Can you select which of these two couples is the Millionaire?
If you selected couple #1 you are wrong! Many millionaires achieved financial independence through hard work and sacrifices. They are discipline to live well below their means.
Millionaire Rule #2: Live Well Below Your Means.
Characteristics of Self Made Millionaires
Contrary to popular belief, the following are typical behaviors of a millionaire:
- Live in modest homes,
- Do not wear designer clothes,
- Do not drive fancy cars,
- Invested in themselves by obtaining an education,
- Make smart investment decisions,
- Work very hard, and
- Are frugal (they save their money).
Interestingly as a society, we tend to judge people based on their purchases, e.g., fancy car, designer clothes and accessories. We view them as successful due to their pretense of wealth. Yet most of these people are not wealthy. They may have a small nest egg but most of their disposable income is spent on appearing wealthy. So do you want to appear wealthy or be wealthy?
Millionaire Rule #3: Keep Up With Your Goals NOT Your Jones.
Here’s my thought if Brittany Spears is wearing it, it’s out of my price range. If a pro-athlete is driving it, it’s out of my husband’s price range. Do not let your neighbors or media make you think you should behave a certain way. Pay yourself first and put your money in your bank account. Take pride in the growth of your investments and net worth not on outwardly appearance. Please do not misunderstand me, you should look presentable it just shouldn’t cost you a fortune. Remember, eventually you grow to dislike the outfit and your car will eventually lose its value (depreciate).
The author’s of The Millionaire Next Door made a great analogy, when he asked the question, “Have you ever noticed those people who jog day after day?” He goes on to say, “They are the ones who seem not to need to jog.” People who are physically fit are disciplined and the same discipline is needed to be financially fit. You must make sacrifices and pay yourself first.