The Millionaire Next Door
- Learn these 9 lessons now if you want to become a millionaire
//THREAD
- Learn these 9 lessons now if you want to become a millionaire
//THREAD
If you want to become a millionaire
Or just become wealthier in general
It's always a good idea to study those who have achieved millionaire status
What you find will often surprise you
Here are the 9 key takeaways from the book that did exactly that
Or just become wealthier in general
It's always a good idea to study those who have achieved millionaire status
What you find will often surprise you
Here are the 9 key takeaways from the book that did exactly that
1. High-income β High wealth
Income does matter
But, the size of a pay check accounts for only ~30% of the variation of wealth among households
What really matters is how much of the income is invested
On average, millionaires invest nearly 20% of their income
Income does matter
But, the size of a pay check accounts for only ~30% of the variation of wealth among households
What really matters is how much of the income is invested
On average, millionaires invest nearly 20% of their income
2. You Need A Budget
Facts - The majority of millionaires have a budget
Those who don't have what the authors called βan artificial economic environment of scarcity,β more commonly known as βpay yourself first.β
i.e., They invest a chunk of their income before they spend any
Facts - The majority of millionaires have a budget
Those who don't have what the authors called βan artificial economic environment of scarcity,β more commonly known as βpay yourself first.β
i.e., They invest a chunk of their income before they spend any
3. Know where the pennies go
~65% of millionaires can answer βyesβ when asked: βDo you know how much your family spends each year for food, clothing, and shelter?β
But only 35% of high-income, non-millionaires answered yes to this question
Millionaires track their spending
~65% of millionaires can answer βyesβ when asked: βDo you know how much your family spends each year for food, clothing, and shelter?β
But only 35% of high-income, non-millionaires answered yes to this question
Millionaires track their spending
I can tell you exactly what our expenses are on a monthly and yearly basis
I also used this to build a plan to become a millionaire and become financially free
Here's a video showing you exactly how I did it π
I also used this to build a plan to become a millionaire and become financially free
Here's a video showing you exactly how I did it π
4. Know your goal
When asked: βDo you have a clearly defined set of daily, weekly, monthly, annual, and lifetime goals?β Millionaires answered "Yes"
Know what your financial goals are - if you want to retire early, you need to know how much you must invest to get there
When asked: βDo you have a clearly defined set of daily, weekly, monthly, annual, and lifetime goals?β Millionaires answered "Yes"
Know what your financial goals are - if you want to retire early, you need to know how much you must invest to get there
5. Time is Money
Budgeting & setting goals takes time
But millionaires are willing to invest that time to get where they want to be.
Authors found a strong positive correlation between investment planning and wealth accumulation
Budgeting & setting goals takes time
But millionaires are willing to invest that time to get where they want to be.
Authors found a strong positive correlation between investment planning and wealth accumulation
Those with a regimented investing strategy accumulated more wealth, more rapidly
They know what they need to invest each week, month, year to achieve their end goal
They know what they need to invest each week, month, year to achieve their end goal
6. Learn to love your house
The house you buy, as well as how often you move will determine your ability to accumulate wealth
In The Millionaire Next Door, that wealthy family has been next door for a while
Half of millionaires have lived in the same house for >20 years
The house you buy, as well as how often you move will determine your ability to accumulate wealth
In The Millionaire Next Door, that wealthy family has been next door for a while
Half of millionaires have lived in the same house for >20 years
7. Becoming a millionaire takes teamwork
The majority of wealthy people are married and stay married to the same person
Of course, marriage isn't all about money, but studies have shown that people who are married accumulate more wealth than those who are single or divorced
The majority of wealthy people are married and stay married to the same person
Of course, marriage isn't all about money, but studies have shown that people who are married accumulate more wealth than those who are single or divorced
Being aligned on your financial goals and the steps you need to take to achieve them is a huge hack when it comes to accumulating wealth and becoming financially free
Money is the cause of most marital arguments
Avoid this with a simple monthly review of your goals and progress
Money is the cause of most marital arguments
Avoid this with a simple monthly review of your goals and progress
8. Don't drive away your wealth
The majority of millionaires own their cars, rather than lease
Approximately 1/4 have a current-year model, but another 1/4 drive a car that is 4+ years old
More than 1/3 tend to buy used vehicles
Millionaires most commonly own a Toyota
The majority of millionaires own their cars, rather than lease
Approximately 1/4 have a current-year model, but another 1/4 drive a car that is 4+ years old
More than 1/3 tend to buy used vehicles
Millionaires most commonly own a Toyota
9. The wealthy are happy
All this living below your means, tracking expenses and setting goals sounds boring, right?
Well, even if you don't enjoy that part, stats show you will be happier for doing it
All this living below your means, tracking expenses and setting goals sounds boring, right?
Well, even if you don't enjoy that part, stats show you will be happier for doing it
The study in the book shows
Financially independent people are happier than those in their same income/age cohort who are not financially secure
They worry less & have greater peace of mind from living below their means and having money in the bank
Financially independent people are happier than those in their same income/age cohort who are not financially secure
They worry less & have greater peace of mind from living below their means and having money in the bank
The Bottom line
Those who drive a BMW & wear a Rolex are not happier than those who drive a Honda & wear a Timex
When it comes to achieving financial freedom, adopting the lifestyle of the βmillionaire next doorβ means you can save more toward a lower-priced goal
Those who drive a BMW & wear a Rolex are not happier than those who drive a Honda & wear a Timex
When it comes to achieving financial freedom, adopting the lifestyle of the βmillionaire next doorβ means you can save more toward a lower-priced goal
10. Make a plan
Most millionaires don't end up wealthy by accident
They all got there because they had a plan to become financially free
Setting a goal, making a plan, and tracking progress against that plan
I've implemented the same strategy here π
Most millionaires don't end up wealthy by accident
They all got there because they had a plan to become financially free
Setting a goal, making a plan, and tracking progress against that plan
I've implemented the same strategy here π
This is the formula that can help even non-millionaires achieve financial freedom
Let's recap
Let's recap
Summary:
1. High-income β High wealth
2. You Need A Budget
3. Know where the pennies go
4. Know your goal
5. Time is Money
6. Learn to love your house
7. Becoming a millionaire takes teamwork
8. Don't drive away your wealth
9. The wealthy are happy
1. High-income β High wealth
2. You Need A Budget
3. Know where the pennies go
4. Know your goal
5. Time is Money
6. Learn to love your house
7. Becoming a millionaire takes teamwork
8. Don't drive away your wealth
9. The wealthy are happy
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2. Retweet the 1st tweet below to share this thread
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