KEY POINTS

  • National Be a Millionaire Day is observed on May 20 every year to celebrate the idea of being a millionaire
  • Financial planners have shared some tips self-made millionaires follow to build their wealth
  • Millionaires usually invest their money regularly and do not spend much time watching TV or browsing the internet, they said

It's National Be a Millionaire Day 2021! This day encourages people to do things that make them feel like a million bucks and reminds them to act and think in the way those who are millionaires did to reach their financial goals.

To celebrate National Be a Millionaire Day this Thursday, check out these seven tips self-made millionaires have used and find out how they succeeded in building their net worth, courtesy of CNBC, Fast Company and Business Insider:

They invest

Faron Daugs, a wealth advisor and certified financial planner, said he teaches his clients to take on the habit of setting up a monthly or bi-monthly automatic transfer of cash toward an investment account.

“Most of my clients do not miss having that money in their ‘cash flow’ and then they can use those invested savings for future car purchases, vacations or other short- or long-term goals, without incurring additional debt,” Daugs said.

The CFP also emphasized the importance of saving ideally 20% of one's income each month that should go to savings, emergency funds, investments and retirement funds.

They don't try to keep up with the Joneses

It's easy for a person to lose themselves when following trends. Forcing one's present lifestyle to live up to society's standards will only lead to debt, according to Daugs, as living beyond one's means rarely ends well.

“Fight the need to have the latest and greatest gadgets,” he said. “So much money is wasted on constant ‘upgrades’ these days and can cost you both money and lost opportunity.”

They start saving up for college very early

Self-made millionaires start saving money for their children's education very early on. The long-term benefits of saving ahead of time are endless and save them from a massive financial burden in the future.

“By getting started early, you can save a significant amount of money in future cash flow and tax savings,” Daugs said. “It does not take a lot to get started, but the power of compound returns can be so beneficial to you if you have time.”

They save 10-20% of their monthly income

"The self-made millionaires in my study all set a goal of saving 10 to 20% of their income during their pre-millionaire years," said Thomas C. Corley, a certified public accountant and financial planner.

According to Corley's book, "Change Your Habits, Change Your Life," multiple commonalities exist between millionaires, and one of them is that they save a good chunk of their pay.

They seek advice

A person must be kept in the loop when it comes to how their money is being dealt with. Everyone should have a basic understanding of their earnings and investments, according to Daugs.

“Your advisor should be both a partner and educator for you," he said.

They avoid debt

Eliminating, or at least reducing, debt is a major money-saving tip Daugs' clients use. Since credit cards are known to charge high interest, it is important to pay to settle these balances as soon as possible.

“If you want to build wealth, you cannot waste money on paying interest on consumer credit, such as credit cards and even car loans,” Daugs said.

They avoid wasting time

Corley said millionaires would rather lose money than waste time.

“When we invest our time in anything, it’s lost forever,” he explained. “Yet, because we are all given what seems to be an abundance of time, it has very little value to us.”

According to Corley’s study, 67% of self-made millionaires watch less than an hour of television per day, while 63% spend less than an hour each day watching YouTube videos and doing other activities on the internet. Corley said this allowed them to have more time to “pursue their dreams, goals, read, learn, exercise, volunteer and network.”

Bitcoin, US dollar, Euro coin and money representation As a visual representation of the digital Cryptocurrency, Bitcoin with US Dollar, Euro Coins on November 9, 2017 in Hong Kong, Hong Kong. Cryptocurrencies - Bitcoin, have seen unprecedented growth in 2017. Photo: Getty Images/studioEAST