Pattie Lovett-Reid

Chief Financial Commentator, CTV

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Unless you inherit money, it is very difficult to become a millionaire. There is nothing automatic about achieving this level of wealth, and those who have seem to have a very different money mindset and tend to follow a few guiding principles.

Here are a few of them.

1. Millionaires always have a plan, but more importantly, they work the plan and will tweak it as life dictates. Life will throw you curve balls when you least expect it but the savvy millionaire takes action and corrects course immediately.

2.They are always disciplined and surround themselves with the “A” team. They will ensure they have the right people guiding them, they trust and respect their advisors and they never abdicate entire financial responsibility to anyone. They are active participants in building their financial plan and never wing it.

3. Conduct a review of their net worth statement every six months. The purpose is to highlight areas to advance their financial position even if that means maintaining the status quo. They always know where they stand financially with razor sharp precision.

4. Wealthy people recognize they don’t have to have the best of everything. They are very clear on where to spend their money to get the biggest bang for their buck.

5. No pension plan – no problem. Wealthy people look for ways to create cash flow through annuities, rental or investment income.

And finally, if there is one mantra I’ve heard time and again from those who are very wealthy it is: You create wealth not by how much you make but by how little you spend. Bottom line is you should always spend less than you earn.

You may not be a millionaire, but that shouldn’t stop you from having a millionaire mentality.