5 Things The Millionaire Next To You Is Doing With Their Money That You’re Not
- They spend less than they earn, a lot less.
The number one contributor to financial success is living within your means. That millionaire sitting in the booth next to you at your favorite restaurant learned this at a young age. Maybe a wise sage imparted this holy grail of financial wisdom to him as a child, or maybe he figured out on his own that you can’t build wealth if you don’t have any money left over at the end of the month.
- They Invest regularly in their tax-deferred accounts and then don’t look at them again.
You know how ALL THE BEST investors watch CNBC Every. Single. Morning? The best investors also are always talking about the latest stock pick that’s about to go through the roof while using words like ‘Leverage” “Parabolic” and “Crypto.” The Millionaire next to you probably doesn’t care about any of that stuff. In fact, he likely spent a little bit of time finding a few diversified, low cost index funds which he invests part of his paycheck into via his 401k and IRAs every month. Incredibly, he probably only looks at his accounts a few times per year when he meets with his financial advisor.
- They don’t care about the BMW you’re driving
In Thomas Stanley & William Danko’s classic book “The Millionaire Next Door,” they found that the most popular vehicle amongst millionaires was the Ford F-150. So that BMW with the cringey vanity license plate idling next to you at the stop light likely doesn’t have the rich owner you think it does. On the other hand, the blue-collar wife & husband in the pick-up truck two lanes down very well could be.
- They have always kept little to no debt.
The average American household debt has increased by 19% over the last decade. That millionaire next to you avoids credit card debt like the plague and pays her balance off each month. She probably also doesn’t own a car she can’t afford in order to keep up with the vehicle-du-jour sweeping the neighborhood this year.
- They value family over status
That millionaire next to you who actually looks like a pretty normal person, really cares about family. Actually, the thing that most people associate with millionaires-status symbols, he doesn’t give a hoot about. He would much rather spend his money on a family trip or a second home where his family can all spend quality time together in the summer. And because they’ve been so wise with their money in the past, they can afford it.
As an advisor I work with a lot of well-off families and individuals. Maybe it’s our celebrity driven culture, but it’s fascinating to turn on the TV and see programs exulting lavish lifestyles, only to juxtapose that image with what most financially successful people actually value.
*Note I was inspired to write this article about my own experiences from this great/hilarious article from The White Coat Investor: https://www.whitecoatinvestor.com/rich-doctor-across-the-hall/
Eric Schrum is an advisor and partner at Schrum Private Wealth Management. Eric contributes for The Faith First Advisor, The Faith Driven Investor, and has a particular interest in helping Christians align their finances with their beliefs through wise financial planning and investing. Investment Advisor Representative of Spire Wealth Management, LLC. Advisory Services offered through Spire Wealth Management, LLC, a Federally Registered Investment Advisor. Securities offered through an affiliate, Spire Securities, LLC. Member FINRA/SIPC.
Trending Now on Affluent Christian Investor
Sorry. No data so far.
The Affluent Mix
The Era Of No Consequences January 14, 2021 | Frank Vernuccio

Income And Well-Being January 14, 2021 | Jim Huntzinger

How Companies Pay Shareholders: Buybacks Don’t Subtract From Wages... January 14, 2021 | Jerry Bowyer

Taper Nervous Breakdown January 14, 2021 | Michael Pento

China, Democrats, And Donald Trump January 8, 2021 | Frank Vernuccio

Biochemical Engineer Ivor Cummins Discussing “The Rosetta Stone Of Modern ... January 7, 2021 | Jerry Bowyer

Hillbilly Elegy Economics Lesson: Culture Matters... January 7, 2021 | Roger McKinney

Take The Under On 2021 GDP January 7, 2021 | Michael Pento

How Companies Pay Shareholders: Buybacks Are Not A Giveaway... January 7, 2021 | Jerry Bowyer

The History Of Income Inequality And Popping Economic Bubbles... January 7, 2021 | Jim Huntzinger

Diseases Of Modernity: What Do They Have In Common?... December 22, 2020 | Jerry Bowyer

Mobocracy December 22, 2020 | Frank Vernuccio

Beware Market Land Mines: Stimulus, Vaccine Failure, Interest Rates... December 22, 2020 | Michael Pento

Following Classical Economics December 22, 2020 | Jim Huntzinger

What Prostate Cancer Taught Me About Our Fiscal And Physical Health Code Blue... December 22, 2020 | Kevin Cullis

The War Of The Worlds December 22, 2020 | Terry Applegate

Cuomo’s Partisan Authoritarianism Struck Down By SCOTUS... December 15, 2020 | Frank Vernuccio

Socialism: The Road-To-Hell Paving Company... December 15, 2020 | Roger McKinney

Amazon And The Los Angeles Lakers Wreck The Wage-Stagnation Narrative... December 15, 2020 | John Tamny

Capital Abounds, And It Needs A Place To Go... December 15, 2020 | David Bahnsen

How Companies Pay Shareholders: Buybacks Are Not A Giveaway... December 15, 2020 | Jerry Bowyer

Signs That Biden Will Be Soft On Iran December 10, 2020 | Frank Vernuccio

Join the conversation!
We have no tolerance for comments containing violence, racism, vulgarity, profanity, all caps, or discourteous behavior. Thank you for partnering with us to maintain a courteous and useful public environment where we can engage in reasonable discourse.