What's the first thing that comes to mind when you think of a millionaire? A Porsche? A Rolex? A private jet to Dubai? Sure, such millionaires do exist, but they are the exception rather than the rule. The idea of the rich “Wolf of Wall Street” is an illusion. Thomas Stanley and his co-author William D. Danko show this in their book. They asked hundreds of millionaires what their everyday lives are like, how they live and what is important to them in life. They meticulously recorded and analyzed these results. The results are as astounding as they are surprising. Find out why.
So what did the two authors find out? In their bestseller, they analyzed and scrutinized various points and discovered that many people live alongside millionaires without knowing it because they lead such a modest lifestyle. Hence the title of the book. Today I'm presenting the most interesting points to you:
Financial freedom > Status symbols
Don't look rich, be rich!
The vast majority of millionaires surveyed live by this motto. They are able to maintain their current standard of living. Unlike the millionaires we know from Hollywood or Netflix, they do not spend 90% of their income per month on their luxury villa or luxury goods. They are therefore much more financially stable and freer than those who invest their salary in status symbols. They do not attach importance to living in expensive neighborhoods, driving a Lamborghini or always flying to the most exotic vacation destinations.
Robert Kyozaki goes one step further in his book “Rich Das Poor Dad” and describes this phenomenon in more detail by distinguishing between wealth and richness. Those who are wealthy can maintain their lifestyle for a long time without their income. Those who are “rich” may have a higher income, but can maintain their lifestyle for a maximum of two months without income.
Frugalism
What does this word even mean? They live modestly and invest every euro they can spare¹. In other words, they live below their means. However, movies give us a false perception of what it actually means to be “rich”. Frugalism allows you to invest and spend your money wisely, not out of pure status. True to this credo, the millionaires interviewed live
Cars
The two authors asked many millionaires which car they drive. They found out that most millionaires drive a Toyota. They also asked them why they chose this car. Most of them said that they bought a used car because they wanted to get a bargain and they see it as an exciting challenge to get the best possible bargain.
Planner
The millionaires surveyed use their time, energy and money wisely. They regularly monitor their finances. There are many advisors who recommend adopting these habits. Brian Tracy also emphasizes the importance of setting goals and writing them down.
Marriage
When choosing a partner, millionaires often look for a partner with similar money management habits. If the partners have very different habits, there are many points of conflict. However, if both are on the same wavelength, they can pool their financial resources.
Contentment
Good health, longevity, happiness, a loving family, self-confidence, good friends... if you have five of these, you are a rich man.
We always want more and believe that we will be better off if we have more money. But millionaires appreciate what they already have and are grateful for it. They have worked hard and given their investments time for compound interest to kick in, and they know what it means to work hard and make smart decisions.
Sometimes less is more.
“Millionaires are usually people like you and me”
Overall, I found the book exciting and with very valuable insights into the lives and thoughts of real millionaires. I was particularly impressed by how much empirical data the two authors collected. This shows how well the authors have dealt with the topic (the survey was conducted over several years).
However, it is also clear that the two are not writers. The book is not written in a very appealing way and is sometimes a little slow. It is written very scientifically in places and is more reminiscent of a doctoral thesis than a book. The statistics are quite good, but the book is rather dry and ponderously written. Also, it's probably intended more for the US population, people living elsewhere can skip a few pages. And the book was written a few years ago, you can tell by the examples and the general feel of the book.
Nevertheless, we can recommend the book. The key messages are really valuable and help to understand that financial stability is more important than status symbols.
Mindfulness Score: 6/10
If this article has given you food for thought, take a look here! See for yourself and form your own opinion :)
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