Why “Becoming A Millionaire” Is A Bad Idea



Why “Becoming a Millionaire” Is a Bad Idea

By Greg Habstritt

Having been involved in the personal development and personal investment training industries for many years, there is one particular question that can be asked of an audience that garners the most enthusiastic – and consistent – response to any question I can ask.

When asked why they are attending a seminar or training program, the single most common answer provided is that they’re looking for “financial freedom.” That’s usually quickly followed by the plan to “become a millionaire.”

While on the surface this seems to be a great goal to have, the problem is that it’s a myth – and by chasing financial freedom, it’s likely they’ll never achieve any freedom at all.

Most people believe that financial freedom is the answer to their problems or that, if only they were millionaires, they’d no longer have the financial challenges they’re dealing with today. In other words, they desire the money itself as the destination, as opposed to the understanding and experience that allows them to attract that wealth to begin with!

You can see this in action by turning the television on after midnight and watching some of the commercials that play. Marketers have figured out how to push the right buttons, and the emphasis is clearly placed on what the money will buy and the problems it will solve once you purchase their home study kit or training program.

Most people are rational enough to understand that getting rich can’t be as simple as ordering a $40 product from the television – yet, this is a multi-billion dollar business, and the messages are compelling.

Example after example is trotted out to demonstrate that anyone can do it, and the emphasis on “fast” and “easy” is unmistakable. The case is built up that it must work, otherwise how they could make the claims they do? The images of mansions and yachts, couples walking on the beach without a care in the world – who doesn’t want that kind of life?

But here’s the problem I’ve uncovered. While most people will say they want financial freedom, when asked specifically what that looks like, the vast majority of those same people cannot tell you what financial freedom actually is in measurable terms!

They’ve been sold the idea that, once you achieve a certain amount of money, money pressures and problems magically go away. Unfortunately, this isn’t reality, and there isn’t a magic figure that you can achieve to eliminate the pressures and challenges in your life.

30 years ago being a millionaire actually meant something – but in today’s dollars that millionaire would only be worth $156,000 – a long way from the level at which most people would consider their financial worries a thing of the past!

The measure of being a millionaire is an arbitrary concept that doesn’t really have any value to the enlightened investor. Besides, what does millionaire mean?

Does it mean one million dollars, cash, sitting in the bank?

Does it mean one million dollars of net equity in the assets you own?

Does it mean generating a million dollars of cash flow per year from your investments?

As you can see, most people focus on using a goal like becoming a millionaire without ever defining what that is actually going to mean to them!

The greatest lesson I learned in creating wealth and becoming financially free is to very clearly and carefully define what it looks like to you. How are you going to know that you’ve achieved financial freedom when that day arrives?

My personal definition of financial freedom is “the ability to do anything I want without being restricted by money.” And for anyone who adopts this definition, the actual amount of money required to achieve this is going to be radically different.

The point here is to recognize first what it is you want your life to look like and then to determine what financial level you need to achieve in order to serve that vision. You may find, when you define your financial freedom, that you need much less than a million dollars – or you may find that you need many times that amount!

The words we use are very powerful, and I teach the important concept that you need to carefully choose the words you use. Words matter. So when you’re dreaming of the future, deciding what your life is going to look like, be careful using words like financial freedom or millionaire until you’ve carefully thought through what they mean to you.

Don’t use materialistic or financial measures to determine your level of success! Get very clear on what your life looks like when you become successful. For example, instead of working towards the label of millionaire, think about working towards the ability to spend as much time with your family as you wish – because you’ve taken care of your financial obligations.

This explains why some multi-millionaires never achieve happiness or success, while many people who are of modest means and income are much happier with their lives. It’s because they’ve gotten clear on what success looks like, instead of being concerned about achieving some arbitrary financial goal that really has no meaning in the end.

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About the Author: Greg Habstritt is the founder and president of SimpleWealth and the Real Equity Group of Companies. With more than 20 years of entrepreneurial and investment experience, Greg has founded, built and sold more than a dozen companies; become a millionaire with 4 different businesses, each in a different industry; and received numerous awards, including Young Entrepreneur of the Year. SimpleWealth is presenting the upcoming Engage Today event. Also a gifted speaker and trainer, Greg teaches others how to create wealth for themselves. He can be reached at greg@, or see his Web site .

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