Many people are wealthy because their parents are too. Inequalities are heavily influenced by inherited wealth, as demonstrated by economist Thomas Piketty, Director of Studies at the School for Advanced Studies in the Social Sciences (EHESS). However, according to Brian Tracy, an American author and speaker specializing in the analysis of success, becoming rich is within reach for everyone. It’s essentially a matter of emulating those who are already millionaires.
For him, anyone can amass a fortune; it’s all a matter of habits, as he explains in the latest edition (2021) of his book “The Millionaire Habits.” There are good and bad habits, and it’s the good ones that lead to wealth. Brian Tracy asserts that most millionaires and billionaires “have accumulated their wealth in the span of a lifetime.” He further notes, “Millionaires come from all walks of life. Some have had extensive education, while others have not. Some come from the best universities, while others dropped out of school at the age of sixteen with no diploma.”
Reassuring the skeptics: anyone can become a millionaire. But to do so, it’s necessary to adopt specific habits. Here are nine of them, among those recommended by Brian Tracy:
Think in terms of financial independence.
“Self-made millionaires” have developed the habit of primarily thinking in terms of financial independence, deciding at a young age and sometimes later in life to achieve specific financial goals, as Brian Tracy asserts. Furthermore, they have acquired discipline to organize and coordinate all elements that impact their finances — their income, investments, expenses, and insurance. They are also willing to make the necessary sacrifices to reach their goals.
Once they reach the age of majority, instead of spending recklessly and going into debt with friends or a bank, these individuals know how to save and accumulate money.
Don’t try to make a fortune quickly
“Earning money is a long-term endeavor,” warns Brian Tracy. Most affluent individuals organize their finances to achieve annual returns of 8 to 10% compared to their investments. They do not fall for get-rich-quick schemes and do not seek fast ways to make a fortune by gambling, playing the lottery, or making very risky bets in the stock market.
Instead, they demonstrate patience and adopt a long-term view by forcing themselves to save money regularly without speculating. These individuals avoid taking risks, and their wealth grows every year… until it surpasses the million-euro mark.
Be frugal
Self-made millionaires do everything they can to save money. According to Brian Tracy, they never buy new items and always prefer used ones. For the purchase of a car, for example, they will wait until a good model is two years old, and after having it inspected by a mechanic, they will negotiate a five-year warranty. Most cars lose 30 to 50% of their value after just two years, while still being in excellent condition and covered by the manufacturer’s warranty.
Furthermore, self-made millionaires would never lease an item if they can rent it, and they would never rent if they can borrow. Despite appearing frugal, they live by the adage “a penny saved is a penny earned” and “small streams make big rivers.”
Save regularly
We are capable of quickly adapting, according to Brian Tracy, who encourages the habit of saving regularly, starting at a young age. “If you save 10% of your income and force yourself to live on the remaining 90%, you will quickly adapt to your slightly lower standard of living and become comfortable with that lower amount,” he assures.
It is also possible to opt for a less abrupt method for those in debt and gradually increase the percentage of the saved amount, starting by saving only 1% of your income per month. Once you have become accustomed to living on the remaining 99%, increase the monthly percentage to 2%. Continue this process until you are saving 15 to 20% of your earnings.
“You won’t even notice the difference in your standard of living because the change has been gradual,” explains Brian Tracy. “But in terms of your finances, the difference will be absolutely extraordinary.”
The American author also recommends opening a separate bank account where money flows in one direction only: deposits. The funds in this savings account should never be withdrawn or spent.
Postpone or postpone your purchases (until you do without them)
Once you’ve developed the habit of saving, you should quickly be able to reduce your daily expenses. It’s essential to be cautious about accumulating debt and avoid taking on multiple credits, as highlighted by Brian Tracy. You’ll also start postponing or deferring purchases, ultimately choosing not to buy some items.
As a result, you’ll see your bank account continue to grow without being depleted by non-essential expenses. Brian Tracy predicts saving a few hundred euros after one year, then a few thousand after two years, before reaching several hundred thousand – “perhaps even a million” – in 10 or 20 years.
Set aside your exceptional cash flow
Brian Tracy recommends opening a “financial fortress” savings account to deposit money into whenever you can and never using it for anything other than investing. Any unexpected income, like a work bonus, a tax refund, or the profit from items sold at a garage sale, should be directed into this account to make it grow.
Stop seeing saving as a punishment
Saving rather than spending is often seen as a punishment, according to Brian Tracy. “As children, our parents encouraged us to save part of our allowance. But, back then, we viewed money as a tool to buy candy, toys, and other enjoyable things. That’s why we considered saving as a punishment, a sacrifice that deprived us of those things,” explains the author.
Savings are thus associated with pain and gloom, while spending is associated with pleasure. As adults, some people prefer to spend their money as soon as they have it. “You must reverse the wires,” says Brian Tracy. “In other words, unplug the wires from one set of attitudes and reconnect them to another. You should feel pleasure every time you think about saving and accumulating, and discomfort every time you think about spending and wasting your money.”
The more you focus on the joy and satisfaction of watching your savings and investments grow, the more motivated you’ll be to spend less and save more to make your account flourish.
Spend more time managing your finances
Wealthy individuals dedicate much more time to financial management than the average person. “The average adult spends two to three hours each month dealing with their finances, usually when paying bills. The self-made millionaire, on the other hand, spends 20 to 30 hours per month thinking, studying, and managing their finances,” states Brian Tracy.
Spending more time on one’s finances is the best way to make the right decisions and achieve the most fruitful results. People who have amassed wealth are said to follow two financial rules, according to the speaker: “rule number one: never lose money,” and “rule number two: if tempted, apply rule number one.”
Find a good financial advisor to invest wisely
To make your savings grow well and make sound investment decisions, it is essential to seek good financial advice. “Ask around to find a financial advisor who can boast of having achieved good results by investing their own money in the areas they advise you on,” recommends Brian Tracy.
He also encourages conducting thorough research before investing in anything, following the rule: “Spend as much time researching your investment project as you spent earning the money you plan to invest.” Don’t let anyone push you into making a rushed decision.
“Sometimes, the best investments are the ones you don’t make,” he adds, citing the example of billionaire Warren Buffet, who refused to invest in internet companies during the 1990s boom. The bursting of the bubble eventually proved him right.
If you want to be the next Warren Buffet or, failing that, become a millionaire and reach at least a million, it’s up to you! There’s no doubt that by following Brian Tracy’s advice to the letter, you will also become a millionaire, in 10 to 20 years. Unless it’s not that simple…
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