Do You Know a Millionaire?

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’:

Secret Millionaire House
You don’t need much to live a rich life.
  1. They live on less than they make.
  2. They live in simple houses.
  3. They drive older cars.
  4. They have multiple streams of income.
  5. 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

8 thoughts on “Do You Know a Millionaire?

  1. Hey there,

    These points are very true. I do also love the quote by Thomas Stanley. Those that try and earn money for that Supercar are not really seeing the bigger picture.

    I was watching a programme on TV the other day about a family that scrimped and saved and paid off their mortgage in 10 years. Thats my aim. I want to create a better financial future for my family.

    Thanks for this, I`ll read that book I think, should be interesting

    1. Hi Mat – Paying off your mortgage early is a great goal! The Millionaire Next Door offers so many tips for saving more and paying off debt, and gives you that extra motivation by seeing how other people have done it too. Thanks for your comment and stopping by.

      ~Jen

  2. I have heard of this book a few times now and need to read it. I know exactly the kind of people you are talking about. These are the people who I want to model my life after.
    With a wife and five kids, it is difficult to save money but all the more important. I’m always looking for ways to not only save but add additional sources of income.
    The list of characteristics of millionaires next door is very helpful to keep in mind and focus on.
    Is the millionaire next door anything like rich dad poor dad? This is another book that I have heard a lot about and have read bits of.

    1. Hi Craig – This book definitely provides lots information on how you can save money and focus on you and your family, rather than looking at how other people live their life. It’s usually the low-key, non-flashy people that have money and truly live a “rich” life. Rich Dad Poor Dad is another good book that can help shift your mindset and question why you spend money on certain things. Having five kids and a wife to support can be harder, but saving and earning more can be done if you set you set a goal and work toward it. The millionaires in this book have some great examples!

      Thanks for stopping by! Good luck and let me know if you have any additional questions.

      ~Jen

  3. Great article Jennifer, as someone who knows a few millionaires myself i can 100% verify what your saying, because although people may think of Millionaires going around buying Ferrari’s and diamond’s everyday sipping champagne on the party sun seeker – the reality is that most millionaires and financially free people are usually very frugal about their spending habits, and intelligent about their investments.

    Anyway I’m definitely going to read that The Millionaire Next Door book, it sounds like its right up my street 🙂 thanks for sharing!

    1. I love knowing the millionaires that are financially free and frugal about spending. Those are the people that are generally so friendly, kind hearted, and believe everyone is equal in this world. They came to the realization that you don’t need a lot to truly live a “rich” life. For them, it’s often having the freedom (to not work) that provides them the most happiness. Thanks for your comment!

      ~Jen

  4. It always surprises me when I find out someone is a millionaire that I never would have thought. I have two friends that are millionaires, at least on paper, who still grind at work and I don’t think they particularly like their jobs. I asked when they will retire and they usually just shrug their shoulders. Even though they are millionaires they don’t feel secure enough to actually retire. Interesting to hear what others feel like they need to retire in life.

    1. It’s often surprising to learn that someone you know, especially someone you work with, is a millionaire (even on paper). Everyone has a different perspective on what they think they need to retire. Once you reach that number and you feel financial free, I think if you still want to work, you should find something that you truly enjoy and are passionate about. For me, it’s accounting – as boring that it sounds to most people. Hopefully your friends find that they really can retire soon!

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