All millionaires are different. Different backgrounds. Different preferences.
You get the idea, we’re all unique.
But if there’s one thing most millionaires have in common, it’s their primary investment levers. These levers systematically build wealth, and they’re what make them millionaires.
So today, let’s talk about these levers and how they work.
And I promise you: THEY WORK.
The 3 Investment Levers of Millionaires
99% of millionaires focus on these three investment levers:
Lever #1: Retirement investments
Retirement investments are easy in the United States. The traditional 401(k) (or solo 401(k) if you are self-employed) and Roth IRA are prime long-term investment vehicles. They grow over time, so you have a huge nest egg to enjoy when you retire.
Use your employer’s payroll system to handle all this for you. Select the amount you want to contribute, sign on the dotted line, and that’s it.
Though loopholes exist to withdraw your retirement investments before retirement age, never do that unless it’s your last resort.
Lever #2: Shorter-term/passion investments
This is where things get fun and interesting, and there’s a slew of different ways millionaires invest beyond retirement investments.
My favorite is opening a Vanguard brokerage account and picking a targeted retirement account, index funds, or ETFs. Then, set up an automatic bank transfer to send money into these investments monthly.
It couldn’t be easier.
Others choose to invest in real estate; some are landlords, and others prefer a hands-off approach and use REITs. REITs are great options for real estate investing, and here’s how they work.
Level #3: Self-care investments
Not all investing is strictly about the money. Millionaires understand that their money is no good if they aren’t continuously improving themselves.
Here are five great ways to invest in yourself:
- Education and Skill Development: Taking courses, attending workshops and conferences, or pursuing higher education can help you acquire new skills, expand your knowledge base, and improve your career prospects.
- Physical Health: Prioritizing physical health through regular exercise, proper nutrition, and adequate sleep can improve overall well-being, increase energy levels, and enhance productivity.
- Mental and Emotional Well-being: Investing in mental health through meditation, mindfulness, therapy, or counseling can help manage stress, improve resilience, and build a positive mindset.
- Self-Care and Relaxation: Self-care activities, practicing relaxation techniques, or taking regular breaks can help you recharge, reduce stress, and maintain a healthy work-life balance.
- Networking and Relationship Building: Building and maintaining a strong professional network can open doors to new opportunities, collaborations, and mentorship, which can be invaluable for personal and professional growth.
These levers work for a reason. Millionaires use them. You should, too.
