7 Essential Habits of Women Who Made Their First Million Before 40

The success stories of many accomplished women often seem like fairy tales, where all the magic happens overnight. However, when these wealthy entrepreneurs share their beginnings, it becomes clear that success is the result of hard work and healthy habits cultivated over the years. Here are seven essential habits of women who made their first million before turning 40.

1. Money Isn’t Everything

According to women who achieved financial success before 40, the first and most crucial rule is not to focus solely on money. Passion should drive your endeavors, no matter how clichéd it may sound. For instance, Lisa Cloud, a sales director, designer, and author who made her first fortune at 35, shares her perspective:

Money was part of a larger goal. Initially, I had to answer a more complex question: what is my calling? I didn’t focus solely on money because I was thinking about my vision, how to help people, and I believed that everything else would follow.

Laura Itkin, the founder of The Options Lady, had a different goal:

Since childhood, I watched my mother’s financial dependence on men and the problems it caused. Therefore, my main goal was not wealth per se, but financial independence.

2. Know Your Weaknesses

Sophia Amoruso, the creator of the Nasty Gal brand, emphasizes the importance of self-awareness. It’s crucial to believe in yourself and recognize your strengths, but it’s equally important to be honest about your weaknesses. In business, this honesty is vital because ambitions can often blind us.

During interviews, potential employees often avoid admitting their real weaknesses, saying things like, ‘I’m a perfectionist.’ I look for people who do their jobs well but understand where their work might falter. When building a business, it’s essential to analyze your weaknesses to anticipate and solve potential problems.

3. Don’t Fear Investing

Wealthy individuals share a common trait: they invest. Wealth is built not through saving or spending on luxuries, but through smart investments. This requires a specific mindset that not everyone possesses. To start, think of investments as a way to secure your future.

Laura Itkin began her business by investing the only $1,600 she had, inherited from her mother, into developing a local store.

That investment was the best decision I ever made. I realized that relying on an employer’s salary wasn’t the way to go. Instead of making my life slightly more comfortable, I invested that money in my future. But saving alone isn’t enough. Once you’ve saved a certain amount, you need to invest it. Don’t be afraid to diversify your investments across different sectors, not just entrepreneurship. Consider real estate, commodities, precious metals, or anything else.

4. Don’t Overestimate Your Capabilities

Learning while working isn’t always beneficial because it can distract from your primary focus. If you aim to continue your education, obtain another degree, or invest in skill enhancement, consider what Itkin calls the ‘opportunity cost.’ Education isn’t free.

If education might jeopardize your job and income but offers future financial prospects, it’s worth it. However, if you won’t have time for work, you risk falling into debt. Don’t overestimate your capabilities; weigh whether the expenses are worth the lost time.

5. Reduce Your Needs

Wealthy people don’t buy everything they desire, indulging in luxury. The cornerstone of their success is the ability to live simply. Instead of purchasing a Hermès scarf, an expensive car, or visiting beauty salons, reconsider your needs. You don’t have to buy clothes from expensive brands, and a car might not be an immediate necessity. You can even dye your hair at home. Instead of unnecessary expenses, invest your money to double your wealth.

If you have a personal business, you’ll likely need to change your lifestyle. Celebrate your victories by allowing yourself to spend $20,000 if you’ve earned $100,000. Another crucial point, according to Itkin, is not to use business funds for personal needs. This is the first step towards bankruptcy, proven by personal experience.

6. Take Calculated Risks

Risk is inevitable in business, but it must be taken wisely. Lisa Cloud notes that the main problem for entrepreneurs is the lack of strategy and a clear action plan. You can’t just close your eyes and take a risk.

Many people blindly take risks without a strategy, initial capital, savings, or a goal. Naturally, they face failure. I always advise business owners to have not only an action plan but also an exit strategy for risky situations. Sometimes, this means having an additional source of income. I did this for many years.

Itkin advises staying pragmatic and loving the wild ride called business. Big money always comes with the risk of losing it, but if you start a business, you should enjoy the constant ups and downs, understand that you’re creating something new, know why you’re doing it, and relish the process.

7. Never Stop Growing

The most dangerous thing for a wealthy person is to become a prisoner of their own ego and stop developing. A remarkable trait of all successful women is that they never stop learning and thinking about the next step, says Lisa Cloud.

Don’t rest on your laurels. If you’ve managed to start a business and make a lot of money, think about what project you’ll launch next. Having multiple businesses isn’t just about ambition; it’s also a great backup plan if one of them doesn’t last.

For further reading, check out this article on success.