60 Best Pieces of Financial Advice That Will Make You A Millionaire
This site gathered all the best, honest, practical, no bullshit pieces of financial advice from thousands of business and self-help books here in one article.
1. If you rely on earning a wage or salary to put money in your pocket, you will be forever caught up in the vicious cycle of needing money, earning money and spending money.
2. People who drive Lamborghinis and jetset around the world did not get there because they “Got Rich Slowly” by investing in mutual funds, clipping coupons, and maxing out their 401(k)s. Those techniques are not an effective road to wealth.
3. The “Get Rich Slowly” approach is faulty because it takes a lifetime of work, it’s dependent on getting lucky with your investments, and even if you do get rich, you’ll be too old to enjoy it.
4. “Think about it. Have you ever met a college student who got rich investing in mutual funds or his employer’s 401(k)? How about the guy who bought municipal bonds in 2006 and retired in 2009? I wonder if that guy driving a $1.2-million car can because of his well-balanced portfolio of mutual funds? These people don’t exist because the youthful rich are not leveraging 8% returns but 800%.” (Source)
5. People think that working hard for money and then buying things that make them look rich will make them rich. In most cases it doesn’t. It only makes them more tired.
6. Rich people believe that financial freedom is more important than displaying high social status. You can display high social status all you want, but if you’re still dependent on active income then you’re one very vulnerable fella.
7. If you think you can afford it, you can’t. When you buy something cheap, like a candy bar or a pair of $10 sandals, you never ask “can I afford this?” or “how can I make this purchase work?”. If you are trying to justify a large purchase to yourself, then you can’t really afford it.
8. Your debts are parasitic because they force you to work harder and longer. Your mortgage, car payment, credit card bill, etc. all force you to work more than you had to if you bought less stuff. Having to work limits your choices. When you’re making a big purchase, consider its time cost. Is that $50k BMW worth 1 year of your life?
9. The key to controlling parasitic debt is to control instant gratification. It’s much easier not to eat chocolate cookies if you don’t bring them home from the grocery store, and it’s easier to avoid debt if you don’t buy useless things. When you’re thinking about buying something, think about whether you really need it, whether you’ll still be using it 6 months from now, and so on.
10. In general, jobs suck because you have limited leverage (being more productive will not get you a raise) and limited control (what if you’re fired? What if your company is doing poorly and forces you to take a pay cut? etc.) General problems with jobs: you’re selling your time (and your life) for money, the experience you accumulate is limited (you’d learn much more running your own business for a month than working for someone else for a year), you’re subject to the whims of your boss/employer, you have to deal with office politics, and you have almost no control over your income.
11. Take advice from people who have lived what they wrote. If they are primarily writers and public speakers, and that is their business model, toss the book and move on. The best advice comes from people who have lived it. Don’t waste your money on expensive ($3k+) seminars and workshops. Those make the speakers rich but are rarely worth the money for attendees.
12. Amateurs have a million plans and they all start tomorrow. Professionals work hard on a single plan detail by detail. Thinking big is overrated. Ninety-nine percent of success is to get the work done.
13. Find a need, create a business to meet it and affect millions (or fewer but for lots of money per sale), exceed expectations, plan the business to lead to a major liquidation event down the road, sell, let that money earn for you for the rest of your life and live off the income. The more your money works, the less you will have to work.
14. The vast majority of millionaires became rich by being in their own business.
15. People don’t pay to satisfy your need to do what you love, they pay for you to solve their problems.
16. When you’re not a pushy asshole, people trust you. When they trust you, they do business with you.
17. Most businesses work best if they are kept simple rather than made complicated; therefore simplicity should be a key goal in design and unnecessary complexity should be avoided.
18. Use the wisdom, knowledge, and skills of other people to further your own cause. Not only will such assistance save you valuable time and energy, it will give you an aura of efficiency and speed. That’s how billionaires are made.
19. People are frugal in guarding their personal property; but as soon as it comes to squandering time they are most wasteful of the one thing in which it is right to be stingy.
20. Unsuccessful people procrastinate by giving up on their long-term goals for immediate gratification. Procrastination is like an addiction. It offers temporary excitement and relief from boring reality.
21. Being wealthy is not about money, fancy cars, expensive vacations, or vacation homes in Fiji. Being wealthy means being healthy, being surrounded by great friends and family, and the freedom to live life how you want to live it.
22. The more scared we are of a work to improve our business, the more sure we can be that we have to do it.
23. Process, Not Product. If you find yourself avoiding certain tasks because they make you uncomfortable, there is a great way to reframe things: Learn to focus on process, not product.
24. Clarity about what matters the most in your business provides clarity about what does not.
25. Use the 80/20 rule. Give 80 percent of your effort to the top 20 percent (most important) activities. Another way is to focus on exceptional opportunities that promise a huge return. It comes down to this: give your attention to the areas that bear fruit.
26. Assume and expect every project will take 10x the resources and put effort into it accordingly. Literally, the amount of resources you think a project will consume, multiply that by ten and that is what is required. (Source)
27. Opportunities are everywhere, people just don’t see them. Whenever you hear people complaining or you observe inefficiencies, those are great opportunities to start a business!
28. If you have a great idea but someone is already doing it, don’t worry and do it anyway! There will always be competition, and you should aim to be better than them, not to run away from them.
29. Forget chasing big ideas and instead try to take something and make it better. Starbucks, McDonald’s, Walmart, etc. are all iterations of ideas and businesses that had existing for many years.
30. The price of freedom is money. Whether you want to buy a nice car, start a non-profit foundation, or work on your personal dream project, not having to worry about money is what lets you focus on those things. Figure out what you want so that you can work backward and figure out what you need to get there.
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