How to Become a Millionaire: 10 habits that set the wealthy apart

Is becoming a millionaire just about luck or inheritance? Not really. According to Credit Suisse, there are now over 62.5 million millionaires worldwide, with many starting from nothing. But what makes them different? Explores the simple steps and everyday habits that can help anyone learn how to become a millionaire, even without a big income or fancy degree.

Millions of people dream about how to become a millionaire, but few understand the real path. 

Globally, 62.5 million people now hold millionaire status in dollar terms, that’s about 1.2% of the global adult population. Yet research shows that 80% of millionaires are self-made rather than inheriting wealth. 

So if most are not born rich, how do they succeed?

The key is not luck but daily actions. 

Did you know that 88% of millionaires dedicate at least 30 minutes a day to reading or self-improvement, and 65% have at least three income streams before hitting their first million

So the real question is

Is becoming a millionaire possible for anyone?

Many people believe that millionaires are born into money or are just lucky. But according to a study by Fidelity, 88% of millionaires are self-made, meaning they earned their wealth through work, saving, and investing,  not inheritance. This proves that almost anyone can learn how to become a millionaire with the right mindset and steps.

The path to wealth isn’t always fast. It takes time, discipline, and patience. But it’s far more achievable today than it was in the past. With digital tools, investment apps, and side hustle opportunities, the road to a million is wide open if you know where to start.

Start early and be consistent

One of the key components of how to become a millionaire is to start early and remain consistent with your savings and investments. Time is a powerful tool when it comes to building wealth. The earlier you start investing, the more time your money has to grow, thanks to compound interest. Even small, consistent investments can accumulate over time, making a significant impact on your wealth in the long run.

For example, if you start investing $200 a month at an average annual return of 7%, you could accumulate nearly $600,000 over 40 years. The key is to be consistent and invest regularly, even if the amounts seem small at first. Regular savings, combined with compound interest, can lead to significant wealth over time.

Create a detailed financial plan

Understanding how to become a millionaire also involves creating a clear financial plan. A financial plan helps you outline your goals, set a budget, and create a strategy to achieve your desired wealth. Start by evaluating your income, expenses, and debts. Then, create a budget that allows you to allocate a portion of your income towards savings and investments.

This plan should also include clear financial goals, such as paying off debt, saving for retirement, and building an emergency fund. Break these goals down into manageable steps and set deadlines to track your progress. Creating and sticking to a financial plan will provide a roadmap for your journey to becoming a millionaire.

Invest in assets that appreciate in value

Another vital factor in how to become a millionaire is investing in assets that appreciate over time. These assets could include stocks, real estate, or other investments that are likely to increase in value. While putting money in a savings account can provide safety, it doesn't offer the potential for significant growth.

Investing in stocks, for example, has historically provided higher returns than savings accounts or bonds. The stock market may be volatile, but over the long term, it has shown an average annual return of around 7-10%. Investing in real estate can also provide long-term growth, especially if you buy properties in areas expected to appreciate in value.

By consistently investing in assets that have the potential to grow in value, you can build a portfolio that helps you accumulate wealth over time. However, it’s important to diversify your investments to reduce risk and maximise returns.

Live below your means

One of the most important lessons on how to become a millionaire is learning to live below your means. Many millionaires didn't become wealthy by spending lavishly on luxuries or excessive consumer goods. Instead, they focused on living frugally and saving the majority of their income.

To live below your means, start by creating a budget that ensures you only spend what is necessary. Avoid taking on excessive debt, and focus on prioritising saving and investing. Many successful millionaires live in modest homes, drive affordable cars, and limit their discretionary spending. By living below your means, you can maximise your savings and invest more in assets that will help you build wealth over time.

Build multiple streams of income

Another strategy for how to become a millionaire is to build multiple streams of income. Relying solely on a single source of income, such as your job, can limit your wealth-building potential. Many millionaires build wealth by diversifying their income sources through side businesses, investments, and freelance work.

Consider starting a side hustle, investing in stocks, or creating passive income streams through rental properties or royalties. By diversifying your income sources, you can increase your financial security and create opportunities to grow your wealth more quickly.

10 habits that set the wealthy apart

When you think about how to become a millionaire, it’s important to recognise that wealth isn't only about earning money; it's also about the habits and behaviours that help people accumulate and preserve wealth. Below are ten habits that set the wealthy apart and help them stay on track towards their financial goals.

• Commit to Lifelong Learning- Successful millionaires never stop learning. Whether it’s through reading, taking courses, or learning from mentors, they continually seek ways to improve their knowledge and skills. Staying informed and learning about new financial opportunities, investments, and personal growth strategies is key to building long-term wealth.
• Develop a Growth Mindset- A growth mindset is the belief that abilities and intelligence can be developed over time. Millionaires embrace challenges, learn from their failures, and focus on growth. They view setbacks as opportunities to learn and improve, rather than obstacles.
• Set Clear Goals- Millionaires are goal-oriented and constantly set clear, measurable goals for themselves. Whether it’s earning a certain amount of money or achieving a financial milestone, setting goals gives them a sense of direction and motivation.
• Surround Yourself with Like-Minded People- Building wealth is easier when you surround yourself with positive, successful individuals. Millionaires tend to spend time with others who share their values and ambitions. By networking with like-minded people, you can gain valuable insights, advice, and support as you work towards your own financial success.
• Prioritise Health and Wellbeing- While wealth is important, many millionaires understand the importance of maintaining good health. By prioritising physical and mental well-being, they are able to stay focused, energetic, and productive, all of which contribute to long-term success.
• Take Calculated Risks- Millionaires are not afraid to take calculated risks, whether it’s investing in a business, a new stock, or real estate. They understand that risk is part of the journey to wealth, but take steps to minimise potential losses by researching thoroughly and making informed decisions.
• Stay Disciplined and Focused- Discipline is crucial for success. Millionaires stick to their financial plans, even when faced with the temptation to spend or deviate from their goals. Staying disciplined and focused on long-term wealth creation is a common trait among the wealthy.
• Embrace Delayed Gratification- Instead of seeking immediate rewards, millionaires often practice delayed gratification. They focus on long-term financial growth, which may mean sacrificing short-term luxuries for long-term gains. This mindset allows them to prioritise their financial future over temporary pleasures.
• Make Smart Investment Decisions- Investing wisely is a key factor in how to become a millionaire. Millionaires make informed decisions about where to allocate their money, whether it’s in stocks, real estate, or businesses. They understand the importance of diversification and risk management when it comes to investments.
• Stay Consistent with Money Management- Millionaires are consistent with their money management, tracking their spending, saving, and investing regularly. By creating good financial habits and sticking to a budget, they are able to maximise their wealth and avoid falling into bad financial habits.

The road to becoming a millionaire

It’s about adopting the right habits, investing wisely, and living below your means. By starting early, creating a financial plan, and focusing on long-term wealth-building strategies, anyone can take the necessary steps to achieve financial independence. 

Remember, it’s not about having a high income; it’s about making smart financial decisions, living intentionally, and being consistent with your efforts. The wealthiest individuals didn’t get there overnight; they worked hard, made smart choices, and stayed disciplined over time. Whether you’re just beginning or are well on your way to achieving your financial goals, applying these principles can help you on your journey to becoming a millionaire.