It’s not what you might think

I have been reading, with great delight, a book called “The Millionaire Next Door.” The information in this book is fascinating.

When you think of the rich, what stands out most about their lifestyle?

Is it your high consumption of possessions? In other words, do you think millionaires live in big, fancy houses, drive fancy cars, wear fancy suits?

If you watch television or any Hollywood production movie these days, you probably think that rich people live an extravagant lifestyle.

Interestingly, ask anyone, who is not rich, what they would do if given $10 million dollars. Most would immediately begin listing the material possessions he would purchase.

“I’d buy myself a new house, no, 2 or 3. Of course I’d get rid of my piece of shit Honda and buy a couple of Ferraris. I’d sure tell my dead boss where he could go! Buy new clothes, shoes, big screen TVs, oh yeah, nothing but the best! I’ll probably give some money to my family, especially my mom and dad…” These are some of the typical responses you might hear.

Well guess what? That is not at all the way most millionaires think, or live. The “bling bling” lifestyle you can imagine is a trap most Americans fall into. They believe that being rich means having nice things. The more you have, the bigger your house, the better the cars illustrate success.

That image couldn’t be further from reality.

The “bling bling” lifestyle can best be summed up as the “keeping up with the Joneses” lifestyle. It is the high-income middle classes who have been programmed to believe that this is success. “I’m a lawyer, I have to live in a nice house and drive expensive cars to give the image that I’m good at what I do.”

Now, I am not referring to any particular class or profession, however, this book has really opened my eyes. When she was 21, she too had that “keeping up with the jones” lifestyle. I thought that new cars, nice clothes, and flashy jewelry were a genuine sign of success. You know what, that’s how everyone, who made less money than me, thought too.

Because I had 3 new vehicles, new work trucks, good property, DEBT UP TO MY EYEBALLS, I seemed to be successful. “You can’t hide money,” they said.

What if the average self-made millionaire drove a pickup truck, lived in an average middle-class neighborhood, and owned a small plumbing business? What if he didn’t have any “bling bling” and would never spend more than $100 on a pair of shoes or $399 on a suit?

The truth is that most millionaires are not what you think they are. Accumulating wealth is not what you might think it is. Have you ever learned the difference between “realized” and “unrealized” income? How can someone who makes $84,000 a year have a net worth 10 times greater than someone who makes $330,000 a year?

Think about that for a while, more in another post.

To be hurt!

Ron

PS “Empty your bag to fill your mind, and your mind will fill your bag.” -Benjamin Franklin