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 two 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 2 – 5 More Categories
6. Eating Out on a Regular Basis – With the price increases in corn, eggs, wheat products, and dairy products preparing your own food is already expensive enough. If you eat out you will often pay double, triple, or more the price for a meal you could cook at home. If eating out on a daily basis you will easily waste a few thousand dollars a year.
How often do you eat out?
7. Think He Knows It All – People who think they know it all stop learning and thus become unaware of new opportunities. Make it a point to learn something new every day. The millionaire next door is often reading and learning in order to stay motivated. Once you lose awareness, you lose. A good goal is to at the very minimum to read or listen to at least one book a month. Preferably more!
What have you been reading or learning lately?
8. Socialize with People Who Waste Money – Who are your closest friends or relatives? What kind of patterns do they exhibit when it comes to handling their money? It’s common sense but let’s just state the obvious: The people you socialize with influence your habits. It is impossible to save money if you constantly hang around people who blow all their money and live the high life.
Do you hang around people who are constantly blowing their money?
9. Desire Instant Gratification – Do you know how to say no to yourself? You have to think long-term to attain long-term financial freedom. The millionaire next door desires long-term deferred compensation over instant gratification. Knowing when to say no and say yes is a key factor.
Do you know when to say no and when to say yes to yourself?
10. Pay Retail for Name Brand Clothing – You can easily save hundreds of dollars a year on clothing purchases by waiting for sales or shopping at discount retailers like Marshalls, Ross, Khol’s, etc. Even Target is a good option. You can buy clothes on heavy discount at the end of the season. Shop consignment stores and thrift stores for heavy discounts on clothing. Better yet, avoid so called “name brand” clothing all together.
Do you pay retail for name brand clothing?
Imagine yourself having financial freedom! Being able to allocate your resources towards what matters most to you and your family. 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!
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So, how’d you do on these 5 categories? Are you following the habits of the millionaire next door?