🌼Wealth Is Created from Income, Not “Millionaire Habits” SEE HOW
## How to spot financial bull$hit in 5 seconds or less
Part of the value proposition of Making of a Millionaire is to filter out [financial bull$hit](https://benlefort.substack.com/s/calling-financial-bullhit) from your financial media diet.
[In a past article](https://benlefort.substack.com/p/detecting-bullhit-is-a-financial), I reviewed a research study that provided a helpful definition of financial bullshit
> ” Seemingly impressive verbal, financial assertions that are presented as true and meaningful but are actually meaningless”.
Learn MoreRead also: 5 ways to develop an Unshakable Belief in Yourself
# Many “millionaire habits” are financial bullshit
I recently came across a Tweet from a financial planner that really struck a chord with me:
In another tweet, they made clear that the “millionaire habits” referred to are the ones you’ll see from a lot of self-improvement bloggers:
– Getting up at 4 AM
– Reading 2 hours per day
– Meditating
– Eating an “insert latest trend” diet
– Exercising at a particular time of day
– Ditching friends that don’t meet your definition of “success”
The list goes on and on….
We’ve all seen headlines where these types of habits are associated with famous rich people.
Take this BS headline as an example:
Insert a famously wealthy person, tease their daily “routine for success,” and imply you can achieve similar levels of success through a “success routine,” and you have the chef’s kiss of financial bullshit.
As Jamie points out in their Tweet, taking a cold shower at 4 AM won’t help you build wealth if you’re making $35,000 per year.
Some of these habits might help you “feel good” (and some won’t)-but they won’t make you rich.
# Building wealth explained in one sentence
To build wealth, you must increase the gap between your income and your living expenses, invest the difference and wait for compound interest to work its magic.
**It all starts with income.**
I don’t care how many Warren Buffett biographies you read while meditating about your plant-based diet at 4 AM after your ice-cold shower; if you make $3,000 per month and rent is $1,700; you aren’t going to become a millionaire anytime soon.
Personal finance writers talk about frugality as a path to wealth, but here’s an uncomfortable truth:
> **_Frugality helps those with a solid income build wealth._**
> **_Frugality helps those with a low income to scrape by._**
> **_When it comes to building wealth, it all starts with income._**
# A solid income + actually useful “habits” + patience = wealth
Step 1, focus on income.
Once your income is comfortably above your cost of living, then and only then can you implement certain “habits” to become a millionaire.
By “habits,” I just mean following the basics of personal finance.
– [Tracking your spending — and cutting the fat.](https://benlefort.substack.com/p/chapter-2-how-to-track-where-your?r=r7ti9&s=w&utm_campaign=post&utm_medium=web)
– [Creating a budget, you’ll actually stick to.](https://benlefort.substack.com/p/chapter-10-the-goals-based-budget?r=r7ti9&s=w&utm_campaign=post&utm_medium=web)
– [Building an emergency fund.](https://benlefort.substack.com/p/chapter-4-how-much-money-should-you?r=r7ti9&s=w&utm_campaign=post&utm_medium=web)
– [Paying off debt.](https://benlefort.substack.com/p/chapter-7-everything-you-need-to?r=r7ti9&s=w&utm_campaign=post&utm_medium=web)
– [Investing — through low-cost index funds.](https://benlefort.substack.com/s/the-rational-investor)
– [Avoiding lifestyle inflation.](https://benlefort.substack.com/p/chapter-17-if-you-want-financial?r=r7ti9&s=w&utm_campaign=post&utm_medium=web)
– [Building multiple streams of income](https://benlefort.substack.com/p/chapter-12-you-need-exactly-2-income?r=r7ti9&s=w&utm_campaign=post&utm_medium=web).
– Automating your finances.
Read also: 4 habits of determined people Yiu need to adopt to achieve your goals
– Being patient.
These are the habits that those with a solid income can follow to build wealth and eventually become a millionaire.
What you’ll notice about all of these “habits” is that they aren’t really habits at all. They are individual components of a well-coordinated financial plan to build wealth.
The best part?
None of these actions require you to try and live up to some impossible standard. If you automate $1,000 to move from your checking account to your retirement account each month, it does not matter if you get up at 4 AM or 8 AM.
Focus on increasing your income, build a financial plan, automate it as much as possible, and get on with living the life you want to live.
Contributed by Ben Le Fort
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