The Millionaire Next Door

"The Millionaire Next Door" is the title of a best-selling book published around 1990. The book was the result of research on how everyday people became wealthy. The book outlined the habits of self-made millionaires (those with a net worth of at least $10 million).

The book revealed the fact that self-made millionaires are frugal and tend to live simple lives. Contrary to the way they are portrayed in the media, the typical millionaire is not a doctor or lawyer; he is a self-employed person who works at least 60 hours a week in his own small business. He might run a very unglamorous business, such as an automobile junkyard. He also drives a six-year old vehicle (the most popular, a Ford pick-up); does not accumulate debt; shops for bargains; lives in a home well below his means (upper middle class); and invests his money in mutual funds and other types of relatively safe investments and watches it grow over time.

The typical millionaire is not interested in "keeping up with the Jones'." They don't have 100 pairs of shoes or a late model, expensive car. They don't buy designer clothes or spend $100 for a haircut. His neighbors and friends would never guess he was a millionaire unless he told them.

Most importantly, the typical millionaire develops a budget and financial plan and sticks to it religiously.

If you want to have real wealth instead of the appearance of wealth, stop spending your money on things designed to impress other people, and adopt the habits and values of those who are truly rich.

Develop a realistic budget and stick to it. Your ultimate goal is to start saving as much money as you possibly can and investing it wisely. Over time, you will get out of debt and start building real wealth.