10 Money Mistakes Millionaires Don’t Make

Matt Chan • September 18, 2018

So you want to be a millionaire.

Sigh, don’t we all. 

It might feel like a lofty goal but it turns out the underlying principles millionaires follow when it comes to their money are pretty basic. Some of them are downright boring. But they obviously work, so let’s have a look and see what we can learn.

Here’s the 10 money mistakes millionaires don’t make! (say that 5 times fast…)

1. Getting emotional over financial decisions.

Millionaires are cold hearted. The end.

Kidding! I’m kidding…

It’s not that millionaires don’t have emotions when it comes to their finances, they just know how to separate the two. How? By making a plan and automating their money.

Yup, super boring. They take the time to set up a plan for their money—by paying themselves first and automating their savings, investments, and bill payments—so they don’t have to spend time thinking about those things day to day. Having a plan is also what keeps them from freaking out and making irrational decisions  when a bear market hits. 

Millionaires know their time and energy is limited and better used elsewhere. 

2. Thinking of themselves as rich.

Wait a minute, if you’re rich isn’t this the point?

Most millionaires—at least the ones that stay millionaires—don’t walk around thinking they’re rich and can afford anything and everything. They know there are trade offs and are frugal in many areas of their lives. Just because they can afford the most expensive car or bottle of wine doesn’t mean they’ll buy it. 

They’re clear on their priorities. They spend in the areas that matter to them and cut costs in the areas that don’t.

3. Focusing on cost over value.

Speaking of frugality… this one’s important. Millionaires don’t get hung up on the cost of something, instead they focus on value. They think long term. 

They’d rather spend a little more upfront now to buy something they won’t have to replace in a few years time. They have a sense of when things are over or under priced and buy accordingly.

Millionaires still love getting a deal like everyone else. 

4. Thinking your salary is the only way to get rich.

Your salary isn’t the be all end all to building wealth. 

Millionaires have multiple income streams. They don’t expect to make their millions from one day job, they understand the importance of diversification and have set up multiple ways to make money. Both active, through a job or businesses, and passive, through  the stock market. 

They’re always on the lookout for opportunities and know a salary is just one piece of the puzzle. 

5. Not setting goals.

No eye rolling! Goal setting is incredibly powerful. If you’re dreaming of something that feels impossible or crazy that’s all the more reason to make it a goal. 

Be specific and write it down. Your goal might feel like a longshot but breaking it into measurable steps—a plan—roots it in reality. 

Putting a plan on it is the difference between a wish and a goal. 

6. Getting hung up on timing.

Millionaires know it’s about time, not timing. 

When it comes to investing they know focusing on timing is a waste of energy. They don’t try to time the market or pick stocks, they focus on long term strategies that ride out the ups and downs. 

They know it’s better to have time on your side and that’s why they start investing early. Once again, boring wins. 

7. Thinking wealth is a zero sum game.

You earning more doesn’t mean someone else has to earn less. 

Millionaires tend to have an abundance mindset, they see how finding a way to help more people helps them make more money, and that having more money in turn allows them to help more people. 

Look at famous millionaires you know… how did they make their money? By creating a product or service that was valuable to a lot of people. 

So it’s not about taking away from the pie, it’s about making the pie bigger. 

8. Only looking for ways to save money.

Millionaires can be frugal but they know getting ahead isn’t just about finding ways to cut costs, it’s about finding ways to earn more. 

This one also comes down to the difference between an abundance and scarcity mindset—if they want more money for something millionaires will look for a way to make more money to pay for it rather than solely seeing what other areas they can trim back on. 

Millionaires don’t view money as finite resource, they look for opportunities to make more. 

9. Hiding from their problems. 

When it comes to their money millionaires know how they make it and how they spend it. 

They aren’t ones to bury their heads in the sand. At least not the ones that want to  stay  millionaires. They want to know exactly what’s happening with their money, the good and the bad, because you can only solve problems if you know they exist.

Once you acknowledge something’s not working you can take steps to improve it—and this goes for a lot more than your money. 

10. Thinking it’s about luck.

Short of winning the lottery, millionaires know making and keeping money doesn’t come down to luck. 

Instead of looking at someone with a successful business and thinking,  “They’re just lucky… I could never do that!” they ask, “How did they do that? How can I do that?” They’re curious and want to know how things work so they can put it into practice themselves. 

Millionaires know their wealth isn’t accidental. Their financial success is built on a series of purposeful choices and habits—ones we can all learn something from.

 

 

This article was written by Kate Smalley of Nest Wealth, it was originally published here on July 28, 2017.

 
CONTACT

Share

RECENT POSTS

By Matthew Chan • October 7, 2026
What Lenders Mean by “Good Credit” When You Apply for a Mortgage Credit is simply the ability to borrow money today based on the trust that you’ll repay it in the future. When you apply for a mortgage, lenders want proof that you’ve consistently honoured that trust by managing credit responsibly. But what does a good credit history actually look like to a lender? The 2 / 2 / 2 Rule Explained If you’re newer to credit or want a simple way to remember minimum mortgage credit requirements, think of the 2 / 2 / 2 rule: 2 active trade lines Established for at least 2 years With a minimum combined limit of $2,000 This is a common baseline lenders use when assessing credit for mortgage financing. What Counts as a Trade Line? A trade line is any account where credit is extended to you, such as: A credit card A line of credit A car loan A personal or installment loan Each trade line reports your payment history to the credit bureau and contributes to your credit score. For a trade line to be considered active , it must: Have been used at least once, and Show activity at least once every three months Why Time Matters Lenders want to see that you’ve managed credit responsibly over time , not just recently. Using two trade lines consistently for at least two years helps demonstrate stable financial habits and reliability. Understanding Credit Limits vs. Balances The credit limit is what matters—not the balance. For example: A $1,000 credit card + a $2,500 line of credit = $3,500 total limit This meets the minimum requirement You do not need to carry a balance to build credit. In fact, the best approach is to: Use your credit regularly Pay it off in full each month (for credit cards) Make all loan payments on time If your lender offers a credit limit increase and you’re managing credit well, it’s often a good idea to accept it. Higher limits—used responsibly—can strengthen your credit profile. A Simple Way to Build Credit Automatically One effective strategy is to: Put recurring bills on your credit card Set up an automatic transfer to pay the balance in full every month Automation helps build positive credit history without requiring constant attention—just be sure to monitor your accounts to ensure everything runs smoothly. What About Credit Scores? Yes, credit scores matter—but they’re not the whole story. If you: Have two active trade lines Established for two years With at least $2,000 in total limits And no missed payments …your credit score will generally take care of itself. That said, it’s still wise to review your credit report occasionally to check for errors or unfamiliar accounts. Final Thoughts If you’re thinking about buying a home in the next couple of years, now is the perfect time to review your credit and make sure you’re on track. Small adjustments today can make a big difference when it’s time to apply for a mortgage. If you’d like help reviewing your credit or understanding how it affects your mortgage options, feel free to connect anytime. I’d be happy to walk through it with you and help you plan with confidence.
By Matthew Chan • September 30, 2026
Can’t Find the Right Home After You’re Pre-Approved? There’s Another Option The best place to start any home purchase is with a mortgage pre-approval. It gives you clarity around your budget and lets you shop with confidence. But what happens when you’ve been pre-approved, you know where you want to live—and nothing suitable fits your price range? This is a common challenge, especially for first-time homebuyers. Before buyer fatigue sets in, it may be worth considering a different approach: buying a home that needs work and financing the renovations as part of your mortgage . What Is a Purchase Plus Improvements Mortgage? A purchase plus improvements program allows you to buy a property and include the cost of approved renovations directly in your mortgage. This can be a great solution if: You can’t find a move-in-ready home within budget You’re open to renovations You want to customize the home from the start It opens up more options and can help you get into a location or property that would otherwise be out of reach. How the Process Works While the idea is straightforward, the process itself is structured and requires planning. Here’s a high-level overview: Renovation quotes are required upfront You’ll need detailed quotes for the work you want completed before final mortgage approval. Renovations must add value The lender must be satisfied that the improvements will increase the property’s value accordingly. Funds are reimbursed, not advanced You pay for the renovations initially. Once the work is completed and verified by an appraiser, the lender reimburses you and adds the cost to your mortgage. With the right guidance, this process is very manageable—but it’s important to understand the steps before committing. Is This Program Right for You? Purchase plus improvements isn’t for everyone. Buying a home is already a big undertaking, and adding renovations can increase stress—especially if timelines, budgets, or contractors become challenging. That said, if you’re financially prepared and like the idea of shaping the home to fit your needs, this program can be an excellent way to get more value and flexibility from your purchase. Final Thoughts If you’re struggling to find the right home after being pre-approved, you may not need to lower your expectations—you may just need a different strategy. If you’d like to explore whether a purchase plus improvements mortgage makes sense for you, feel free to connect. I’d be happy to walk you through the process and outline exactly what this option would look like in your situation.
By Matthew Chan • September 23, 2026
Missed a Credit Card or Line of Credit Payment? Here’s What to Do If you’ve missed a payment on a credit card or line of credit and you’re worried about how it might affect your credit—or your future mortgage—this is for you. First things first: 👉 If you currently have an overdue balance, log in and make the minimum payment now. Seriously. Do that first. Everything else can wait. If You’re Only a Few Days Late Here’s the good news: Credit bureaus don’t record late payments until they reach 30 days past due. So if you missed a due date by a few days and paid it as soon as you noticed, it typically won’t show up on your credit report as a late payment—as long as you’re under the 30-day mark. That said, it never hurts to double-check. You can call your credit card company, explain what happened, and confirm the account is back in good standing. If you normally pay on time, they may even reverse the interest charged. It doesn’t hurt to ask. If You’re 30, 60, or 90 Days Behind If payments have gone past 30 days, your credit has likely been impacted—but the situation is still fixable. The most important step is to: Bring all accounts current as soon as possible Make at least the minimum payment on every account The faster you catch up, the more you limit the damage. Ignoring missed payments only makes things worse. If Cash Flow Is Tight If you’re struggling to make payments, communication matters. Contact your lender and keep them informed—even if you can’t pay right away. Lenders are far more willing to work with you when you’re transparent. What hurts your credit most is silence . If lenders don’t hear from you after repeated missed payments, they may write the balance off as bad debt and send it to collections. Collections can significantly impact your credit and stay on your report for years. How This Affects Mortgage Qualification Repeated missed payments can make qualifying for a mortgage more difficult—but timing matters. Once you’re back to making regular, on-time payments: Your credit can improve over time The impact of past mistakes becomes less significant If you’re planning to buy a home in the next couple of years, addressing credit issues early gives you far more options later. Final Thoughts Missing a payment doesn’t mean you’re “bad with money,” and it doesn’t mean homeownership is off the table. What matters most is how quickly you respond and how consistent you are going forward . If you’d like help reviewing your credit report or understanding where you stand from a mortgage perspective, feel free to connect. I’d be happy to walk through it with you and help you create a clear path forward.