Top four secrets of becoming a millionaire

1) Live below your means

Being a cheapass is what this comes down to. If you are spending more than you make how will you ever be able to save up and become wealthy?

2)Avoid the status lifestyle and purchasing status objects

Purchasing brand name or luxury cars is always a bad idea. When people think of millionaires they think of people driving ferraris and wearing rolexes. Most millionaires don't live this type of lifestyle.

3) Take risks if the return is worth the reward

I am not talking about investing in stocks. Millionaires buy businesses and invest in venture capital. They also don't speculate or gamble. You see, the only people making money in the stock market are the insiders. If you are not an insider and you are trading stocks you will have a difficult time making any real value. One good example of this is Warren Buffet. When Buffet invests in a company he doesn't just buy 10-15% of the company he buys a huge stake in the company so he can have a significant impact on the decisions of the company. He also looks for good management. He does this because he knows for a fact that the managers are insiders who will make or break the company. Most small time investors who invest in the stock market are actually speculating. They invest in a security hoping it will go up without really understanding the whole picture.

4) Millionaires teach their kids about money.

This one often doesn't get mentioned often. Millionaires will teach their kids at a young age how to budget, invest and manage their money. This is very important because people who are not millionaires often avoid these types of skills and their kids end up having to use their parents money.