The 3 words that describe the affluent in America: FRUGAL FRUGAL FRUGAL.
The millionaire next door is someone who budgets - they know what they spend money on.
Asked why someone who is a millionaire needs to budget, the answer is:
"They become millionaires by budgeting and controlling expenses, and they maintain their affluent status the same way"
The average millionaire achieved their wealth through a combination of hard work and careful money management. They live below their means. They work on making themselves capitalists - meaning they save and invest and start earning more and more of their wealth from investment earnings rather than business income.
Thursday, December 29, 2011
Tuesday, December 27, 2011
7 Traits of Millionares
Although the book is over 15 years old, The Millionaire Next Door provides wonderful financial guidance. Here are the 7 common denominators of millionaires - 80% of whom are first generation rich:
1. They live well below their means.
2. They allocate their time, energy, and money efficiently, in ways conducive to building wealth.
3.They believe that financial independence is more important than displaying high social status.
4. Their parents did not provide economic outpatient care.
5.Their adult children are economically self-sufficient.
6. They are proficient in targeting market opportunities.
7. They chose the right occupation.
The millionaire next door is usually a business person who has lived in the same city all their adult life, owns a business, married once, lives next door to people with a fraction of their wealth, is a compulsive save and investor, and has made the money on their own.
Becoming a millionaire is the result of hard work, perseverance, planning, and most of all, self discipline.
1. They live well below their means.
2. They allocate their time, energy, and money efficiently, in ways conducive to building wealth.
3.They believe that financial independence is more important than displaying high social status.
4. Their parents did not provide economic outpatient care.
5.Their adult children are economically self-sufficient.
6. They are proficient in targeting market opportunities.
7. They chose the right occupation.
The millionaire next door is usually a business person who has lived in the same city all their adult life, owns a business, married once, lives next door to people with a fraction of their wealth, is a compulsive save and investor, and has made the money on their own.
Becoming a millionaire is the result of hard work, perseverance, planning, and most of all, self discipline.
Subscribe to:
Posts (Atom)