We heard all the advice in the world from “gurus” claiming there are secrets to becoming wealthy. After years of building my own businesses and interviewing multiple millionaires, I would have to say that those “secrets” aren’t so secret after all. If anything, they’re pretty common sense concepts. And they’re BORING concepts. But as I’ve learned over the years, the hardest part of building a business comes when you run into the boring stuff. That’s where most entrepreneurs fail. In this article, I’m giving you the tips my millionaire mentor gave me on how to become a millionaire quicker than normal. He owns a golf course and several real estate businesses throughout New York all the way down to Florida.
These 20 power moves (as told to me by my mentor) will help shorten your learning curve by 25 years and put you on a slightly faster track to wealth. I ask that you keep an open mind and keep in mind that the advice given in this article MEANS NOTHING if you don’t ACT on them.
Power Move #1: Seek Advice From Other Successful People– No matter what your goal may be; whether it’s starting a business, becoming a highly paid executive, or making a mid-career switch; find someone who has already done it successfully and ask for his or her insight. If direct contact isn’t an option (don’t rule it out before trying), look for the person’s books, speeches, and interviews.
Power Move #2: Build Social Capital Constantly– Forming relationships and making connections has been sound business advice for many decades and still works today. It’s a concept that is VITAL to success. You gain social capital by forming sincere relationships with people you like and care about, then helping those people do their jobs better. And oftentimes, they return that favor to you by thinking of you for challenging, unique opportunities, which are often the most lucrative. In other words: To get opportunities, you really have to have social capital. No one’s just going to pick you.
Power Move #3: Always Keep Going, No Matter What– Don’t be seduced by the myth of overnight success. Setbacks and struggles are common among business owner millionaires. To get through the rough patches, just keep making decisions based on integrity and your business plans or life goals. Adversity helps you focus and establish a goal and sacrifice to get there. The key word here is “perseverance”.
Power Move #4: Affiliate Yourself With Quality Organizations or Create Them– It’s true that many millionaires find their path to wealth in owning a business, but it’s not a requirement. There’s a lot you can do within an organization to become wealthy. The most important thing is to look at the organization you’re in and determine whether it can get you to where you what to go. Look for stock options, profit sharing, generous 401(k) plans, regular salary increases, and commissions.
Power Move #5: Learn Effective Negotiation Techniques– How you start is simple. People usually fall on an anchor point. Give an artificially high number, even if you’re joking. Come in and say, ‘Let’s negotiate this million-dollar salary.’ Another way is to focus on asking your boss yes or no questions. When requesting a raise, you could say to your boss, “I’ve worked really hard on this project. Did you know that it came in on time and under budget?” Then follow up with “I’d like a $10,000 salary raise. Is that something you can approve in the next two months?” If the answer is no, say you’ll check in again in 2 months, and follow through.
Power Move #6: Invest Only In Things You Understand– While we fully comprehend how owning shares works, we might not have a deep knowledge of some sectors of the market, so we don’t invest heavily there. I choose industries that I’m more familiar with like real estate or energy over those I’m not like tech or pharmaceuticals. Invest in companies that makes sense to you.
Power Move #7: Take On Good Debt And Some Risk– Bad debt is blowing $300 on shoes. Good debt is taking out an equity loan on your house, in which you can deduct the interest, and using that to start a business. Having some money in high-risk investments or endeavors is essential. Nobody gets rich without opening up to some risk. Managing risk appropriately also means not becoming overly invested in one area. Diversification is key.
Power Move #8: Generate Opportunities By Solving Other People’s Problems– The whole world’s looking for a great idea and they trip over one about three times a freakin’ week. Go through your daily routine to identify a problem you face. Then ask yourself how you could have avoided it. The answer you get is a great business idea. People will give you fame and fortune if you focus on them and solve their problems.
Power Move #9: Create A Vehicle That Makes Money Even When You’re Not Working– Most of you make money by trading your time for a yearly salary or hourly rate. If you want to break into the next echelon of wealth, you need to think past that formula. There are few people who are so talented they can trade their time for money like professional athletes and neurosurgeons. But most of us have got to create a vehicle. Invent products or services that can be sold over and over again without your input.
Power Move #10: Plan An Exit Strategy– Millionaires often build businesses with the ultimate goal of selling them. Nobody gets rich running a business; they get rich by selling it. I recommend that you familiarize yourself early on with how companies are valued for sale. You have to see the reward right at the beginning. Even if you don’t own a business, it’s good to contemplate your next move. Nothing is forever, and change can bring opportunities for a higher salary and better perks.
Power Move #11: Know Where Your Money Goes – As your income grows, people start spending up to that new level of income or beyond it. Lorenzo, that has been a problem of yours for a while (how in the world did he know that?). The average American has more money go through their fingers than it takes to be a millionaire. They just spend it all away. The best way to combat this habit is to establish a budget that reflects your income and expenses, then tailor it to funnel money to your real priorities.
Power Move #12: Identify A Reason To Save– I’ve always had a goal in mind. I identified a certain amount of wealth I wanted by a set point in time. You have to plan for that. It doesn’t happen by accident. A friend of mine who made his first million in real estate, thought about his savings in these terms. He thought that if he can save $30,000, he can put that as a down payment on a house. Clearly, it worked.
Power Move #13: Invest A Portion of Your Income For The Future– Spend less than you earn. Save and invest the difference. While most would look at a dollar as something to spend now or save for later, we see that dollar as an ongoing stream of income for our kids and grand kids. My grandfather had a saying. “You can have beef once or milk forever.”
Power Move #14: Keep Working, Even After Financial Success– Most of us continued working even after we amassed our wealth. The reason is to make our wealth last. Besides we enjoy working. When I did “retire”, I found that I was just completely bored, and the way I would entertain myself was to spend money. I need a day job to occupy my time.
Power Move #15: Seek Professional Advice, But Do Some Tasks Yourself– While consulting with a qualified professional is always a good idea, you don’t need to pay their high hourly rates for everything. I had a attorney search my trademark, but I filed it myself. Just like you had an agent incorporate your business, but you got the EIN from the IRS yourself (I did that off of instinct to be honest).
Power Move #16: Spend Prudently When Launching A Business– So many people have gotten themselves in trouble from spending so much money at the beginning. You always have to have cash flow to support your expenses. It’s not about cutting corners but it is about finding lower-cost ways to get essential things done, knowing every dollar counts, and not spending a disrespectful amount of money thinking the money will roll in soon. It doesn’t work that way.
Power Move #17: Spend With An Eye Toward Savings– A more expensive car has more expensive repairs. A more expensive house has a higher heating bill. I never enjoy something if I know it’s costing me a lot of money. Let the law of supply and demand work in your favor, by waiting to purchase certain consumer items when prices drop. I’ve never been driven to have the newest, biggest, best. You sit back and wait for those costs to come down.
Power Move #18: Don’t Spend Excessively On Luxuries– I don’t think success equates with your wardrobe. Lots of people will see great shoes or a handbag and think, “I need that.” But many millionaires steer clear of such purchases, even for work attire. I think you can look nice and professional without spending a lot of money on clothes.
Power Move #19: Incorporate Your Businesses– Incorporation creates a legal entity and limits your liability to the assets within each business. It separates your business from your personal assets. For example, I own a golf course. Heaven forbid someone should fall and sue us, the most someone could take is my golf course. (If you’re looking for a great service to incorporate your business, I personally recommend www.delawareinc.com)
Power Move #20: Be Financially Smart When Looking For A Life Partner- Sure, dating and perhaps marrying someone who loves extravagant vacations and shopping sprees can affect your ability to save, you also must consider your own patterns when you start a relationship. Do you spend too much on gifts and entertainment to win the potential mate? I call it “the love syndrome”. A lot of people give their money away when they fall in love.
These tips are a powerful way to start over for this new year coming up. Can you look at these power moves and figure out a way to incorporate them into your life? I would love to hear from you! Comment below and tell me what you think.
Also, if you wish to learn more on this subject, please refer to “Be A Millionaire Next Year: Strategies To Build Your Wealth Quickly and Permanently”. This book is HIGHLY recommended.