Who Wants to Be a Millionaire?

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Third age has a series of interesting personal finance quizzes that range from determining your investing IQ to Do you have the millionaire personality?

First, I’ll cover the millionaire quiz because investing is closely related to the correct millionaire mindset. The quiz, Do You Have the Millionaire Personality?, will reveal some insight on how your personal decisions effect your future.

I took the millionaire quiz, and scored fairly well on it. Many of the questions really make you think, “there is a vast difference between the millionaire mindset and average employee mindset.” Millionaires embrace financial growth through fearless actions and simple habits. They let money work for them, and continue to build their net worth. On the other hand, the average employee has gotten accustomed to working for money and piling up debt.

Take this example, Joe works 40 hours a week, and gets paid for his time at the office. When Joe leaves the office, he does not earn income. Thus Joe is in the habit of working for money, assuming he has no secondary sources of income. If Joe were a millionaire, he would have his money working for him. This attribute separates the millionaire from the average Joe (no pun intended).

Now, Robert works 40 hours a week as well, but also invests in mutual funds and holds 7 stocks in his portfolio. When Robert leaves the office, his primary source of income halts, but he continues to make money through his investments. Because of global time differences, Robert’s stocks and mutual funds are making money 24/7 – during after-hours and foreign market fund trading. Robert thinks like a millionaire would. See the difference?

The point is to diversify your income sources if you want to be a millionaire someday. Don’t put all your eggs in one basket if you can afford to. By adding domestic and foreign investments to your portfolio, you earn supplemental growth and income on top of your day job. And if you’re already self-employed, then Congratulations! You’re well on your way to a million dollars and financial freedom.

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