Characteristics of Millionaires - The Millionaire next door

Traits of Millionaires

When you ask people, "What does a millionaire look like?", the response is not going to be "the average Joe".

Most people still perceive the wealthy as being flamboyant and flashy, living in megamansions, driving the most expensive cars, and wearing the most expensive clothes.

There are those that do fall into that category, but they are the minority. In truth, the majority of millionaires fly under the radar.

How many millionaires are there

A survey conducted by Spectrum Group, in 2009, determined that there were 7.8 million households with a net worth of $1 million or more, exluding their primary residences.

With the number of US households projected to be around 115,000,000, that means that approximately 1 out of every 15 households, is a millionaire.

To put it in perspective, you figure that the average small subdivision is 50-60 houses and the average large subdivision is 150-175. That means that there are approximately 3-4 millionaires in a small subdivision and 10-12 in a larger subdivision.

On your way home tonight, as you are driving through neighborhood, stop at every 15th house. That could be a millionaire.

What They Don't Do

Habits of a Millionaire

Many people have an idea in their mind of what a millionaire looks like and how they act. The public's idea of what a millionaire does is pretty far off the mark. Here are a few things that you won't see the average millionaire do.

1) They do not buy brand new cars.

2) They do not buy designer or custom made clothes.

3) They do not carry a monthly credit card balance. (In fact some may not use credit cards at all)

4) They do not eat out all the time.

5) They do not fly first class.

Money Saving Tips

What They Do

How Millionaires save

Here are some of the things the "millionaire next door" will do.

1) They will drive a late model car, like a 10 year old sedan.

2) They will "brown bag" their lunch most days.

3) They will clip coupons.

4) They will take the bus.

5) They will fly coach.

6) They own a modest home and live in the same home for 20+ years. (Typically, the home is paid off)

7) They typically own their own business or are self employed.

8) They live far below their means.

9) They prefer cheese and crackers to cavier and pate.

10) They purchase used or refurbished appliances and electronics.

Source

Anyone Can Be a Millionaire

The millionaire next door is typically a first generation millionaire. What this means is they didn't inherit their millions, or be born into an already wealthy family. They created their wealth on their own.

Anyone can be a millionaire, you just need to have discipline, have a plan and stick to it, and not be get wrapped up in the glamorous millionaire lifestyle that the media portrays.

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Efficient Admin profile image

Efficient Admin 4 years ago from Charlotte, NC

I have read "The Millionnaire Next Door" and it was an exceptionally interesting book which details how some millionnaries live frugal and don't feel the need to flaunt their wealth. It is an excellent read. Thanks for sharing, voted up.

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