Updated: Oct 7
Thanks to western movies and Instagram, Facebook, and po-o-p culture(i did that intentionally)//pop/, all of us have a very wrong idea of millionaires. So here I present you with 6 wrong ideas you probably have about millionaires.
1. They own large mansions, several sleek Porsches, and fly in their own private jets.
Fact: No, 70% of them do not.though some % might slightly vary year to year
Most of them are in fact dead frugal in their expenses.
source: google images
The press sensationalizes that very small proportion of Americans who purchase expensive shoes and related artifacts. Consider this news story about boxing promoter Don King, who spent two hours shopping for shoes in Atlanta. During that time,
Mr. King purchased 110 pairs of shoes from one store, for which he paid $64,100, tax included. His purchase topped the previous sales record for the store, held by MagicJohnson, who spent $35,000 during one visit. Mr. King's record purchase translates into an average of $582.73 per pair. How much did Mr. Kingpay for his most expensive pair? It was reported that a pair of alligator loafers cost him $850 (Jeff Schultz, "King Foots$64,100 Bill at Shoe Store," Atlanta JournalConstitution, June 4, 1995, p. 1).
Note that only 1 percent of the millionaires in our survey paid $667 or more for a pair of shoes. Mr. King's purchase of alligator shoes is rare even among millionaires. Nonetheless, popular media enjoy touting abnormalities in buying behavior. As a consequence, our youth are told that buying expensive items is normal behavior for affluent people. They are led to believe that the wealthy have a high-consumption lifestyle. They learn that hyper spending is the main reward for becoming affluent in America.//Millionare Next Door/David Beitler
Source: google images
Don't relate luxury to richness. This notion has very often led the public to luxuries rather than saving them.
2. They don't do work. They inherit all of it.
Actually...2/3rd of all millionaires are self-employed
Most millionaires didn't inherit their wealth and worked towards it over the course of their life. Sure, there are many rich people who are just rich cos of inherited wealth.
But 2/3 rd of millionaires are self-employed. This simply means as long as you work for someone else the chances for you to hit the millionaire checkpoint are darn low.
They accumulate and grow their wealth gradually. They live below their means . This means that they could live without a job for 30-40 years just from what they accumulated.
So don't be lazy. Work your ass off, for yourself
3. Their life is easy.
Oh please no! They have to deal with a lot of boring stuff.
How did the wife of a millionaire respond when her husband gave her $8 million
worth of stock in the company he recently took public? According to her
husband of thirty-one years, she said, "I appreciate this, I really do." Then she
smiled, never changing her position at the kitchen table, where she continued
to cut out twenty-five- and fifty-cents-off food coupons from the week's supply of
newspapers. Nothing is so important as to interrupt her Saturday-morning
chores. "She just does today like she always has done, even when all we
owned was a kitchen table... It's how come we/re well-off today. Made a lot
of trade-offs ... sacrifices early in our marriage."
In fact, they plan all their financial dealing beforehand and heavily invest. They deal with tax, law, accounts and all those stuff you probably convinced are boring. And Sometimes doing things that are not so entertaining also benefit.
Why didn't you know this? Because the boring and normal life of the millionaire next door never entertains mainstream tv audiences.The ones you know are the lucky minority.
Maybe you will never know that there was a millionaire living right next to your door.
Do buy Millionaire Next Door by David Beitler for more information. (Yep, I used it. It's amazing.https://www.amazon.in/Millionaire-Next-Door-Surprising-Americas/dp/1589795474).
I used the links:
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