Why a Millionaire Always Thinks Long Term

By Charles Hopkins Published 09/19/2006 | Entrepreneur

When you are a self-made millionaire, having spent years working to bring together that one idea, innovation or invention that you hoped would be the one to lead to success and the financial dream of being a millionaire, you learn to look at projects as long-term money making possibilities. You learn that quick schemes do not take you anywhere. Its the projects that require commitment, organizing and hard work that are the ones that really pay off. Thats not to say that the millionaire entrepreneur wont jump at the opportunity to try something innovative, just that they seem to realize that short-term returns are less likely to pay off big than the long-term projects.

The millionaire who has invested their funds wisely also sees the long-term as a way to increase their wealth. Many have bought real estate when the market turned down, renovated and then rented as they await the time when the real estate market comes alive again to reap huge profits when their properties are sold. This is not a quick turn around, but a long-term investment project that generates money as it goes, at least enough to pay the mortgage costs, while waiting for the economy to change just enough for housing prices to become higher. This is a pattern that has repeated itself and will continue to, for years. Only someone with long-term thinking can invest his or her money this way.

Millionaires often have a business or a corporation, which they manage, to keep all their projects under one umbrella. There is no point in setting up such an endeavor unless you see a long-term use for it.  Building a company, getting investors, directors and employees is a process that you do not commit to unless you can see the long-term use of such an extensive network. Someone who has the foresight to see what can be done with this network, can plan the projects, stimulate the workers into action and continue to plow their money back into the business that can make them money is the exact nature of the average self-made millionaire.

Get rich quick schemes are often no more than that; schemes. If there were so many ways to get rich quick, wed all be millionaires. Those self-made millionaires will look at various ways to make money, analyzing options that may come by their desks. But they will also be aware, from the experiences that made them the money they now have, that a project that is over fast will likely have smaller returns and that these lesser profits are not worth the time it will take to generate them if the long-term projects generate proportionately more.

A self-made millionaire looks ahead to see where they are going to place their money to generate more. This is not to say that the millionaire who inherits their money is not a good businessperson. But being someone who has come into their money, the structures are already in place and so they may approach the growing of their finds in different ways.