The Millionaire Next Door

Have you seen this book? If you have, how did it make you feel?

Reading this book opened my eyes to the possibility of becoming a Millionaire. Not because I have a product to sell or because I came from a low income family, but because I am responsible for me. And so are you. If you want to achieve the unthinkable, you will do it. This is possible because you have the motivation to do it.

So here are 4 things I took from this book.

#1 People who live in mansions are not millionaires

Most people like to appear wealthy. They like to shop at Tiffany & Co., purchase Lacoste shoes, and acquire property in upscale neighborhoods. But are they really wealthy? The answer is no. Signing out a mortgage bigger than their annual income promises a life of constant debt.

#2 Live Within Your Means

Instead of following the trends that come in and out of fashion, live within what you can afford. Consumerism in America has impacted each person individually. Advertisements and marketing strategies send you messages to buy buy buy. That the newest car is something you absolutely need to purchase. Take a step back and think about your choices. Before making a big purchase, sit down and think about whether you really need it. Can you live without it? A majority of the time you can.

#3 Be FRUGAL

Oh frugality! The best choice is the one that will save you money. Why would you buy clothes from the top designers, when you can easily shop at TJ Maxx, Ross, Sears, and Macy’s. Go towards the sales! The same idea is implemented when buying groceries, use coupons, sign up for the store’s value card. Think using coupons are tacky? Think again. If millionaires do it, why can’t you? Be price sensitive! See a bread on sale? Buy it.

#4 Keep a budget

One of the most important ideas that stemmed out of this book was the conception of saving. Millionaires got to where they are now by salvaging at least 10% of their paycheck. They managed their own budgets and examined where their money accumulates and distinguishes in an instant. Being aware introduces a chance to minimize expenses. Make a goal to reduce an expenditure each month and this will give you an opportunity to save a little more.

Keep in mind, that even a school teacher can become a millionaire. As long as you stay frugal, save and live within your means. In the end you earn peace of mind. To know that you will retire comfortably without debt or money troubles.

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4 thoughts on “The Millionaire Next Door

  1. Thanks for posting what you took from the book. I’m waiting for my copy from the library as I’ve been told to read it. I agree 100% with everything you said especially not worrying about what other people have as it might be a big pile of DEBT. Keeping a budget is what helped us grow our savings to where it is today which you can see on my blog. If we only knew this when we were in our 20’s we would be even further in the game. Thanks for sharing this.

  2. This is all so true. Although, if wages are frugal… that makes it hard to become a millionaire 😛 It’s all about being patient and perseverant, I think. Yet… that shouldn’t stop us from enjoying ourselves from time to time, don’t you think? Life’s not all around the money but about just living it with what you have and saving a bit for a bad future.

    • This book erases all the stereotypes that come with being and becoming a millionaire. It reinforces the fact that you can achieve it, all you have to do is save. That’s also have a hard time saving because I love to enjoy myself. And what is money if you can’t spend it. But if you really want to retire comfortably, you will need to work hard and play later.

      • True true… I was educated that way, actually. Yet there are some times you should enjoy as well, or so I think 😛 I could be saving lots of money for later, or using a part of it to enjoy myself 😉

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