015 – Are You The Next Millionaire Next Door?
Are you a millionaire next door? Do you want to be the next millionaire next door? Follow these 7 traits from the book “The Millionaire Next Door” to find out how.
- They live well below their means.In their research, Stanley and Danko found most millionaires weren’t heavy spenders. The majority spent less than $200 on shoes and only half could justify paying more than $235 for a wristwatch. Another surprising finding: two-thirds of the millionaires they surveyed said they followed a household budget.
- They allocate their time, energy and money efficiently, in ways conducive to building wealth.For example, the authors found that millionaires were more likely to invest time planning their household finances than, say, shopping for a car. On the flipside, most people would have a lot more fun allocating time comparing car prices than sitting down with a financial planner and figuring out how much more money they have to save to be able to stop working at a certain age.
- They believe that financial independence is more important than displaying high social status.“They inoculate themselves from heavy spending by constantly reminding themselves that many people who have high-status artifacts, such as expensive clothing, jewelry, cars, and pools, have little wealth,” the authors wrote.
- Their parents did not provide “economic outpatient care.”Millionaires rarely become millionaires in their own right if their parents are constantly financing their lives. Otherwise, they risk becoming too financially dependent to make their own way.
- Their adult children are financially self-sufficient.Teaching kids to be self-sufficient not only encourages them to create their own financial security but ensures that they won’t be draining their parents’ finances later on.
- They are proficient in targeting market opportunities–Essentially, the wealthy become wealthy often by targeting occupations that serve other wealthy people (that’s their “market”). That’s where the real money is, Stanley and Danko argue. Jobs that serve the wealthy — for example, estate planning, law, accounting — often come with bigger paychecks.
- They chose the right occupation.The authors found that roughly half of the millionaires they interviewed owned a business of some sort, but the vast majority said they would not encourage their children to follow in their footsteps. Millionaire couples with children were five times more likely to send their children to medical school than other parents in America and four times more likely to send them to law school, according to their findings.
Via Yahoo by Mandi Woodruff
About the author, Scott Wellens
Scott Wellens, CFP® is an investment advisor and founder of Fortress Planning Group. After earning his Bachelor of Science degree from the University of Wisconsin-Oshkosh, Scott quickly ascended to become a Vice President of North American Sales at a major regional provider of telecommunications infrastructure. While financially successful in this role, Scott searched for ways to pursue his passion related to financial literacy and providing financial freedom for both his own family and others. During his search, Scott became curious about the significant gap he found in the financial services sector: he was unable to find a comprehensive financial planner that maintained a family stewardship lens without being attached to financial products. Scott decided to fill that gap by creating his own planning firm that maintains a strong passion for comprehensive, unbiased wealth planning that is genuinely client-centered.
Scott resides in Menomonee Falls, WI with his family. He is the father of three active and independent daughters who keep him on his toes. Scott is an active community member, serving on the Hamilton Education Foundation Board, serves as a Dave Ramsey Financial Peace facilitator and leads the All Pro Dad’s group at their local elementary school. Scott enjoys spending his free time visiting state parks with his family, reading, and watching the Milwaukee Bucks and the Green Bay Packers win ball games.