Money (How real millionaires live)
Posted on June 24, 2011 by balancej
This is a reblog
Do you want to know how real Millionaires live and follow it? My answer is yes; if your answer is the same, then the only things you need are a job, career, or vocation, discipline, and follow the next passage that’s written by Thomas Stanley and William Danko:
Who becomes wealthy? Usually the wealthy individual is a businessman man who has lived in the same town for all of his adult life. This person owns a small factory, a chain of stores, or a service company. He has married once and remains married. He lives next door to people with a fraction of his wealth. He is a compulsive saver and investor. And he has made his money on his own. Eighty percent of America’s millionaires are first-generation rich.
Affluent people typically follow a lifestyle conducive to accumulating money. In the course of our investigations, we discovered seven common denominators among those who successfully build wealth.
1. They live well below their means.
2. They allocate their time, energy, and money efficiently, in ways conducive t0 building wealth.
3. They believe that financial independence is more important than displaying high social status.
4. Their parents did not provide economic outpatient care.
5. Their adult children are economically self-sufficient.
6. They are proficient in targeting market opportunities.
7. They chose the right occupation.
Did you know most millionaire lives in a middleclass neighborhood and pay cash for their vehicles? One of the biggest misnomers about being a millionaire is that people think these folk live in the biggest house or own the flashiest and most expensive cars. Nothing can be further from the truth.
According to “The Millionaire Next Door”, about 80% of millionaires purchase their vehicles outright and the balance of them lease. Fifty percent of the millionaires that were surveyed by Thomas Stanley stated that they never spent more than $29,000 in their entire lives for a motor vehicle. “About one in five, or 20 percent, never spent more than $19,950. Eighty percent paid $41,300 or less to acquire their most expensive motor vehicle” (Stanley, 1996). So, what do these numbers tell us? One simple thing, most millionaires are wise with their money. Don’t get me wrong, there are millionaires who are flashy; the media love these types of millionaires. These types of millionaires are good for ratings. We spend our hard earned money trying to emulate this class of rich people; however the biggest difference between them and us, is they can afford to live that lifestyle and we can’t.
One way to know how much car you can afford is simply take your annual income and multiply it by 25 percent. If the total value of the car is more than 25 percent, then you simply can’t afford it. For example, if you make $100,000 a year, your car shouldn’t cost you more than $25,000. Also you should be able to purchase it on the spot with no payments! If you have to make a payment on something other than your mortgage or utilities, then you can’t afford it.