The Myths of Becoming a Millionaire & How to Build Wealth | Chris Hogan EP 322

0:00Hi, my name is Lewis Howes and welcome to the Daily Motivation Show.

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1:12We'll talk about these myths about millionaires. What are some of the myths that surround millionaires? Well, we talk about six in the book, but I'll tell you two. Most people believe they inherited it all, right? You see somebody with money, you think, oh, mom or dad handed it to them. The truth is 79 % of the millionaires that I talked to, first generation wealth builders. They didn't come from anything. These are people that focused and built money over time. Next myth. Well, if you're a millionaire, you make a high paying job, right? You got big income. Yeah, yeah. Nope. A third of the millionaires that we talked to never made six figures in a single working year.

1:45Really? Think about that for a second. Dual income never made six figures. So that blows that myth out of the water. A third of the millionaires that we talk to. Wow. Right? Now, you think about six figures nowadays. It's more prevalent than it's ever been. A lot of people with six-figure salaries have nothing in the bank because they just spend it all. That's exactly right. And they're using credit constantly to buy bigger things. That's right. No, no, you're absolutely right. So what happens is people tend to think that income is so important. And I'll tell you, no, it's not. Because I was one of those people.

2:16I remember I was making about 30 grand. And I thought, all right, when I get serious, one year out of grad school, making 30, 40 grand. I say, all right, when I make this amount, I'll start to get serious about my money. Well, you know that path, right? Well, when I make this amount, the next thing you know, lifestyle grows and you never end up taking control. But these are regular everyday people that took control and were focused. Wealth building is a long-term view, right? Not a quick hit. And so these get-rich-quick schemes that we see on TV at late night, they get me riled up because they're preying on people.

2:45But these people were people that built wealth over time, investing in their 401K, their 403Bs. The American dream is not dead. It's alive and it's well, and it's available to people. We just have to take action. 97 % of the millionaires that we studied feel that they control their own destiny. Now think about that for a minute, because we have a victim mentality issue in America today, where we want to blame somebody for us not achieving something or getting in our way. So these millionaires think differently. 94 % of them live on less than they make. So that means if they're making$100 ,000, they're living on$70 ,000 or$80 ,000, right?

3:19You can't build wealth if you live on more than you may. That's exactly right. And that's where the credit cards people start extending themselves and using credit cards. But 73 % of these millionaires never carried a dime of credit card debt. Interest that you pay is a penalty, right? If I use someone else's money, they charge me, right? That's a penalty. Interest that I earn on my investments is a reward, right? So why choose to penalize yourself? Don't use debt. Get yourself out of debt and invest and grow your money to reward yourself. Getting rich is where you want to quickly get money, right?

3:49And these are the lottery winners that I've talked to. They got money in really, really quick, but they also lost it really, really quick. So building wealth is a long-term view, meaning you can have some fun and enjoy some stuff, but don't get so focused in the enjoying that you forget to plan for the future. I want people to have just awareness. Like you can have some fun today, but let's also make sure we're doing some things, using the 401ks, using SEPs if you're self-employed. Put some money aside so it can start to grow for you. Talking to these millionaires, the number one thing they said that caused them to build wealth was employer-sponsored retirement plans.

4:23401ks, 403bs, and Roth IRAs. So people out there that are self-employed, the SEPs, solo 401ks. You've got ways to be able to invest. And that's what I want people to do.

4:35Isolating is dangerous. It's good to reach out and get help. It's good to have people you can be real with. I came to this realization. We need four people in our lives. You need a mentor. This is somebody that's having some success and can guide you. You need a coach who will push you, right? You and I know we're coach means something to us, right? Because they will get on you. They will drive you because what's the goal to try to help you to get better? But you need two more. You need a cheerleader. You need somebody that believes in you. They're not worried about what you achieve. They believe in you.

5:05And that's important to have. And then you need a friend. You need somebody you can be real with that. You can just say what's on your head. They're not holding it against you. You can be honest. So if you get a mentor, a coach, a cheerleader, and a friend in your side, that's awesome. But I want to encourage people to do this. Not only find those four, you need to be one of those four for someone else. You need to be four of those things. Is that what you're saying? That's right. You need to be a mentor. You need to be a coach. Yes. A friend. Yes. And a cheerleader. Absolutely. For someone else.

5:32For somebody. And when you do that, now what it does is it takes the focus off of you. I firmly believe that if you've ever walked through a mess in your life, that it qualifies you to be a messenger. It does. You know, when you've gone through some stuff, you learn. That's right. And if you're willing enough to be transparent to share it and you're not worried about people's opinions, the impact you can have on someone else to give them the courage to try or to reach out and talk. That's a big deal, man. This life is hard. It's not meant to be done alone. What is it that people say you can't do?

6:02Oh, man. I've had people tell me I couldn't write a book. You know, my first book came out in 2016, Retire Inspired. A good buddy of mine, I told him I was working on a book. He goes, man, you can't write a book. Really? Then later on, when I finished the book and at the book signing in town, he was one of the people there. And I realized something. What initially he said was that I can't write a book. What he was saying was it's not something he's ever thought about doing. And it's not something that he could do. It's his beliefs. That was him, right? And so for me, that was a grow up moment.

6:31He wasn't putting a limitation on me. He was speaking his own limitation, right? And so I just remember that and I go, oh, no, limitations. And so that's where I said, I'll accept compliments from anyone, but I ain't accepting limitations from nobody, right? And that's anywhere in my life. You don't get to put a limit on me. That's what I love about, you know, Dr. Martin Luther King. The fact that he had the courage to have a dream, but the courage to share it, you know, that's something I want us all to have that mindset of. Stop thinking about what people say you can't do. You know, I mean, opinions are like yesterday's.

7:02Everybody's got them. What are you deciding in your heart to go do? Now start to go do that.

7:17Thank you so much for listening to today's episode of The Daily Motivation, and I hope you have an amazing rest of your day. If you enjoyed this episode, make sure to click the link in the description. That will take you to the full episode of our main podcast on The School of Greatness. And if you are loving The Daily Motivation, please follow us over on Apple Podcasts and Spotify and leave us a review over on Apple podcast right now. And if you want more exclusive content and ad free listening experience, make sure to subscribe to our greatness plus channel on Apple podcast right now. And if you want to get even more inspiration from our world-class guests and learn how to improve your life and take it to the next level, then make sure to sign up for the greatness newsletter and get it delivered right to your inbox over at greatness.com slash newsletter.

8:07Again, have an amazing day and I'll see you tomorrow with another episode of the Daily Motivation Show.