The Millionaire Next Door
I think it should be a requirement for everyone in high school to take a course in money management. I have long been a believer that if you always live below what you make you will be able to retire debt free and with money in the bank.
But the book “The Millionaire Next Door” goes one step further by saying you can actually become a millionaire.
How?
Budget – Set a limit and stick with it.
Plan – as much as a year in advance for buying high end products such as a car so you can research and pick the best for your needs
Live a simple life – you buy the car that is dependable rather then has the most bells and whistles.
Take graph paper and draw a line where your income is. Next draw a line ten or twenty percent below it and that is where your spending should be. Easy? Again it’s the mindset. You must believe that financial independence is more important than high social status.
I read this book a while ago and was recently reminded about it. Everyone should read it. It sites many stories about people who were not born wealthy nor have exotic jobs but have become millionaires all on their own.
Most of the truly wealthy don’t live in Hollywood or on Park Avenue they live next door. I remembered after I read it wondering if any of my neighbors could actually be millionaires. I couldn’t tell because all of them seemed like everyone else which was just like the book described.