There are so many misconceptions about millionaires. If you haven’t read The Millionaire Next Door, you are missing out on some great insights into the lives of ‘secret’ millionaires. There is a big difference between the people that like to flaunt their money and those that like to truly live life for themselves and really know the value of a dollar.
Here are my top 5 favorite characteristics of millionaires ‘next door’:
- They live on less than they make.
- They live in simple houses.
- They drive older cars.
- They have multiple streams of income.
- Their target is financial freedom and security.
These characteristics of millionaires are actually not much different from any of us. They are just more thoughtful about money – how they earn money, how they spend money, and how they save and invest money. It’s easy to get in over your head when a financial emergency strikes, however, when you adhere to the simple habits above, you can easily gain a sense of financial security. Often that also leads individuals to obtain financial independence as well… and possibly be the millionaire next door.
It is often difficult to tell a lot about a person by how they act in public. As the saying goes, “don’t judge a book by its cover,” the same is true for people. If you see someone with a nice, expensive car, a big house, and children going to private school, we usually assume they have lots of money to spend on those things. However, they could be deeply in debt in order to pay for everything. Conversely, someone that buys their clothes from Goodwill, brings their lunch to work everyday, lives in a small home, and drives a 10 year old car may actually have millions of dollars in the bank; unfortunately we often usually assume they have very little and are struggling to get by.
Today, take a step back and try not to judge everyone you see. Take a lesson from ‘secret’ millionaires and start to live a simpler life. Read The Millionaire Next Door for a new perspective on how you can also live below your means, spend less than you make, and live a ‘rich’ life. Remember, not everyone lives their life the way you do. Respect differences, share your experiences, and you will grow a little every day.
“If your goal is to become financially secure, you’ll likely attain it…. But if your motive is to make money to spend money on the good life,… you’re never gonna make it.” ~Thomas J. Stanley, author of The Millionaire Next Door