Want to Be a Millionaire?

Want to Be a Millionaire? "OK, so most millionaires aren't rock stars or scions of wealthy families, but surely they have high incomes, right? Think again. Their median annual income was a mere $131,000. So how did they become millionaires? The answer is so simple it sounds trite: 'They live well below their means.'"

This article is inspired by the book "The Millionaire Next Door", a summary of years of research with self-made millionaires. It should be required reading for every politician in America (when politicians talk about "taxing the rich", do you think of housewives rinsing out sandwich baggies to reuse them? Cause that's what happens in a lot of millionaire households.). Self-made millionaires are driving modest cars (IF they buy a Mercedes, they drive it for 10 years), living in middle-class homes, wearing inexpensive clothes and taking inexpensive vacations. But they put 20% of income into savings every payday, year after year, even if it means eating beans and reusing sandwhich bags to be able to afford to save.

For housing junkies, read the part about housing - the rich buy moderate homes in good school districts and send their kids to public schools. Who are the suckers paying top dollar for an elementary education they could get free and McMansion tract homes? The ultra-rich (top private schools), the poor, and the folks who can get grandma and grandpa to pay the freight. Unfortunately, grandma and grandpa are putting their grandkids' parents into the poorhouse, because the parents feel like they have to live like the classmates' parents - big gas-guzzling SUVs, McMansions, and all. So the parents whose kids go to private K-12 on grandma's nickel tend to have higher-than-average debt.

On the other hand, the book provides hope for Joe Sixpack. Cut your costs, boost your savings, and you, too, can join the list of Millionaires.