to deal with big issues, taking immediate action to solve problems, countering negative thoughts with positive ones, visualizing success, sharing concerns with my spouse, counting my blessings, exercising.
Only 18% of households are headed by self-employed business owner or professional. Fear and courage are related. Courage does not exist in the absence of fear or some danger. But among the decamillionaires more than 20% believe that luck was very important for them. Four in ten felt that luck was important. Luck and risk-taking go hand-in-hand. There is a clear and very significant correlation between willingness to take financial risks and net worth. In the long run it is very beneficial to have a trusted CPA & attorney work with you throughout your adult life.
Sharing concerns with spouse: More sense of qualities when selecting their mates, compassion, wisdom, acceptance, self-discipline, security, even temper, virtue, reliability. They seek a mate who is respectful, patient, cheerful and unselfish. They may encounter ups and downs in cash flow and return on their business investments. A commitment in the couples’ investment will take priority over an upgraded home automobile or vacation. They exercise regularly.
My financial success is the direct result of selecting a specific type or category of business. I surround myself with lot of competent and capable people. It makes your life a lot easier. If you have got mediocre people life can be miserable.
I have never interviewed one successful business owner who was not cost sensitive. A business that does not control cost is out of control. Most successful business owners realize the fact that customers are collected one by one. Love your work and it excites you everyday. Allow full use of your abilities and aptitudes, get high self-esteem from your work, and your vocation will make you financially independent one day. The very best vocations that I find in my research on millionaires are genuinely unique. A perfect vocation is the one that allows for use of their abilities and aptitudes. One of the top ten most profitable small businesses in America, no one had an idea you have to be able to see it then you have to believe you can do it. You have to have something inside of you that wants to kill. You go out and take that opportunity that chance you are king of the mountain.
What can you tell me about your spouse? Down to earth, unselfish, has traditional values, my emotional backbone, patience, understanding. No one ever became wealthy by spending his household’s money on expensive consumer artifacts buy clothes or new cars. No one ever became millionaire by using consumer goods as status symbols while neglecting their investments and public business or publicly traded stock. Shared interests that are related to accumulating wealth are important including preparing household budget planning and making investments setting financial goals and running a business. Couples who share these interests are much more likely to attain millionaire status.
Wealth is more often the result of hard work, perseverance and most of all self-discipline. Most people are shocked when they learn that many millionaires enhance the productivity of their households by having furniture refinished, switching onto companies having shoes resoled using discount coupons, buying supplies in bulk. Most millionaires look to the future. More than two thirds of grocery store shoppers in America today are impulse buyers. Their parents especially their mothers were planners and organizers. The same applies to keeping a strict calendar or planning for bills, family activities and household chores. Children should be instructed and required to keep their own calendar. If you are disorganized in your household environment your children may follow your lead. Large majority of millionaires are not do-it-yourselfers. How much time is spent doing each task during my lifetime. Is there someway I can reduce this time allocation? Are there better uses for my time in doing the tasks I have been doing habitually? Is there is some task that I can undertake that will benefit for the rest of my life?
America’s balance sheet affluent neighborhoods containing millionaires are about 5%. 20% of American households move each year. More than one half of us have not moved even once during the past 10 years. Never borrow long term with the prospect of short-term income. More than one in three of the decamillionaires indicate bargain shopping for home that was part of the foreclosure, divorce settlement or a state bill. Fewer than one in five of millionaires indicate bargain shopping.
There is a strong correlation between net worth and the proportion of 1/12th that is invested in real estate. Net worth, for an average value of home of $550,000.00 the average net worth was $6,000,000.00 or 10%.
The life style activities of millionaires include socializing with children or grandchildren, entertaining close friends, planning investments, taking photographs, consulting with an investment adviser, attending religious services, jogging or running, eating at McDonald’s, playing golf, attending lectures, caring for elderly relatives.
Decamillionaires are nearly twice as likely to play golf than high income producing non-millionaires. Golf is important to many millionaires. Most millionaires are not the do-it-yourself types. The typical millionaire earns more than $320.00 per hour from his vocation.
The higher a person’s net worth the less likely he is to ever play the lottery. If you wish to become affluent associate with economically productive people. The typical millionaire wakes up each workday about 6:40 a.m. The median figure is approximately 6:25 a.m. only about one in five rises before 5:40 a.m. There is no statistically significant correlation between the time one wakes up and one slept. Thinks differently from the crowd, it pays to be different.
Borrowing a lot of money for a new business is the worst thing in the world. If you don’t have any money you learn how to do things without. If you have money you make mistakes. The more money the bigger the mistakes. They are paying interest 24 hours a day 7 days a week.
Amazon: http://www.amazon.com/exec/obidos/ASIN/0740703579
© 2000 by Thomas J. Stanley, Phd
You cannot enjoy life if you are addicted to consumption and the use of credit. Some were credit dependent early in their careers but they eventually saw the light. They went cold turkey, breaking the cycle of borrowing to consume, earning to consume and borrowing more and more money. How many live in luxury homes yet work hard to make payments to the ultimate owner of the mortgage.
Only 5% of households in America have a net worth of 1 million dollars or more. Most of the respondents lived in old well-established upper middle class neighborhoods in homes built in the 1950’s or even the 1940’s or earlier. The traditional family sketches a 54-year-old male married to the same woman for 28 years with three children, 92% married, 95% with children. Neither spouses have ever spent more than $38.00 for a haircut. One in four of us have not spent more then $24.00 for a haircut, $340,000 for a home, $30,000 for a motor vehicle or $1,500 for an engagement ring. 60% of us never received any inheritance. 12 years ago we purchased our current home for an average price of $560,000.00. The median price was $435,000.00. On average the current home is worth 1.4 million dollars, the median value is $750,000.00. We live in a home that was constructed 40 years ago.
There is a strong correlation between playing golf and the level of net worth.
We must admit that we are not into do-it-yourself tasks. Those among us, who are, tend to have significantly less wealth than the average for our group. We were not workaholics and we spend a lot of time socializing with friends and family. When we work, we work hard. We do spend time planning our investments and consult with tax advisers. The five factors most often mentioned by millionaires have been very important in explaining their economic success.
1. Integrity – Being honest with all people.
2. Discipline – Applying self-control.
3. Social Skills – Getting along with people.
4. A supportive spouse.
5. Hard work - More than most people.
Most of us will say that we have strong leadership quality. The average SAT score of a business owner / entrepreneur was 1,235. It is how hard you work; people will invest in you if they believe you are honest and hardworking. They have courage. We think of success not of failure. We practice believing in ourselves and hard work. We focus on key issues we prepare and plan to succeed and we are well organized to deal with big issues.
What was the source of Billy Gilmore’s empathy for the needs of people? I asked him the same question and he told me that his mother had always told him that
Successful people are different. They don’t follow the crowd and those who don’t follow the crowd are often criticized for being different. Never take rejection personally.
Decamillionaires, those with a net worth of $10,000,000 or more have the highest incidence of regular exercise. Almost two-thirds exercise regularly. Many of the others play golf or tennis but not always on a regular basis. I found very few self-made millionaire who are lethargic or even noticeably overweight.
On average decamillionaires have more of their wealth invested in private or closely held stock than they do in stocks that are publicly traded. Most millionaires are well disciplined. They set their own high goals and then go on to reach these standards. The harder I work the luckier I become. A discipline person sets his or her sites on a lofty target, then figures out productive ways to reach the target. Disciplined people are not usually sidetracked. They can live in a warehouse filled with top brand alcoholic beverages and not indulge themselves.
Millionaires love their careers and are able to perform an extraordinarily high level. Do you realize the value of hiring advisers who may be superior to you in regards to some area of your success equation. If so you may see the value of hiring superior talent. If you don’t get along with people especially people who can give you advice you have a problem. You may be too smart you may not be willing to admit that you need help or you may be so convinced of your intellectual superiority that you perceive no need for advice from intellectual inferiors. I have had to struggle to work very hard to do things. I ended up being in management. I have had to hire some of these geniuses. They are not in management because they weren’t people-oriented. Geniuses don’t have a feel for the work environment or how to say the right thing and you combine that with not working hard. That is bad, to say some of these children who have mediocre academic records are compelled to fulfill their parent’s prophecy and stifle their potential to become millionaires.
Can people learn how to control their fears and develop courage? Can they be taught not to panic when sudden crises are encountered? If so where will this enlightenment come from? The millionaire respondents to my national survey reported on the actions tactics and techniques they used to bolster their courage. Mind over fear. Believe in hard work, believing in myself, preparation, focusing on key issues, being decisive, planning, being well organized to deal with big issues, taking immediate action to solve problems, countering negative thoughts with positive ones, visualizing success, sharing concerns with my spouse, counting my blessings, exercising.
Only 18% of households are headed by self-employed business owner or professional. Fear and courage are related. Courage does not exist in the absence of fear or some danger. But among the decamillionaires more than 20% believe that luck was very important for them. Four in ten felt that luck was important. Luck and risk-taking go hand-in-hand. There is a clear and very significant correlation between willingness to take financial risks and net worth. In the long run it is very beneficial to have a trusted CPA & attorney work with you throughout your adult life.
Sharing concerns with spouse: More sense of qualities when selecting their mates, compassion, wisdom, acceptance, self-discipline, security, even temper, virtue, reliability. They seek a mate who is respectful, patient, cheerful and unselfish. They may encounter ups and downs in cash flow and return on their business investments. A commitment in the couples’ investment will take priority over an upgraded home automobile or vacation. They exercise regularly.
My financial success is the direct result of selecting a specific type or category of business. I surround myself with lot of competent and capable people. It makes your life a lot easier. If you have got mediocre people life can be miserable.
I have never interviewed one successful business owner who was not cost sensitive. A business that does not control cost is out of control. Most successful business owners realize the fact that customers are collected one by one. Love your work and it excites you everyday. Allow full use of your abilities and aptitudes, get high self-esteem from your work, and your vocation will make you financially independent one day. The very best vocations that I find in my research on millionaires are genuinely unique. A perfect vocation is the one that allows for use of their abilities and aptitudes. One of the top ten most profitable small businesses in America, no one had an idea you have to be able to see it then you have to believe you can do it. You have to have something inside of you that wants to kill. You go out and take that opportunity that chance you are king of the mountain.
What can you tell me about your spouse? Down to earth, unselfish, has traditional values, my emotional backbone, patience, understanding. No one ever became wealthy by spending his household’s money on expensive consumer artifacts buy clothes or new cars. No one ever became millionaire by using consumer goods as status symbols while neglecting their investments and public business or publicly traded stock. Shared interests that are related to accumulating wealth are important including preparing household budget planning and making investments setting financial goals and running a business. Couples who share these interests are much more likely to attain millionaire status.
Wealth is more often the result of hard work, perseverance and most of all self-discipline. Most people are shocked when they learn that many millionaires enhance the productivity of their households by having furniture refinished, switching onto companies having shoes resoled using discount coupons, buying supplies in bulk. Most millionaires look to the future. More than two thirds of grocery store shoppers in America today are impulse buyers. Their parents especially their mothers were planners and organizers. The same applies to keeping a strict calendar or planning for bills, family activities and household chores. Children should be instructed and required to keep their own calendar. If you are disorganized in your household environment your children may follow your lead. Large majority of millionaires are not do-it-yourselfers. How much time is spent doing each task during my lifetime. Is there someway I can reduce this time allocation? Are there better uses for my time in doing the tasks I have been doing habitually? Is there is some task that I can undertake that will benefit for the rest of my life?
America’s balance sheet affluent neighborhoods containing millionaires are about 5%. 20% of American households move each year. More than one half of us have not moved even once during the past 10 years. Never borrow long term with the prospect of short-term income. More than one in three of the decamillionaires indicate bargain shopping for home that was part of the foreclosure, divorce settlement or a state bill. Fewer than one in five of millionaires indicate bargain shopping.
There is a strong correlation between net worth and the proportion of 1/12th that is invested in real estate. Net worth, for an average value of home of $550,000.00 the average net worth was $6,000,000.00 or 10%.
The life style activities of millionaires include socializing with children or grandchildren, entertaining close friends, planning investments, taking photographs, consulting with an investment adviser, attending religious services, jogging or running, eating at McDonald’s, playing golf, attending lectures, caring for elderly relatives.
Decamillionaires are nearly twice as likely to play golf than high income producing non-millionaires. Golf is important to many millionaires. Most millionaires are not the do-it-yourself types. The typical millionaire earns more than $320.00 per hour from his vocation.
The higher a person’s net worth the less likely he is to ever play the lottery. If you wish to become affluent associate with economically productive people. The typical millionaire wakes up each workday about 6:40 a.m. The median figure is approximately 6:25 a.m. only about one in five rises before 5:40 a.m. There is no statistically significant correlation between the time one wakes up and one slept. Thinks differently from the crowd, it pays to be different.
Borrowing a lot of money for a new business is the worst thing in the world. If you don’t have any money you learn how to do things without. If you have money you make mistakes. The more money the bigger the mistakes. They are paying interest 24 hours a day 7 days a week.
Amazon: http://www.amazon.com/exec/obidos/ASIN/0740703579
