Millionaire Habits You Should Be Doing Now

Summary

Rachel Cruze shares millionaire habits in a candid talk, focusing on sustainable wealth-building practices. She emphasizes the importance of maintaining a modest lifestyle, strategic spending, and setting financial goals. Cruze discusses the pitfalls of purchasing new cars due to depreciation and advocates for investing 15% of income post-debt and emergency fund establishment. Through personal anecdotes, Cruze highlights the long-term benefits of these habits and stresses the importance of contentment and generosity in achieving financial success.

Highlights

• Millionaires often maintain a stable lifestyle, avoiding major lifestyle inflation. 🏖️
• Planning and budgeting are crucial for financial success. 📊
• Invest wisely to let your money grow over time. 🌱
• Avoid buying new cars to sidestep rapid depreciation. 🚙
• Contentment and generosity help sustain a millionaire lifestyle. 🎉

Key Takeaways

• Maintain a modest lifestyle to build long-term wealth. 🏡
• Plan your purchases and stick to a budget like millionaires do. 📅
• Invest 15% of your income wisely after clearing debt. 📈
• Buy used cars to avoid depreciation costs. 🚗
• Contentment and generosity are key traits of happy millionaires. 🤗

Overview

Ever thought about living the millionaire lifestyle? Rachel Cruze dishes out some practical habits that can set you on that golden path. It's not just about raking in the cash but managing it smartly. She charmingly busts the myths around flaunting wealth and instead advocates for a sustainable financial lifestyle.

Keep the bling at bay! Cruze highlights the importance of not getting carried away with lifestyle inflation. She urges us to budget smartly, set achievable financial goals, and to consider the compounded benefits of wise investments. Don't be swayed by the allure of shiny new cars, she warns, as their value drops faster than you'd expect.

Generosity and contentment aren't just nice traits; they're millionaire habits according to Cruze. Her insights delve into why happiness often accompanies wealth and how these traits play a pivotal role in reaching financial freedom. It’s less about hoarding wealth and more about cultivating a fulfilling, balanced life.

Chapters

• 00:00 - 00:30: Introduction to Millionaire Habits The introduction chapter focuses on the idea of adopting habits that millionaires employ to manage wealth effectively. It emphasizes that while money isn’t everything, handling it wisely can be rewarding by enhancing enjoyment and wealth building. The goal is to encourage these habits to provide financial and lifestyle benefits.
• 00:30 - 01:00: Living Like No One Else The chapter emphasizes the mantra 'live like no one else so later you can live and give like no one else,' highlighting the importance of debt freedom and lifestyle sacrifice for long-term financial stability. It suggests adopting habits that can help one achieve a millionaire status. It notes that sustainable millionaires often maintain modest lifestyles rather than dramatically increasing their spending, countering the stereotypical image of lavish wealth.
• 01:00 - 01:30: Lifestyle Maintenance In the chapter titled "Lifestyle Maintenance," the focus is on the contrast between a perceived extravagant lifestyle and the reality for many millionaires who choose to maintain a modest lifestyle. The key takeaway is the importance of keeping one's lifestyle relatively consistent, even as financial status improves, such as getting out of debt. Incremental lifestyle enhancements can provide significant comfort and a sense of financial security. The chapter emphasizes the value of spending wisely and making thoughtful decisions about lifestyle upgrades to enjoy financial relaxation without overspending.
• 01:30 - 02:00: Spending Wisely and Budgeting The chapter discusses the importance of planning and budgeting when it comes to spending, emphasizing that wealth accumulation over time is often a result of deliberate financial planning. It highlights that wealthy individuals often have a budget and plan their purchases, suggesting that becoming wealthy isn’t something that just happens overnight. Instead, it requires specific habits and goal setting, such as being meticulous about where money is spent, to avoid living paycheck to paycheck or falling into debt. The chapter stresses maintaining these financial habits even after achieving significant wealth.
• 02:00 - 02:30: Goal Setting The chapter discusses the importance of goal setting in financial planning. It emphasizes the need for setting monthly, yearly, and even 5 to 10-year goals to achieve desired financial outcomes. By setting goals, individuals and couples can identify necessary sacrifices and plan effectively to reach their financial numbers and life aspirations. The chapter underscores that planning and having defined goals are crucial for long-term success.
• 02:30 - 03:00: Smart Car Purchases The chapter titled 'Smart Car Purchases' discusses the financial wisdom of buying used cars instead of new ones. It references 'The Millionaire Next Door,' noting that millionaires often drive cars that are at least two years old, avoiding rapid depreciation. New cars lose 60% of their value within the first four years. The general advice is to buy used cars unless you have a significant net worth, as doing so is a financially savvy decision. The speaker shares a personal anecdote about purchasing a used car that was new to them but was actually a 2009 model, emphasizing the value of buying used.
• 03:00 - 04:00: Investing for Growth In the chapter titled 'Investing for Growth', the focus is on growing your wealth through smart investment strategies. The discussion advocates for purchasing used cars to avoid depreciation loss and emphasizes the importance of investing 15% of your income into retirement. This strategy is to be implemented once you are free of debt and have a fully funded emergency fund. The power of compound interest is highlighted as a significant factor in wealth growth.
• 04:00 - 05:00: Contentment and Generosity The chapter discusses the concept of letting money work for itself over time to build wealth. It highlights how many people achieve financial success by consistently investing small amounts rather than spending on immediate desires such as vacations. The narrator shares a personal anecdote about contemplating spending instead of investing, only to realize the long-term benefits of continuing to invest despite short-term temptations. This reflection underscores the challenge of prioritizing future financial security over present-day spending, emphasizing the importance of maintaining discipline in financial planning.
• 05:00 - 05:30: Promoting the Book and Conclusion The chapter discusses the future financial prospects and lifestyle desires of the speaker, contemplating how their spending habits and preferences will evolve over the next 30 years. It also touches on the common stereotype of wealthy individuals being unhappy. Contrary to this stereotype, the speaker argues that many wealthy people they know are, in fact, content and happy with their lives.

Millionaire Habits You Should Be Doing Now Transcription

• 00:00 - 00:30 Well, you know what would be cool? If we were all millionaires. That'd be pretty awesome. Well, here are some millionaire habits that you can implement [Music] today. So, I know not everything in life is about money and becoming rich and wealthy and whatever, but listen, that is part of the reward if you handle your money wisely that you get to enjoy some of it and you get to build wealth. And that's my goal for you. It's not the only goal in life for you. So don't
• 00:30 - 01:00 think I'm like some shallow crazy person. We like to say around here if you live like no one else. Meaning like you get out of debt, you sacrifice your lifestyle later. You get to live and give like no one else. So here are a couple of habits that you can implement today to start looking towards your millionaire status. So a lot of millionaires, if you talk to them, ones that have wealth and that actually keep it over a long period of time, you'll see that they actually don't increase their lifestyle a lot. Yes, every now and then they'll probably bump it up a little bit. But when you think of millionaires, you may think of like
• 01:00 - 01:30 mansions and Ferraris and designer bags and like this big flash lifestyle. A lot of people that are millionaire status, meaning their net worth is a million dollars, their lifestyle doesn't change much. And so the idea of keeping a similar lifestyle is great. And even just notching up your lifestyle, you know, one or two percentage points as you get out of debt and that kind of thing, that can do a lot for you. That can really loosen up your budget and you can really feel the relaxation of life by just doing that. So don't feel like you have to go crazy with your lifestyle. Also, part of that is spending wisely, which means think
• 01:30 - 02:00 before you spend. People that are wealthy, again, over a long period of time, they think about purchases and they plan for them. Most people that are wealthy, they plan, which means that they have a budget. Yes, back to the budget. If you think that you're going to just wake up one day, oh wow, I have a million dollar net worth. That was pretty cool. That's not going to happen. If anything, oh wow, I'm living paycheck to paycheck and broke and in debt. How did that happen? So being very very specific with where your money goes, keeping that as a habit even into millionaire status is a great one. Part of that as well is having goals and
• 02:00 - 02:30 sticking to them. So having monthly goals, which is your monthly budget, having even yearly goals of, hey, this is what we want our year to look like. And then Winston and I have even started doing five to 10 year goals and saying, hey, 38 almost 40, what do we want? What do we want our life to look like? Even financially, you know, what do we want our number to be? And then from there, you can really back out and start looking saying, "Okay, if we make sacrifices today, we're doing that to get to here." But you're planning and having goals. So goal setting is key. Also, a big purchase that a lot of people mess up on in life in general
• 02:30 - 03:00 that millionaires don't is purchasing a car. The average millionaire, according to the book The Millionaire Next Door, drives a 2-year-old or older car. Guys, that's crazy. Did you know that new cars lose 60% of their value in the first four years? Yeah. Now, if you have a million dollar net worth right now, it's kind of my go to say yes, you can go buy a new car. You can take the, you know, the depreciation of what happens that hits. But everyone else, hey guys, let's just buy used cars. It's amazing getting a used car. Winston, I bought a new car. I guess probably about 2 years ago, and it's a 2009, I think, and I'm not a car
• 03:00 - 03:30 person, so you car people probably think I'm crazy, but I got in it. I was like, smells great. It looks clean. Like, it feels like a new car. It really does. It's crazy. let someone else take that hit and drive a used car like the average millionaire. Also, investing. We want your money to grow. Grow. Let your money grow. And so, part of that is investing 15% of your income into retirement. And that is after you're debtree and you have a fully funded emergency fund. With investing, it's amazing again with compound interest and
• 03:30 - 04:00 really letting your money work for itself as it's just sitting there over a long period of time. It's how a lot of people gain wealth and you're just putting in a little bit. And this is a hard one. And it's a hard one for me because today there's so many things that I want to do. There's like great vacations and all of this. And I may or may not have said to Winston, "But what if we just didn't invest for a year and we took that money and and he looked at me like I was crazy." And I was like, "Oh my gosh, I take it back. I take it back. No, no, no. We're going to invest. I promise." It's even hard for me. Oh my gosh, it just seems so far away when we can actually use that money. But I look at myself now, I'm like, Rachel is a spender today at my age. I know Rachel
• 04:00 - 04:30 at 60 is going to be a much bigger spender and probably want a lot nicer things than Rachel today. Future Rachel is going to have to look back on the www.worldwide web to find this video and think myself here in about 30 years. And last but not least, a lot of people who are wealthy really are content and happy people. And again, kind of this cliche thing is like, oh well, greedy rich people, they're all miserable. Not necessarily. A lot of wealthy people I know are very happy and content because
• 04:30 - 05:00 they're givers. They enjoy what they're doing in life. And so it's amazing, you know, just those qualities in people's life that they really are content and being content is partly how they got to be millionaires because they were okay with their lifestyle where they were before. This whole idea of of being content and happiness and generosity really flows through a habit of becoming a millionaire. And also other money habits that you can implement are the seven money habits I talk about in my new book, Love Your Life, Not Theirs. And it's actually there's a great bundle out right now with the book and my clip system, the wallet, which will help you
• 05:00 - 05:30 budget, plan, stay on track, to be a millionaire. Make sure to check out that bundle. You can click the link below to check that out. And again, let's all create good money habits for today and the future millionaires that we're going to be. Hey YouTube, thanks for watching you guys. You're so loyal. You watch so many videos. So, I hope you watch this next one that's about to come up.