The authors of The Millionaire Next Door, Thomas Stanley and William Danko, have spent considerable time in researching the lives of the affluent and the wealthy. Their research led them to the following conclusions about how the rich in America arrived there, and how they continued to stay that way. From their conclusions, they believe the first point is the most important.

• They live below their means.
• They allocate their money, free time and energy to wealth accumulation.
• They prefer achieving financial independence over displaying / flaunting their social status.
• Their parents did not give them free and frequent handouts of money.
• Their children usually become self-sufficient.
• They are skilled in targeting business opportunities.
• They carefully select occupations that complement their skills and talents and that lead to building wealth.

The studies show that typical millionaires own their own homes but do not live in multi-million dollar homes or drive expensive cars. More often than not, they buy used cars, bargain for other purchases and live simple lives. They do not live extravagant lifestyles. They usually live frugally.

Seldom do inheritances or advanced degrees build fortunes. The wealthy in America are usually living far below their means and working very hard. Typical millionaires are willing to give up status to instead invest for financial security. The greatest percentage of millionaires are self-made. They are some of the most efficient and resourceful people around.

In many cases their children are unaware of their family’s wealth. Instead of living in plush New York garden apartments, Beverly Hills or on the Florida waterfront, much of the time, they just live next door in comfortable neighborhoods.

Many millionaires are ordinary people who work dull jobs. They have learned important truths. These include:

• nothing is more valuable than working hard
• save large sums of money
• live well below your means.

They have learned the important lesson of living on a budget, accounting for their expenditures and paying close attention to their investments.

I like what Dave Ramsey says about living simply. He often notes, “If you will live like no one else today, you can LIVE like no one else tomorrow.” It’s a great maxim and one that is true!

Content © Rich Brott, 2011

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