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