1. They’re not impulsive.

How many times have you made an impulse decision while at the grocery store? Or how about when you are on Amazon?

It’s common for most of people to make a few impulsive decisions when making purchases. Millionaires, however, have the ability to delay gratification and hold back on making impulsive decisions.

2. Know the difference between wants and needs.

Millionaires also know the difference between wants and needs. We all have moments when we would like a new house, pair of shoes, car, or office.

But, are they necessary? Or, do you just want that new luxury car? Sure that car is powerful and would great in your driveway. But, it’s not a necessity.

Instead of spending money on things that aren’t practical, millionaires put that money towards essential items that will continue to increase their wealth.

3. Focus on the long term.

As Timothy Sykes, the Penny Stock Millionaire, says in Entrepreneur,

“Long-term goals take a minimum of one to five years to accomplish. Long-term goals are excellent motivators. They enable you to look beyond the moment and put into perspective why you are spending your time today as you are.”

Your daily tasks should connect to your long-term goals, and if they do not, your goals need to be adjusted in some way.

The adjustment may be altering your tasks in some way, or possibly cutting out or reducing non-essential tasks and adding some task that will benefit you in the future.

4. Have multiple sources of income.

After establishing some financial security, millionaires begin to look for other ways to bring in money. Why? Because they realize that their main source of income could suddenly dry-up.

To avoid a possible loss of revenue, a millionaire will establish multiple sources of income that generate cash flow as a backup plan.

Melanie Hapisu: Why adaptability is an essential business strategy

5. Automate investments

There are robo advisors and other ways to automate investments, such as deducting percentage of your paycheck and placing it into a e-cash retirement account, but millionaires also invest so frequently that it’s becomes a habit.

They know how and when to take advantage of an opportunity, as well as how much to invest, seemingly without blinking an eye.

But they have practiced this investment strategy often enough that they gain a definite knowledge about investment workings.

6. Follow a budget

By following a budget, millionaires can see how much money is coming in and how much is going out.

This allows them to create a spending plan so that they can afford the necessities and remove wasteful expenses.

There has been at least one study that says many wealthy people do not have a budget, per se, but the very wealthy know, and keep track of where their money is being spent.

7. Are prepared for emergencies.

Millionaires have a rainy-day fund set aside. They realize that there may be time when they’ll have a crisis, like losing their job or an unexpected family death.

Instead of borrowing money, they have the money saved up to support themselves until the crisis is over. Many disasters can be averted by being prepared with an emergency fund.

I personally recommend that you have 12 months cash sitting in the bank so that if all shiz hit the fan, you’re good.

8. Only invest what in what they understand.

Warren Buffett and the legendary stock investor Peter Lynch have offered the advice that you should “invest in what you know.”

It’s a trick that millionaires have embraced because when they understand how a company generates income and profitability, they have a competitive edge.

They’re aware of the risks and opportunities.

9. Keep track of expenses.

Do you know how much money you’re spending on your expenses? If you don’t, start tracking your daily, monthly, and yearly expenses – just like millionaires do.

You’ll quickly realize that you’re wasting money on items that aren’t needed or can be purchased at a better rate.

10. Live below their means.

It’s no secret that wealthy individuals live either below or within their means. For example, Warren Buffett still lives in his Omaha, Nebraska home that he purchased in 1958 for just $31,500.

Former Microsoft CEO Steve Ballmer was known to fly commercial. Even though they could have owned a mansion or private jet, they opted to save their money for necessities and not luxury items.

11. Run the numbers before making a decision.

I’m not talking about doing mathematical equations that you did back in your trigonometry class. Just basic addition, subtraction, multiplication, and division before making any financial decisions.

For example, if you have an older vehicle that needs some repairs, a millionaire would compare the costs of repairing the car to purchasing a new vehicle. Then, the decision will be based on whatever’s more cost-effective.