According to Credit Suisse Group, Singapore had 270,000 millionaires in 2020, and this number is expected to surge by more than 60% to 437,000 millionaires by 2025.
Singapore’s millionaire density – or percentage of millionaires in the total population – was 5.5% in 2020, the second-highest in Asia after Hong Kong’s 8.3%, the report noted.
Eager to become a self-made millionaire yourself? This post explores 7 habits of self-made millionaires!
1. Set Big Goals
When it comes to goal-setting, the wealthy and successful don’t mess around.
They set big and ambitious goals for themselves.
Have you heard of the saying? Shoot for the moon, even if you miss, you’ll land among the stars.
So stop aiming small, and start thinking BIG.
Don’t sell yourself short. In terms of savings & investment goals, aim higher and push yourself further.
Give yourself a shorter timeframe, and push yourself out of your comfort zone.
By setting bigger goals for yourself, you also reap the benefit of looking at how to achieve your goals from a different perspective.
For example, if you only have 5 (instead of 10 years) to become a millionaire, what should you do different?
Think big, and you may be amazed at your own resourcefulness.
2. Nourish your Brain
Successful people make it a point to nourish their brain.
While it is easy to just waste your days away watching what’s trending on Netflix, millionaires rarely waste time. Instead, they make it a point to read and learn.
According to a 5 year study on self-made millionaires, the rich would rather be educated than entertained.
88% of rich people “devote thirty minutes or more each day to self-education or self-improvement reading” and that “most did not read for entertainment. The rich read to acquire or maintain knowledge.”
Check out FH’s recommended reading list for investors!
If you don’t like reading, you can turn to audio-books (and multi-task while you’re listening to something useful), or watch documentaries or useful content on Netflix or YouTube!
Did you know that Financial Horse has a YouTube Channel?
3. Minimize Decision Fatigue
Mark Zuckerberg famously wore the same t-shirt for public events for several years.
When asked why, Mark replied:
“I really want to clear my life to make it so that I have to make as few decisions as possible about anything except how to best serve this community,” Zuckerberg said.
He said even small decisions like choosing what to wear or what to eat for breakfast could be tiring and consume energy, and he didn’t want to waste any time on that.
“I feel like I’m not doing my job if I spend any of my energy on things that are silly or frivolous about my life,” he said.
Zuckerberg pointed out that numerous other influential people, like Apple founder Steve Jobs or President Barack Obama, adopt the same mentality.
Some other ways to reduce decision fatigue:
- Pre-plan your work outfits weekly
- Have a master grocery list (staples that need to be replenished on a recurring basis)
- Set reminders for important recurring events (e.g. birthdays)
4. Curate your Circle
Millionaires surround themselves with like-minded successful people.
You are the sum of who you surround yourself with.
It doesn’t mean that you should only hang out with “rich people”, rather you should curate your circle meaningfully – to those people who inspire you, lift you up and support you.
This doesn’t only relate to people you know in real life!
This also means following influential people who are successful, for instance, by curating your social media feed.
5. Multiple Income Streams
Another important pillar of being a millionaire is to have multiple income streams.
This means finding multiple sources of income, and investing wisely!
Besides your salary, think about other sources of income.
For instance, having a rental property.
Check out FH’s Property Guide for Singapore Investors!
And needless to say, investing is definitely an important pillar for you to grow your wealth.
Depending on your age group and risk appetite, tweak your portfolio to have both growth & value stocks.
Click here to read more on how to get started in investing + the importance of asset allocation!
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6. Live within your Means
If you’ve read the Millionaire Next Door, you’ll recognize that most millionaires get to where they are, not by being flashy, but by living below their means.
Whatever your income, you will not achieve millionaire status if you don’t keep a watchful eye on your expenses.
7. Active Leisure > Passive Leisure
Finally, if the pandemic has taught us anything, it is that health is wealth.
There’s no point in accumulating wealth if you don’t have health to enjoy it.
This is why most millionaires actively maintain a health lifestyle.
Microsoft CEO Satya Nadella is strict about his exercise regime:
“For me, the daily ritual is just a half-hour of hitting the gym every day. It doesn’t matter where I am, what time zone, how late I got in, I get up and get to the gym.”
Pay attention to your stress levels, and maintain a good diet and sleep schedule to ensure that you are in tip-top shape!