Posted on 07/29/2011 5:43:44 AM PDT by CSM
When we think of millionaires, we envision the lifestyle of a Hollywood movie star. We think of big houses, fancy cars, and "champagne wishes and caviar dreams."
But here's the secret few people know: Most millionaires don't live a Hollywood lifestyle. Most millionaires are people just like you who work hard, don't live in fancy houses, and drive used cars. In fact, you never would guess that they were millionaires.
It's true. A research study conducted by Dr. Thomas Stanley and Dr. William Danko revealed this fact in their book, The Millionaire Next Door. The findings by the two researchers support what Dave has said for years: your biggest wealth-building tool is your income. It almost sounds too simple, but it's absolutely true!
Right now you might be saying to yourself, I work hard and have a steady income. Why am I not a millionaire? The answer might be that you spend more than you make. If that's true, you're essentially giving your money to someone else so they can become rich while you live paycheck to paycheck. If you want to be a millionaire, you need to change your lifestyle to mimic most millionaires.
The lifestyle of the average millionaire
Most millionaires live well below their means. They don't worry about driving the nicest cars or living in the biggest houses. They believe that true financial independence is more important than showing off their social status. What does that mean to you? It means you must get out of debt and stay out of debt!
But they don't stop there. Most millionaires also plan the routes their money will take. They spend a lot of time, energy and money toward budgeting, saving and investing. They set financial goals, make detailed plans to reach those goals, and never give up.
How you can become a millionaire
Did you take special notice that most millionaires invest their money? It's not enough to live below your means and save money; you must invest that money. Dave recommends you invest in mutual funds because they offer several advantages over individual stocks. Here's a quick breakdown of his suggested investments:
•25% in a growth mutual fund •25% in a growth and income mutual fund •25% in an aggressive growth mutual fund •25% in an international mutual fund
For more details and to find high-return mutual funds, talk to one of our investing Endorsed Local Providers (ELPs). Our ELPs are professionals who think like Dave when it comes to investing and have promised to take care of his fans. Our ELPs will explain everything to you in plain English and never try to pressure you into anything you don't understand.
I have been guiding my aunt through a rough time after her husband died suddenly. Fortunately my uncle left behind an amount of money that will get his young 63-year-old wife through without worry. Having never written a check, she was scared, and I was worried for her. Your ELPs have been wonderful. They have taken unbelievable time with her and refuse to sign her up for anything she does not completely understand. They have given my aunt and I a wonderful experience. Thank you, Dave, for recommending them, and I thank your ELPs more than they will ever know. – Tammy from TN
Start planning to become a millionaire with one of Dave's Investing ELPs in your town.
Want to find out which funds average 12% returns and which have a long, proven history of performance? Morningstar Principia – Mutual Funds software will show you! It's the software Dave has personally used for over 15 years.
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That is only a surprise to people who don't work for a living. I know a fair number of millionaires and most live in houses that are a little bigger than a Middle Class house. Their cars are decent but not Mercedes or BMWs. They go on nice vacations but aren't sailing around the world. And most importantly, they plow money into their kids' educations and maintaining their houses and property, and save the rest for retirement.
We told him to, at least, start with the minimum like he did.
What do you think are the chances he will be a millionaire Tax Free?
A million dollars just aint that much money today.
I have several friends who’s net worth is a million dollars.
They are struggling the same as me. they work hard for their money. They have saved and worked their whole lives and some have passd their work ethic off to their sons or daughters who continue to keep their business’s going.
When Obama speak of taxing Millionaires, he is speaking of screwing over the working class people who got their money through hard work, while people like himself and Nancy Pelosi will find themselvs a fancy loophole. Find it? Did I say Find it? They will CREATE it.
>>What do you think are the chances he will be a millionaire Tax Free?<<
If he continues to keep an eye on where he is invested and what it is doing, his chances are excellent. A small, consistent deposit into the account with regular weekly reviews will make sure he reaches that goal.
History charts help you make decisions, for example by showing you that a particular company’s profits may slow in the winter while expanding in the spring, summer and fall. Do not make a buy sell trade every spring and every fall because that DOUBLES your taxes. Holding a position for at least a full year is generally the smart way to make money unless you are very astute.
To be a millionaire you must have 1 1/2 million in assets. UNCLE SAM is always standing close by you when you make withdrawls.
When your son is 55, 30 years from now he’s going to be looking at needing a $5M account when he retires. Remember the value (buying power) of a dollar continually drops with annual inflation. Don’t worry he’ll make it.
Exactly. Its the old "ant and grasshopper" story. Anyone with a decent salary can save a million dollars if they don't blow their money over their lives. My stepfather was a pipe fitter on construction jobs and ended up with a million in the bank. While his friends were buying new cars and going on expensive vacations, he saved. And when he passed away, my mother didn't have to worry about where money was coming from in retirement since they had no pensions. Yet some of his family members (my aunts and uncles) who lived a lazy lifestyle (eg, trying to live off disability) looked at him with envy and were constantly hitting him up for money. He was not a rich man; just frugal and responsible.
“He was not a rich man; just frugal and responsible.”
That is exactly what it takes and remember, it is never to late to change our habits.
We are debt free, except for our payments to the government.
We pay cash for everything and if we use a credit card we pay it off before the bill comes in or right as we get it.
Mortgage is lower than most people pay for rent. Got no idea why we don’t just pay it off. Habit I guess.
Neighbors, to a person, have 2nd and 3rd on their homes.
One neighbor is upside down by $600 grand with total mortgage of $1.4 million. Must hurt to write that check.
The part of the book where people selling their used cars was indicative of the types of people who are self-made millionaires. Before they bought a used car, a very high-end used car, the millionaires would examine the car scrupulously looking for problems. A lot more so than the average used-car buyer. And they weren't purchasing poorly made cars. But that is one reason why they're millionaires.
Some years ago in my old hometown of La Crosse, Wis a man who had worked for a local brewery as an average worker had left the city about one million dollars when he died to be used for making a park. How did an average brewery worker save a million dollars? Well Paul Stry managed to do it. Now he has a park named in his memory.
Ping.
BUMP!
I’m about half way there! :)
Visiting with my Credit Union Gals today to get pre-approved for a car loan. Of COURSE I have the cash for a car, but I need to beef up my credit rating since my ex trashed it this past year while we were divorcing.
*Rolleyes* A gal’s gotta do what a gal’s gotta do.
I’m also getting an emergency CC at 8% through them, versus the 24% one I have now (with nothing on it, but still!) Again, just doing these things to restore MY credit rating.
I have a new mortgage too; got a lower rate and a lower monthly payment which is allowing me to keep my farm, post-divorce.
AND - I’ve gotten TWO raises in the past 6 months! Funny how the harder I work the luckier I get, aint it? LOL!
It’s been a long slog this past year, but I’m doing good, financially. Living BELOW your means gives you a LOT of wiggle room when bad things happen...and they will.
Life. Is. Good. :)
But, it is easier to pick up hot chicks if you do drive fancy cars and live in big mansions...
Yep. But Hot Chicks are usually High Maintenance and expensive to keep!
Look for simple girls with good morals, a stellar work ethic, no debt and money in the bank if you want True Love. :)
I’ll pat you on the back for your hard work. Keep it up....However, the CC part sent chills up my spine! ;-)
We can still be friends tho.
That can't be right. If that's true, how'd The Won end up with Moochelle, him living in the White Crib and flying on AF1?
Oh, that? Just for a major emergency or for booking travel and sleazy motel rooms, LOL!
I pay it off each month. I have to work on my credit rating since the ex trashed it.
It’s all in the game. :)
So...see you at the Mall! *SMIRK* NOT! :)
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