Dr. Thomas J. Stanley wrote my favorite book on finance. It is called “The Millionaire Next Door.” The content was based on years of studying America’s wealthy and Dr. Stanley found some interesting results. They were the opposite of how we see rich people on TV and in magazines. In this episode I share seven of the most common denominators of the wealthy that he revealed in The Millionaire Next Door.
I am encouraged by the results because they have nothing to do with
- Good looks
What was in common were simple planning and purposeful spending habits.
How many of these do you have?
These are the common denominators of the wealthy discussed in this episode:
- Operate or work in dull, normal-type businesses (dry cleaners, engineers, etc)
- Are not provided financial support from parents or inheritances
- Allocate time, energy and money efficiently
- Always live below their means
- 67% live on a budget
- Purchased their vehicles outright (cash) and 80% have never leased. Most buy 2yr old or older American made vehicles
- Believe Financial Independence is more important that the display of social status through material items
You certainly don’t need to have all of these to become wealthy, but they do prove that common sense principles contribute to positive results.