10 Millionaire secrets about how they live!
Millionaire Lifestyle
I’m going to review the following list from a SmartMoney article.
The following list is written as if the average millionaire is talking directly to us.
- “You may think I’m rich, but I don’t.” – This is why so many millionaires declare themselves middle class, and in New York and other big cities… They are very correct in their assessment!
- “I shop at WalMart . . .” – This was surprising to me! I thought they would shop a little more upscale to avoid us “the masses” folks.
- “…but I didn’t get rich by skimping on lattes”. – Most of them earn well over $100,000, so they really don’t need to skimp here.
- “I have a concierge for everything.” – I believe this is for the more high-end millionaires. I don’t know any millionaire that uses such a service for personal chores.
- “You don’t get rich by being nice.” – This really is talking about in a business setting. They are all business when it comes to making money, and rightfully so!
- “Taxes are for little people.” the top 1% of earners pay 40% of the federal income taxes. It’s no wonder why they try to reduce taxes as much as possible within legal means… I would too if I were them (and so would you!).
- “I was a B student.” – Interesting! Maybe a C, B student still has a chance after all! The median grade point average for millionaires is 2.9! That’s the median folks! And most attended state college or a university! So I guess it really is more than just grades in school! 46% do have advanced degrees though!
- “Like my Ferrari? It’s a rental.” – It seems like a smart enough move to me (In fact, I was going to post using rentals instead of purchases in a future post).
- “Turns out money can buy happiness.” – This was a shocker for me. Usually, I hear the “money can’t buy happiness” matra, but common sense would dictate that having money affords you more opportunities to make yourself happy! Trips overseas, Disney vacations, flying, etc…
- “You worry about the Joneses — I worry about keeping up with the Trumps.” – Yes, there will always be someone richer than can afford something that you can’t. They are also worried about a declining lifestyle in retirement (just like the rest of us).
In the category #3″…but I didn’t’ get rich by skimping on lattes”, they mention that most millionaires still have mortgages. I checked and around 40% of millionaires don’t have a mortgage at all, and the median mortgage balance was under $100,000. So even though 60% have a mortgage, it’s small potatoes compared to their level of wealth…
My belief is at the beginning of the journey to become a millionaire, it makes sense to skip the lattes, if later, you decided that the lattes need to be added, so be it.
The most surprising piece of information I read was:
That means buying luxury items on sale, hunting for bargains – and even clipping coupons. In fact, affluent households, including those with income above $100,000, tend to be heavier coupon users than those with lower incomes, according to a 2009 study by Nielsen and market research firm Inmar.
This should not have surprised me…, of the few millionaires that I know, most are always looking to get things at a cheaper price. See Wealth Tip #3: Be Cheap, Don’t Show Off for my personal observation. I just have a hard time envisioning Warren Buffett or Bill Gates clipping coupons (lol).
Do you know any local millionaires?
If so, are they like frugal middle-class millionaires or more like Hollywood “Paris Hilton” style, high consumption millionaires?
-D
While Warren Buffet does have a NetJets Jet at his disposal, I understand that he does in fact use coupons. He even has a special McDonalds card that let’s him eat free! How’s that for coupons?
If skipping lattes is what helped you acquire wealth, why would you change once you got there?
.-= LeanLifeCoach´s last blog ..The Value Of DIY Is Greater Than Just Savings =-.
Wow!
That was a refreshing post and basically just dispelled every myth about millionaires.
Keep up the good work, D.
.-= Mike´s last blog ..Roth 401(k) and Roth IRA’s – Why the Roth Kicks Traditional Butt =-.
@LeanLifeCoach
Thanks for the addition, that’s pretty cool that he does that!!! You got to hand it to Warren, he’s the man!
@Mike
Hi Mike, and welcome to my site!
Yeah, amazing huh. Most of the millionaires that I know of pretty much follow the same pattern.
There are alot of myths out there. The converse is true too.
I’m often amazed at how the poorest people I meet are often also the most wasteful. Drive around a poor neighborhood on garbage day and you’ll see way more stuff tossed to the curb than in a nicer neighborhood.
My mom had rental properties, so I know first hand the food and stuff people leave behind. One renter who got behind on rent left behind t-bones in the freezer..(too bad the electricty was shut off and they were bad.) Another one left all her furniture, most of her clothes and food.
@Sandy L.
I think some of the poorest people don’t realize that it’s the little savings that leads to bigger saving, then it just snowballs from there.
A better financial education in public school would help a little, but mostly it’s a state of mind!
Welcome to my site!
MR- Did I give you permission to use a picture of my house? It’s cool, we part of the Yakezie crew so don’t sweat it 🙂
Taxes… ugh….. what i dislike most!
.-= Financial Samurai´s last blog ..Do “C” Students Deserve “A” Lifestyles? =-.
lol, sorry! At least I only showed the pic of your summer cottage instead of your big house. 😉
Agreed on taxes, I like the idea of a flat tax too!
Say, that was an excellent job on your flexo podcast! By far, the best pf podcast I’ve heard to date!!!
Regarding the “most surprising piece of information [you] read”, the techniques used to build wealth are the same used to preserve it.
Even though WB and BG probably aren’t clipping coupons (although maybe for Hooters wings based on your other picture) they’re still on the lookout for deals. WB is great at this with his views on stock valuation.
Also FS can agree/expand on the idea of taxes – wanting more return for less charge.
.-= FinEngr´s last blog ..Can Shrinking Yields Be a Good Sign? =-.
Sam, you need to up the quotient of bikini-d babes in your pool. Seriously. What’s the point of that house if you can’t swing off a pillar while babes toast you with martinis from floating rafts?
Or is that another millionaire myth?
@FinEngr
I agree with you on that one. I don’t think millionaires actually ever real super rich (at least not like Warren and Bill).
To me is seems like the money from taxes are being spent more and more on special interests groups, and class warfare.
@Monevator
Please, some of us still want to believe! Don’t ruin it for us, lol 😉
I’m thinking Sam’s entourage went with him to Hawaii (lucky dog, it must be good to be king!!!)
I don’t know if they’re millionaires but the people I know that I suspect have at least a million bucks certainly don’t act like it, and the people that do most assuredly are not.
I knew I should have rented that Ferrari 🙂
.-= David @ MBA briefs´s last blog ..Easy ways to improve your memory =-.
Hi David,
I wish I could have afforded to rent a Ferrari for a weekend when I was in my 20s!
I do think it would be worth it to rent something like jet skis, snow mobiles, and other comparable toys and tools!
I agree with you on how they act and dress too for that matter. I now know not to judge a book by it’s cover, at least with respect to wealth!
@ MR – Flat tax 4 life! Thanks for listening to the podcast. It was a fun experience, and Tom Doobie, the main interviewer was very professional.
@ Monevator – Babes laying around a big mansion pool is all a myth! At least at my house. I didn’t realize they have MTV CRIBS in London!
.-= Financial Samurai´s last blog ..How To Get Your Super Motivated Boyfriend to Marry You =-.
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@MR @Sam – Apparently Sam’s entourage was hanging about with Chris Brown’s in Hawaii last night. Perhaps they had a big throw down over flat taxes!
.-= Monevator´s last blog ..Playing chicken with house prices =-.
@Monevator
Yep, Chris Brown must be a reader of SAM’s too. He probably wanted to ask Sam some tax questions…
Ah, to be rich like those two… I wonder if Sam has pics?
I think the richest people don’t really live to what they really can afford. They knew the value of money and know how to spend them wisely…it’s what made them reach. And often times, those that do not have too much live beyond what they can afford just for the sake of “status symbol”…just my opinion.
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Some people are poor because they don’t know how to handle money. They don’t spend money wisely.