What’s the difference between making a million dollars a year versus 10 million or 100 million, or even a billion dollars? These numbers are so large that their full value is difficult to grasp.
However, the differences in attitude to money and life between millionaires and billionaires are valuable tips for anyone, regardless of their current income.
To understand the change that happens in mindset between millionaires and billionaires, we need to look at these facts first. To put it in context, consider that one million seconds amount to 11.5 days, while one billion total 31.5 years!. A billionaire could give his or her wealth away and make 1,000 new millionaires overnight.
The Shift In Mindset
According to CNBC, there are 2200 billionaires on the planet, and most of them gained their fortune from entrepreneurial endeavors. When they first become millionaires, they try to avoid spending their money on unnecessary expenses, making it even easier for them to increase their wealth.
An extreme example of a successful entrepreneur is Warren Buffett, who still lives in the house he bought for $30,000 in 1958 in Omaha, Nebraska.
This attitude to living within their means is contrary to most millionaire lottery winners who tend to spend their money lavishly and lose their wealth quickly.
In addition to how they spend money, rich people like to solve problems. The more money they have, the bigger the problem solved.
Self-made millionaire Steve Siebold interviewed over 1,200 of the world’s wealthiest people and wrote How Rich People Think. He found that rich people have an action mentality and are problem solvers.
They don’t pray for prosperity, they don’t wait for their lucky numbers to come up for something they want to happen. They see a problem and they solve it, and it’s not because they are smarter than the average person.
They are strategic in how they approach situations. When most people don’t have the money for something, they think they can’t afford it and stop there. When rich people need money for something, they look for solutions to the problems.
The bigger the solution, the more money to be made.
Watch this video about Millionaires Vs. Billionaires – The Shocking Difference In Mindset
Create A Big Impact With Your Business
One of my mentors, Dan Peña, says that the difference between millionaires and billionaires is in the mindset and the mechanics. First, if you’re an entrepreneur, you need to be the first to come up with an idea or service.
If you’re not first, then you have to be different, and if your idea can change a billion lives, like Facebook did, you could be a billionaire.
Most people don’t understand that just because they come up with an idea doesn’t mean anyone else is going to like it. They haven’t done any testing, on say, focus groups. They haven’t done their due diligence beyond their spouse, their cousin, or their mom likes their idea.
So you need to do something that is big enough to impact millions, even billions of people’s lives. Healthcare and telecommunications for example. Health care is 20 percent of the gross national product in America and people don’t want to die so they’ll spend whatever it takes to keep healthy.
In telecommunications, there is a new internet product every single day. We have Google, social media tools and the hottest thing on the planet… cybersecurity.
For my mentor, Dan Peña, his vision years ago was to make enough money to be a lifestyle entrepreneur. He wanted to live the laptop lifestyle. He was just focused on making millions.
Over time, his thinking shifted, and he’s focusing less on how much he’s making and more on what he’s doing to impact more people. When you focus on impacting people, the money just comes rolling in.
How Billionaires Are Made
Of the 2,153 billionaires on Forbes’ 2019 list of the world’s richest, 71 are under the age of 40.
More than half are self-made billionaires. Of these young entrepreneurs, “30 minted a fortune in the tech industry, followed by 7in fashion & retail and 7 in real estate.”
All of these young billionaires are men except for Kylie Jenner, founder of Kylie Cosmetics, who is the youngest self-made billionaire ever, as well as 14 female billionaires who inherited their fortunes.
These youngest billionaires from around the world are worth a collective $299 billion.
Final Thoughts: Tips About Mindset, Money and Life From Billionaires
A billion may seem like an unreachable number to most people. But there is a shift in mindset that happens when you go from millionaire to billionaire, and it’s that shift that we can all learn from.
They stop focusing on the money and more on how they can impact people. They are problem solvers who aren’t limited by what they can and can’t afford. If they don’t have the money for something, they figure out a way to make it happen.
And when entrepreneurs become self-made billionaires, they tend to work on growing their money, not spending it on lavish things. Regardless of your income level, this focus on action and abundance is an attitude we can all have toward life.
How do you want to impact or help those in your life? Comment below.