Want to be a millionaire?

Start thinking like one.

We know that this isn’t the only step stopping you from becoming a millionaire (the dollars in your bank account do need to be a part of the process), but after reading The Millionaire Next Door, we realised there are some simple mindset ideas we can incorporate into our own lives. We'll break down these key habits and strategies in the podcast and provide insights on how you can apply them to your own financial journey.

Habit 1: Living Below Your Means
It’s straight forward, but lots of people don’t do it - spend less than you earn consistently. A few weeks ago we talked about setting up a realistic budget, but it’s really the first step. If a budget is still too daunting, try tracking all your outgoings for one month, so you can review your costs and distinguish between essential expenses and discretionary spending. Focus on covering your needs before indulging in non-essential purchases.

Habit 2: Avoiding showy displays of wealth
The second habit is about avoiding the temptation to show off your wealth through extravagant purchases. It's about prioritizing financial independence over social status. Have a look over your spending habits from a regular month. Reflect on your purchases and evaluate whether they genuinely align with your financial goals or if they are driven by social pressure. Are you surprised by anything you’re spending money on?

Habit 3: Let your money work for you
Wealthy people make their money work for them, and the earlier you start adopting this, the earlier compounding can do its magic.
To adopt this habit: Set up an investment system! Automate your investments by setting up regular contributions to diversified, low-cost investment vehicles such as index funds or ETFs.Stay patient, because wealth accumulation takes time. Finally, continue to learn. Listen to podcasts, invest in your own learning, and stay informed about investment ideas.

Habit 4: Focusing on Earning More
Increasing your income is crucial to building wealth, but it’s probably the hardest thing to do. We’ll be digging into side hustles next week, but also think about whether you could be angling for a promotion, or upskilling at work.

It’s these four simple habits that are the backbone of Stanley’s book, and his argument for what will set you on the path to financial independence. Consistency, discipline, and patience are the things he said you need to achieve your financial goals.

3 books to put on hold this week…

We love recommending books as a way of learning more about investing! Here’s 3 we have reserved behind the desk.

1. The Barefoot Investor: The Only Money Guide You'll Ever Need by Scott Pape

   There’s a reason this is one of the most popular books ever sold in Australia. Scott Pape, known as the "Barefoot Investor," provides a comprehensive guide to managing your finances, eliminating debt, and building wealth. The book offers practical advice on budgeting, investing, and setting up a financial system that works for you.
   

2. Rich Dad Poor Dad by Robert T. Kiyosaki

   This is a classic personal finance book, where the author shares his experiences growing up with two very different father figures—one focused on traditional employment (the "Poor Dad") and the other on financial education and entrepreneurship (the "Rich Dad"). The YIGC team did an episode covering the book, but it offers lessons on financial literacy, assets vs. liabilities, and the importance of passive income.
   

3. Don’t Stress, Just Invest by Equity Mates 

   Uh, did you really think we’d give you a list of investing books and not include our own? We know investing doesn’t have to be hard and it doesn’t have to be time-consuming. If you’re keen to put your nose in a book, rather than listen to hours of podcast content 😂 then get your paws on this!

If you’re looking for other recommended reads from the Equity Mates team, check out our 7 favourite books here. Remember, if you’ve any questions, let us know at [email protected].

Happy investing!

Equity Mates