A lot of people think that becoming a millionaire and billionaire like dangote , bill gates , otedola is simply a matter of coming up with a great business idea or working your way to the top of a fortune 500 company. What they don’t realize is that many people who earn upwards of 100k per year are still living paycheck to paycheck.
The road to financial independence is not based entirely on your income, it has more to do with how you think about money. There are four key components to the millionaire mindset. Mastering them isn’t guaranteed to make you rich, but it is certainly going to get you on the right path.
Top 4 Ways to Think Like a Millionaire
1. Learn the Difference Between Assets and Liabilities
We all know the traditional definition of assets. Things like homes, investments, and cash all add a nice big plus sign to your net worth. However, an asset is not just something that has value. It’s something that adds value.
Let’s say, for example, you want to buy a car. The car certainly has value, but it will not add a single dollar to your net worth. In fact, it’s going to cost you money. Every month you’ll have to pay for gas and insurance. The car’s value will depreciate as it ages, it’s value decreases every single day that you own it. This makes the car a liability.
If you were a taxi driver, the car would be an asset as it makes you money every day. But for the average consumer, a car is often nothing more than a money pit. Thinking this way will remind you to spend your money only on things that will help you grow financially.
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