The Millionaire Next Door

Lesson 1. Millionaires Are Found Inside Diamond Mines

Millionaires are perceived as an exotic species by many. There are multiple ways as to how people view millionaires. The common perception is the belief that millionaires are always spending on things common people dream about. They wear glasses worth $10,000, watches that don’t go below $5000, and suits that are always tailored with the finest clothing. People don’t seem to consider anyone who drives a car that costs less than $70,000 a millionaire. The millionaire status is almost always associated with reckless spending and an elegant demeanor. But are the millionaires this extravagant?  No. Surveys state that millionaires of America (50%) don’t live in posh or upscale neighborhoods. This might come off as a really surprising piece of information, but many millionaires prefer a low profile livelihood. Why you ask? Millionaires are almost always self-made, and there are few who inherit properties and still retain the status of a millionaire. Therefore, since their birth, these people have lived in conditions that are not “fit” for millionaires, according to society. Throughout this insight, keep it in mind that many millionaires live below their means. 

Becoming a millionaire requires meticulous planning and efficient budgeting. It is very much possible that a person who earns $90,000 a year might become a millionaire but someone who earns $150,000 might not. It all depends on how these people accumulate their ‘wealth’. A lot of these millionaires make their wealth slowly and steadily.

Lesson 2. What Does It Mean To Be Wealthy?

Does earning a lot of money make one wealthy? Maybe, or maybe not. A lot of income is not an indicator of a wealthy person. Wealth is something that is accumulated over the years by saving and budgeting. A school teacher might have more wealth than a business owner. Sounds strange? Take the following example.

1. Mrs Swift is a professor who has an annual income of $65,000. She is in her mid-fifties and is a millionaire. Shocking? Not at all. Mrs Swift is a meticulous planner when it comes to money. She spends her earnings on things that require immediate concern and are really important. Mrs Swift has owned the same vehicle for five years and lives in a middle-class neighbourhood. Doing all of this, she has earned a wealth of $1.2 million. She never had to take loans to pay her children’s tuition fees, and she has enough money to sustain herself for an extended period of time. Mrs Swift is wealthy and financially independent. 
2. Mr Ove is the owner of a food mart in
   Unlock Knowledge with Wizdom App

   Explore a world of insights and wisdom at your fingertips with the Wizdom app.

   • 1 Million+ App Download
   • 4.9App Store Rating
   • 5000+Summaries & Podcasts

   Read Summary on app