How Do Millionaires Think?

How Millionaires Think

Millionaires think differently than other people, which makes many people wonder what those differences are.

If you’ve ever wondered, “How do millionaires think,” you’re not alone!

Thinking like a millionaire could be the key to increasing your wealth, so finding out how to channel that thinking into your own life is a must!

Consider these eight factors to start thinking like a millionaire and channeling that mindset into increasing your family’s wealth.

how do millionaires think about money

This post may contain affiliate links, meaning if you make a purchase, I may earn a small commission, at no cost to you. Please read the disclosure for more information.

The Wealthy Have a Different Relationship with Money

One of the biggest things that separate millionaires from the middle class is how they think about money.

In fact, a millionaire’s relationship with money is vastly different than someone living a middle class lifestyle.

That means you’ll need to completely shift your way of thinking when it comes to money if you want to start putting yourself in a millionaire mindset.

There are a variety of ways wealthy people think differently when it comes to the concept of money, from thinking about how they spend their money to their relationship with the money they earn.

Try these money mindset shifts to start getting into a millionaire frame of mind:

Time does not equal money

So many of us are in the habit of trading our time for money.

Whether we earn an hourly wage or pay our service providers by the hour, paying for time is a common way of thinking.

think like the rich

But millionaires don’t see dollars in terms of hours. Instead, they see money as an asset that can be turned into more money through strategic investments and passive income opportunities.

Earning opportunities are everywhere

Since millionaires don’t see money as a trade-off for time, they think about earning in a vastly different way than most middle class people.

While you may see your job as the only way of earning money, millionaires see the opportunity to earn money everywhere.

When a millionaire comes across a problem or pain point, they see it as an opportunity to earn money by creating a product or service to solve that problem.

That means every issue they encounter becomes a potential way to earn more money.

Make money work for you

Poor people work for their money, but rich people put their money to work.

The longer you spend trading your time for money and putting work into getting a paycheck, the longer you’ll keep yourself from thinking like a millionaire.

Instead of thinking about money as something that is earned, start thinking about ways you can make your money work for you by investing in assets that earn passive income.

Always consider your ROI

Before you invest your time or money in anything, take a moment to consider your return on investment like a millionaire would.

Avoiding investments that don’t give you a return is the best way to start thinking more like a millionaire. That means analyzing each and every purchase or business endeavor to consider how that investment can help you earn more money in the future.

Related Article: All You Need To Know About The Rich Vs. Poor Mindset

Millionaires Stick to a Budget

When you think about the differences between rich and poor people, the concept of budgeting probably comes to mind.

When you consider who should be sticking to a budget – the poor person is probably your first answer.

But if you ask yourself who is more likely to actually stick to a budget, the answer is the rich person.

Wealthy people are far more likely to budget their money than those who are poor or middle class. And that act of budgeting is one of the reasons they have that extra wealth!

Budgeting is one of the best ways to ensure you aren’t living above your means, which means you’re spending more money than you’re bringing in. But in order to stick to a budget, you first need to create one.

how to think rich

So, to start living like a millionaire, you’ll need to take the time to lay out a budget for your family.

Follow these simple steps to create a budget:

Take a look at your income

The first step to creating a family budget is to add up all your income. This will help you determine how much you have to spend each month.

Add up your expenses

Next, take a good look at your past spending habits to see how much you’re spending each month.

After adding up the average amount of all your expenses, take a second to subtract your expenses from your income.

If the number is positive, you’re on track to living like a millionaire. But if that number is negative, you’ll need to take a look at your spending more closely.

Balance the budget

The key to creating a useful budget is balancing your spending and your income.

But that doesn’t mean you should spend all the money you bring in every month.

In addition to regular expenses, your budget should also include money put into savings and investments every month.

Adjust your spending as needed

Once you know how your income and spending measure up, it’s time to take a look at your expenses to see where you can start cutting.

Cutting back on your monthly spending will not only help you stay out of debt, but it will also help you find more money to put toward savings and investments that could add to your bottom line.

Related article: Budgeting Tips for Beginners and How To Easily Start A Budget

Millionaires Live a Frugal Lifestyle

While the common portrayal of a millionaire is someone who lives in a lavish mansion and drives fancy cars, the reality is that most millionaires got that way by living frugally.

That means that if you want to think like a millionaire, you need to get into a more frugal mindset.

There are a variety of simple ways you can start living like a millionaire simply by being more frugal. Consider these tips for saving money like a millionaire:

Buy used

Instead of purchasing a new car or pair of designer jeans, think like a millionaire and buy used instead.

Since most liabilities, such as these purchases, only depreciate in value, there’s no need to spend the extra money on new things.

Instead, save that money by purchasing used items and use the money you save to make an investment into your future.

Pay with cash

Avoid going into debt by paying with cash instead of credit.

Using cash can not only help you cut out interest payments on big purchases, it also helps you stay on budget by making it easier to know exactly how much money you have to spend at any given time.

do you have to be smart to be rich

Auto save each month

One of the best ways to ensure you’re setting aside money for savings and investments is to automatically transfer funds into your savings account when you get paid.

This will keep you from spending the money before you have a chance to set it aside, making it seem like that money was never even in your account in the first place.

Avoid eating out

Purchasing meals at restaurants is an expense that many millionaires skip.

Instead of heading out to eat, wealthy people often choose to cook at home to save money, allowing them to have more money to put towards their savings and retirement.

Keep a minimalist home

Minimalism is a great way to live a frugal lifestyle, and many millionaires say they keep their home simple to help them save money.

A simple home can help you avoid overspending on unnecessary items, like furniture and décor, and keep you from seeing large monthly utility bills, too.

Related Article: 17 Simple Tips to Become a Minimalist (perfect for beginners)

Wealthy People Stay Away from Debt

Debt is one of the fastest ways to reduce your wealth.

On top of spending more on your purchase by paying interest on your loan, debt also ensures you’re putting your money toward buying something instead of investing it to increase your wealth.

There are a variety of ways debt can impact your bottom line, which means there are several reasons to stay away from it at all costs.

Debt can encourage you to overspend

Credit cards are one of the worst offenders when it comes to overspending.

That’s because it’s easy to simply swipe a card and forget about how much you’re spending. And that ease makes it seem like you’re getting something for nothing.

But eventually, those payments will add up and soon, you’ll be putting all your extra cash toward debt payments instead of finding ways to invest your money to increase your wealth.

how the rich think

Debt comes at a price

Think about the amount of interest you pay each month when you’re only making the minimum payment on your debt.

Every month you hold debt, the more money you pay out of pocket toward that loan. And that means you’ll have less money to invest in assets that will make you more money.

Debt keeps you from reaching your financial goals

Every month you’re forced to make payments toward your debt is a month you have less money to put toward your goals.

In addition to keeping money tied up that can’t be used for investments, that money also can’t be spent on essentials, like food, or fun things, like a vacation.

Millionaires Find Ways to Increase Their Assets

Investing in assets is one of the best ways to build wealth, which is why millionaires are always on the hunt for their next investment.

And since there are a variety of different ways you can invest your money in assets that help you produce more and more money, thinking like a millionaire can help you compound your wealth by making smart investments.

As you begin to think about different ways to turn your money into an investment, consider the various options you have to choose from. These assets are a great choice for investing your money:


One of the most popular asset options to consider is investing in business.

Whether you invest in your own company or provide capital to a start-up, investing in a business can be a great idea – especially if you’re knowledgeable about the company and its finances.

millionaire's mind

Peer to peer lending

When using peer to peer lending as an investment strategy, you and other lenders essentially serve as a bank to someone who wants to borrow money.

In return for your investment, the borrower will pay you interest on your loan as they pay it back.


Government and corporate bonds are a safe investment option to consider if you’re more risk-adverse.

Bonds are promissory notes that are held for a set time-frame, usually one to five years, in which you invest your money and get a set return on your investment.


There are a variety of different ways to invest in the stock market, depending on how risk-adverse you are.

Index funds, for example, offer moderate returns for investors by providing you with a diverse investment portfolio that follows the flow of the market.

And investments in individual stocks can often provide a higher return, along with a higher risk.

Related Article: 13 Stock Investing Books for Beginners

If you don’t have time to read the whole article, here’s a video summary:

how millionaires think

Real estate

Putting your money into the real estate market is another common asset to consider.

Many millionaires earned their wealth through real estate investments, making it a popular option among the wealthy. You can purchase real estate and “flip” the property for immediate profit or invest in rental housing for an ongoing income.

Related Article: 10 Real Estate Investing Books for Beginners

Millionaires Avoid Liabilities

One of the most important distinctions millionaires make when deciding where they put their money is between assets and liabilities. Here’s all you need to know about the two investment opportunities:

  • Assets put money into your pocket.
  • Liabilities take money out of your pocket.

So, while putting your money into assets can help you earn money, liabilities always make you lose your investment. That’s why millionaires take every chance they can to avoid spending money on liabilities.

That means you need to take the time to shift your thinking about what it means to be wealthy.

While many see wealth as fancy cars, expensive clothes, and over the top décor, most millionaires avoid these purchases at all costs – especially when they’re in the wealth building stage.

Instead of putting your money into stuff, think like a millionaire and consider the best ways to make use of the money you have.

Anything you own that depreciates in value is typically considered a liability. That means it’s important to reconsider making liable purchases, including investing your money in:

  • Transportation, like cars, boats, and motorcycles
  • Electronics, like fancy cellphones, computers, and televisions
  • Furniture and other household items, like appliances
  • Clothing, jewelry, shoes, and accessories

Wealthy People Think About the Long Term

While many people live paycheck to paycheck, millionaires are more concerned about their financial future.

And not just next month or next year. Millionaires plan well into the future – five, ten, or even twenty years ahead.

Investing in the long term is one of the best ways to increase your wealth, which means you have to have the future in mind as you plan your investing strategy.

In addition to putting the time and effort into creating a plan for the future, millionaires also consider how their current actions can affect their future plans.

From being frugal from day to day to avoiding large liability purchases, thinking about how your purchase now can impact your future plans is a great way to start thinking like a millionaire.

Try these long-term planning tactics to start thinking more like a millionaire in your daily life:

Set long-term goals

Goal setting is one of the best ways to help you stay on track as you plan your future.

And that means incorporating long-term goals into your plan. Long-term goals can help you develop big-picture plans that force you to look beyond short-term thoughts and actions.

the mind of the millionaire

Delay gratification

One issue many middle class people grapple with is delayed gratification.

Instead of splurging on a big purchase now, think about how amazing it would be to build your wealth when you’re young so you can enjoy your money later on.

Millionaires use the concept of delayed gratification to help them see that creating future plans and delaying big purchases can actually give you more freedom in the long run.

Take time to visualize your future

Being stuck in the present makes it difficult to think long-term.

That’s why it’s important to set aside time each day or week to think about your future. Use this time to visualize what you want your future to look like and different ways you can make that visualization a reality.

Remove limitations

Often, when we start thinking long term, we place our present limitations into our thoughts and plans.

The key to thinking like a millionaire is to remove all your current constraints from your long-term plans.

Think about what you want your life to look like if you didn’t have to worry about money, fear, or other limiting beliefs that are holding you back.

Give yourself time

When you’re constantly thinking about the here and now, waiting for your long-term dreams to come true can be difficult.

Instead of waiting for instant gratification, make sure you understand that true success takes time. Long-term planning must be considered with the future (not the present) in mind in order to be helpful.

Re-evaluate and re-work your plans

It’s also important to know that none of your long-term plans have to be set in stone.

As you reframe your mindset and work toward your goals, you may see that your plans and dreams begin to evolve and change over time.

That’s why it’s essential that you take the time to check in with your goals on a regular basis and adjust your plans as needed.

Related: 8 Personal Finance Goal Examples You Can Achieve

Millionaires Never Stop Learning

From incorporating reading into their daily routine to listening to educational podcasts, taking the time to learn is an essential part of becoming a millionaire.

Understanding that your education doesn’t stop when you’re finished with school is the first step toward financial freedom.

And there are a variety of avenues you can take when investing in your education, like:

Financial literacy

The first step toward improving your financial future is learning all you can about finances.

From reading about investment strategies to understanding the importance of passive income, investing in your financial literacy is an important step toward thinking like a millionaire.

the wealthy mindset


Another important factor to consider when thinking about your educational future is ways you can improve yourself.

Inspirational books and self-help courses can be beneficial in reshaping your thinking and repositioning yourself to be more receptive to millionaire thought processes.

Career development

Whether you’re in a corporate career or just started your own business, investing in your career is another great way to ensure you stay on track.

Taking the time to enhance your current abilities or learn new skills can give you a chance to leverage your career to earn even more in the future.

You can even take a course from home using a platform like Skillshare, which has a lot of FREE courses available online.

There are a wide variety of topics. There’s likely a course available that’s applicable to your professional development.

There are also premium courses available at a cost. However, you can sign up here and get the first 2 months of Skillshare premium for FREE.

Learn by doing

Sometimes books and courses aren’t enough to take your education to the next level.

When thinking like a millionaire, you also need to use your own life experiences to inform your future. Taking action and diving into something new can be tremendously educational.

Make the most of mistakes

In many ways, you’re just like a millionaire.

You both have made plenty of mistakes in your past. But if you’re not using those mistakes as a learning experience, you’re not in a millionaire mindset.

Wealthy people use their past mistakes as a way to learn and grow to improve upon their next venture.

Getting a mentor

Another great way to invest in your future is to find a mentor. Seeing the value in someone else’s knowledge is a great way to get real-world experience through personalized lessons from an industry expert.

How to Get into the Millionaire Mindset

Now that you see how differently millionaires think, you may be wondering how you can apply these concepts to your own life.

The first step to thinking like a millionaire is to immerse yourself in the millionaire mindset. That means educating yourself on how different millionaires think.

Try these different methods for thinking more like a millionaire:

Read books about habits of millionaires

Reading is one of the best ways to learn something new, so finding books focused on the habits of millionaires is a great way to get started.

Look for educational books that outline the ways millionaires live, in addition to self-help books that help you start incorporating millionaire habits into your own life.

Related: Here’s a list of 13 books about the secret habits of millionaires.

wealthy mindset

Read biographies and autobiographies about millionaires

Think about some of your favorite millionaires, then look to see if there are books about them.

Taking a deep dive into the lives of millionaires can give you an inside look into how they live, what they do on a daily basis, and how their actions made them wealthy.

Watch interviews with millionaires

Reading isn’t the only way you can educate yourself about the millionaire lifestyle. Take some time to watch or listen to interviews with millionaires to get an insider’s perspective on their life.

Here’s an interview with the iconic Warren Buffet:

how millionaires think

Get a millionaire mentor

If you really want to learn about how a millionaire’s mind works, why not go straight to the source?

Seeking out a millionaire mentor is one of the best ways to start getting into a wealth mindset. Following the advice of a wealthy mentor could put you on the path towards wealth by putting you into your own millionaire mind frame.

Related Articles About How Millionaires Think:

Enjoyed this post?

It would be great if you could share it and follow me on Pinterest and Facebook.

how millionaires think

Do you have other tips on how millionaires think? Comment below.

Similar Posts

Leave a Reply

Your email address will not be published. Required fields are marked *