Your Average Millionaires Have Surprisingly Simple Living Habits
You have undoubtedly heard about the billionaire living in a ordinary home? Warren Buffett, estimated by Forbes to be worth $75.6 billion lives in a discreet Omaha area in a home he bought for about $31,500 way back in 1958 and is currently valued at $850,000. Our idea of millionaires is that they live in sprawling beachfront bungalows exceeding 3500 square feet. For most people, a $850,000 home is something they can only dream about. But a property like that, occupied by one of the richest men in the world is just uncharacteristic and downright surprising.
Warren Buffett can afford to buy any mansion in the world, cash down, but he opts to live in a relatively small and modest house in Omaha. Why would he do that? According to The Millionaire Next Door, a book by author Thomas Stanley, 80% and more of U.S. millionaires are just ordinary folks who have accumulated most of their wealth in that one-generation, and know how to keep it. The book states that most millionaires neither look nor live up to the part. With a majority of them living in middle-class, normal neighborhoods and driving around in very modest cars. What can we learn from these tycoons like Warren Buffett, who fail to live the stereotyped existence of a millionaire? Here are some common traits which moneyed people share, as says Stanley;
They are avid readers
Former US President Harry Truman had said that all readers may not make for leaders, but all leaders must necessarily be readers. In his book Stanley confirms that the typical millionaire reads at least one book (non-fiction) every month. You understand that millionaires become rich due to their relentless desire to learn. Books on biographies and leadership are more essential than watching the latest episode of a mindless reality show. If they have any free time to themselves, they use it productively and wisely by reading.
They comprehend delayed gratification
It is true that the average millionaires purely spend most of their lives sacrificing short-term desires for a long-term attainment. They may buy an used or an older model car, live in an unassuming neighborhood, and wear inexpensive garbs. The whole trying to keep up with the Joneses is really not their priority.
Such lifestyle choices allow them to save for worthy future investments such as retirement, college education or even a hefty down payment to fund their dream home. It seems that they realize that although instant gratification is always great fun, but by delaying gratification, one benefits many times over. Today’s sacrifices enable them to plan for tomorrow’s success.
They remain debt-free
The average millionaireis totally averse to the idea of debt being a tool. If they need something they cannot afford, they prefer to save and later pay for it with cash. Their financial plan just does not include, student loans, car installment payments, financing plans and that is their secret with money. They owe nothing to any bank or financial institution, so every dollar earned, remains with them to use, save, and give. Debt is the single largest hindrance to building wealth. Keep away from debt whenever you are tempted.
They budget carefully
Your budget is basically your financial plan, and you cannot create a net worth of one million dollars or more without some plan. You construct a house by first starting with the foundation; you build affluence by commencing with the basic budget. And thereafter you keep following the plan. Even while making tons of money, you never stop managing the wealth created. The typical millionaire has resorted to a habit of monthly budgets. They know how much money is coming in and what is spent from their bank account. Even today, many millionaires draw up budgets, something which they probably started doing decades ago and it comes rather naturally to them.
They learn to give
Some rich people are selfish jerks. But most millionaires living down-street without giving off vibes about being wealthy, have helping hands and donate to worthy causes such as church tithes, meaningful charities, or just helping family and friends on occasions; these people have a genuine and caring spirit. They realize that their wealth can help others and that actually motivates them to further build their wealth. They know their inability to carry it with them when they pass on. But instead of frivolous spending, they work to leave behind a solid legacy for people who mean much to them.
Wealthy people living in ivory towers or wearing $500 jeans are a total myth. Being a success with wealth comes easily by living a modest lifestyle and following some basic principles. Warren Buffett will testify to this.
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