Interested in becoming a millionaire? I’ve recently been re-reading and have been listening to the audiobook “The Millionaire Next Door: The Surprising Secrets of American’s Wealthy” by Thomas J. Stanley and William D. Danko. This is part one of a four part series.
I’ve gone in a more in-depth book review here. But basically the book is based on the work of the two researchers named above who interviewed millionaires over several decades to find out how they got rich and how they stayed that way.
The book eliminates the myth espoused by media and marketing companies that rich people live extravagant lives. If you want to become a millionaire a good place to start would be to see how many of these “millionaire traits” you have and adjust your lifestyle accordingly.
What the Millionaire Next Door does NOT Pay for: Part 1 – First 5 Categories
1. Pay for Lawn Service – It is possible to save $100-200 a month by mowing your own lawn. This is one I struggle with personally. Mowing your own lawn also potentially means getting some healthy exercise and maybe even a bit of a tan.
Do you pay for lawn service?
2. Go to a Hair Stylist – It seems even the most reasonable barbershops charge guys $15 to $20 for a haircut these days. If you’re a lady, it may cost well over $50 a visit. Let’s not even talk about other services like dying your hair, shampoo, etc. The Millionaire Next Door either cuts his or her own hair. Or, he or she finds someone to do it at a reduced price or for free .
Do you go to a hair stylist or barber?
3. Use Time as a Measurement for Success – The millionaire next door measures success based on output quality. In other words the results of what he or she did that day. The amount of time spent on something means nothing if the results do not meet the expectations.
Do you base success based on time spent or output quality?
4. Drive Brand New Cars – Why would anyone pay the full retail price worth often half a year’s salary for the fastest depreciating asset on planet Earth? Oh we are so brainwashed by the media and marketing gurus. The average millionaire drives a 2 year old vehicle according to the authors.
How old is your vehicle?
5. Carry a Monthly Credit Card Balance – Let’s face it. Carrying a monthly credit card balance only makes sense if you enjoy poverty. Monthly interest payments can add up to hundreds of dollars over the course of a year. Do not buy “stuff” right now that you cannot afford to pay for with cash right now to impress people you don’t even like!
Do you carry a monthly credit card balance?
Imagine yourself having financial freedom! Being able to allocate your resources towards what matters most to you. Imagine yourself being able to give like never before. This is all attainable for the average person if you learn from those who have lived frugally, built wealth, and practiced self-discipline!
Think you’d like to read The Millionaire Next Door: The Surprising Secrets of American’s Wealthy? Join us for the book club discussion on Facebook in Book Worms – Book Club. The book discussions started this week with Chapter One!
This is part one of a four part series. I’ll post 5 more tomorrow or next week!
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So, how’d you do on these 5 categories? Are you following the habits of the millionaire next door?