What picture pops into your mind when you think of a millionaire? Someone like Donald Trump or Paris Hilton? Someone who has lots of money and spends lots of money.
What about the young doctor or lawyer that lives in the high scale neighborhood. He has a beautiful new house, a convertible BMW, and a brand new building for his practice. Is he a millionaire? He could be, but more than likely, he just looks rich. He may have $100,000 or more in student loans, the house is mortgaged to the max, the BMW is leased, and the building for his practice was completely built with credit. Now do you really think he's a millionaire? He's got a good income, but he has no assets, they're all liabilities.
Source: Jim Linwood
So if most of the people with fancy houses and even fancier cars aren't millionaires, who are these millionaires?
According to The Millionaire Next Door, most millionaires do the things we talk about on this site. They have a frugal lifestyle! The wife clips coupons and often stays at home, taking care of the home and helping her husband in his business.(Most millionaires are business owners.)
So far all the steps we take in saving money, have been to help our families get a step ahead. Getting out of debt and having an emergency fund is such a great start! So while being frugal and living on a budget help us find freedom from debt, it doesn't stop there. These are habits that will help us to grow wealthy. We are able to tell ourselves "No" when we want a new toy in order to benefit our long-term goals.
We're on the Right Track!
These are all traits that millionaires possess! If we want to become wealthy one day, so we can Live Like No One Else, we need to stay on course. We may have a bit of Frugal Burn Out and take a very short break, but as long as we make this a frugal lifestyle, not just a phase, someday we can also Give Like No One Else!
Let Hear From You!
Does this encourage you that you are on the right track? I sure hope so! Do you know one of these Millionaire Next Doors? They sure don't personify Donald or Paris, do they?!
If you're a blogger I'd love you to link a tip for the home, family, or money management. Please link directly to your post so others can easily find your tip and put a link back here on your blog.
This post is linked to Thrifty Thursday and Frugal Friday.