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9 Money Rules To Go From Broke to Multimillionaire, According to Dan Martell

Updated: 27-10-2024, 07.01 PM

Today, Dan Martell is known as a serial entrepreneur who coaches over 1,000 business owners, but he wasn’t always on track to make multimillions.

At 17, he was arrested and later went to rehab, where he turned his failures into personal growth and success. He taught himself to code and launched tech businesses, earning his first million at 27.

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Along his journey, he learned nine money rules that helped him go from broke to multimillionaire and recently shared his tips on YouTube.

According to Martell, here’s how the top 1% of wealthy people think about money, and how you can as well.

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The first rule the entrepreneur learned is that your wage doesn’t make you rich; spending habits do.

“A long time ago, my dad said this: It’s not how much money you make; it’s what you keep. 33% of millionaires never earned more than 100,000 a year it meant they knew how to invest their money.”

After a financial mistake at 21, Martell walked away from the experience, understanding that to make money, he had to live on a small percentage of his income and not above his means — which meant driving a 12-year-old car even though he made millions a year.

To maximize your income, live on the smallest amount of money possible and invest.

“You can’t save yourself to wealth, but you can spend yourself there either,” he noted.

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Martell lives on 10% of his income, and while that might not be possible at the start of building wealth, that’s the goal to work towards. Living on a small portion of your income frees up funds to invest.

“Learn to live off very little and start accumulating. Then decide at what level you’re going to start investing in other things,” he said.

Martell said his third money rule is “controversial” but believes that “broke people” make a living just to buy things, while the middle class earns money to “get loans to buy things,” and the rich invest in things that generate an income.

“Some of you guys are like one inch away from opportunities that could actually make you money to cover the payment on something, but instead you take that money and you put it into a depreciating asset,” he said.

Instead of working more to maintain your lifestyle, invest in yourself and learn new skills that will earn you more money or pick up a side hustle and use that extra money to invest.

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