Becoming a millionaire doesn’t happen randomly or by accident, there are specific skills that enable millionaires to build their net worth.
A self-made millionaire is someone who has the skills to build a stock portfolio, real estate portfolio, crypto portfolio, or business that’s worth seven figures. This type of success doesn’t happen by accident and takes a combination of skills to achieve.
What skills do most millionaires have?
- People skills
- Know how to use leverage
- Time management
- Energy management
- Problem solving
- System thinking
- Money management
Millionaires know how to manage, motivate, and mentor people. Whether they build their own business, have a career as an executive, or work with partners they all know how to work with others to get results.
Know how to use leverage
They know how to leverage assets, time, and other people’s money to build and grow something of value. Leverage increases the speed and magnitude of wealth building.
Millionaires are great at both finding and picking their team, they know where to look for talent and skills. No one builds a million dollar net worth alone, everyone needs help with what they can’t do by their self and millionaires are good at finding those people.
To build a seven figure net worth you must be good at both valuing and managing your time wisely. Time is not a renewable resource so it must be invested wisely in the things that get results toward goals. Millionaires value their time and spend it with focus and don’t waste it.
A millionaire’s passion for their business gives them the energy to do what is needed to be done. They tend to focus their energy on doing the 20% of things that drive 80% of the returns approximately. Many will tend to do the highest value activities first thing in the morning when they are at peak energy and do less important tasks as the day goes on.
They are great at not only identifying problems but coming up with the solutions. Anyone can be a critic and point out what’s wrong, it takes skill to solve the problem.
Millionaires tend to create systematic processes for achieving their goals. They think in terms of how things fit inside their process and make course corrections to return to the right path for systematically achieving their goals. Everything is thought of in the context of their overall system.
Running a business is the process of creating and managing cash flow. The millionaires that own businesses must manage their balance sheet to be able to make payroll, keep the supply chain flowing, and keep the lights on. Millionaires that focus on building their own net worth must manage their personal finance expenditures versus income to grow their seven figure net worth.
Understanding how to manage a budget, how to read a profit and loss statement, and basic accounting are crucial skills for all would be millionaires to master.
Millionaires have the patience to keep working and waiting on results. They don’t try to get rich quick they try to get rich and stay rich the right way whatever time it takes. Impatience can lead to excessive risk taking and errors in judgments in trying to speed up results.
Millionaires tend to be life long learners, always reading new books, talking to people in their industry, and staying in contact with their mentor. They are open-minded to learning new things and keeping up with technology and new ways of optimizing processes. They are not stagnant, they are always seeking to improve their self and their business.
The one thing that all millionaires have in common is that they didn’t quit. All millionaires kept working, kept trying new things, and adjusted their course until they achieved their seven figure net worth. Not giving up is an underrated skill in the financial world. The grit to keep going is the one skill that each millionaire must have.
How can I become a millionaire?
The key to becoming a millionaire is creating a million dollars in value for investors and customers. Being a millionaire is based on net worth in the value of your assets, not usually having a million dollars of cash in the bank.
If you build a business worth a million dollars based on the valuation of its cash flow and own 100% of it, then you are a millionaire. If you own a 50% share of a business worth $2 million then that would also make you a millionaire. Building assets worth $1,000,000 is the way to become a millionaire, this can be in a business, stock portfolio, intellectual property, or real estate.
It’s interesting to note that it takes skills to not only become a millionaire but also skills to stay a millionaire. Once you have achieved this level of wealth it must then be maintained through proper business management and risk management. Businesses can stop being profitable and time and trends can change the valuations of your assets, millionaires must stay vigilant to maintain their edge.
Many lottery winners discover that if they can’t manage their new found wealth it will end up with those who can manage it. Money flows away from those that waste it and to those that create value with it. Becoming a millionaire is one job, and staying a millionaire is another job.
What skills can make me a billionaire?
The skills that make people billionaires show a clear pattern among the majority of people with over a billion dollar net worth. These skills are very specific.
- Ability to find a business from scratch and scale it.
- The skill to take your business public.
- The investing knowledge to hold a large share of equity in your company after it goes public.
- The leadership to be the CEO of the company and build into into a large cap corporation.
- Keeping the majority of your net worth in your company until your shares are worth over one billion dollars.
This is the path of the most self-made billionaires.