It is time to take a sneak peek into how millionaires live their lives and learn the secrets of amassing and keeping great wealth.
The Millionaire Next Door by Thomas Stanley & William Danko explains highlights the definitive characteristics of millionaires, debunks certain myths and shares insights on how individuals can achieve their dream of becoming a millionaire.
The secret sauce to becoming a millionaire
1. Contrary to popular belief, millionaires do not drive flashy cars, wear expensive watches, and spend excessive amount of money on consumption. Instead, they tend to live modestly, even frugally, and are highly disciplined about their consumption.
2. Great wealth can be accumulated only when individuals have a robust plan in place. This starts with budgeting and then moves on to saving and investing. Millionaires tend to spend their money responsibly and invest efficiently.
3. Without efficiency, it would be a lot harder to accumulate any wealth. People who understand how to plan their wealth have the ability to set aside money for investments etc. A great goal to have is to have a minimum of 15% of your income available for investments. This can be the key to future wealth generation.
4. Wealthy parents must take the time to consider how they raise their children. Instead of just giving them money to spend, millionaire parents should encourage their children to become responsible with money.
5. There is always going to be a difference between those who work hard for their wealth and those who are born with it.
The Millionaire Next Door by Thomas Stanley & William Danko succinctly describes the lives of millionaires. We hope you enjoyed this podcast and will tune in to listen to more such podcasts on investing nuggets.