The Millionaire Next Door
I’m currently re-reading The Millionaire Next Door. I had read it back in 2000 after my wipe-out in the stock market. Its good to re-read books every so often so the salient points stick in your mind. Especially the points in this book.
Most millionaires are extremely frugal. They don’t waste money on luxury cars or fancy stuff, nor do they feel the need to impress others about their wealth. This is an especially important thing to remember especially considering that Black Friday is tomorrow and Walmart’s selling a 42 inch plasma for $997.00. Thats an unbelievably low price and if I was in the market for a TV I’d definitely get it. However, once I get that, I’ll probably feel the need to get digital cable which is a waste of money and of course time. The goal is to simplify life and get out of the consumerism mentality. Thats how average people making ordinary salaries become millionaires.
A very high percentage of millionaires are self-employed and own a small business. That makes sense, since the self-employed have many more ways to save money on taxes than regular W2 income people.
They also didn’t get much financial help from their parents. Gifting money to kids after they graduate and helping them buy a house creates an economic dependance and is detrimental to the parents financial well-being. Parents of financially independent kids are more likely to be millionaires themselves.
The most important thing for a millionaire is financial independance. Most millionaires can survive for over a decade just on the cash they have without any additional capital input.
Basically attaining millionaire status is part of your mental attitude. If you can modify it so that you save a portion of your salary & learn how to invest it, you’ll become a millionaire.
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