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They spend on things that hold value and save in areas that do not. True self-made millionaires, are actually quite frugal.Even still, they did not take all of the credit for their success. These millionaires worked hard, made wise decisions, persevered when times were difficult, and were frugal. I don’t think that’s the case and neither did the authors. Almost all of the millionaires interviewed in the book accredited some of their net worth to pure luck. That is how we determined our retirement accounts. My husband and I are very risk adverse, but we have pushed ourselves to invest in ways that felt safe for us. The millionaires interviewed for the study emphasized that you need to take smart risks to get ahead. They take risks, but only after thought and research.
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However, millionaires don’t spend money or invest because of trends. Owning a business or investing in real estate is not for the risk adverse. This prompted my husband and I to add owning a rental property to our longterm financial goals. That’s not to say you can’t get raises or that working for someone else is bad, but many millionaires own assets that make them money beyond what one would typically achieve in only a 9 to 5. You can grow a business or your investments, like real estate, in ways that you can’t necessarily grow when working for someone else. Sure, having a good job matters when building your wealth, but you have more control over something you own. Reading this book showed me the importance of making money outside of a 9 to 5. Millionaires own income producing assets.I still strongly encourage you to read it as different takeaways than what I share may resonate more with you. As someone who works in research, I greatly value that the habits and tips shared in this book are based on evidence, not opinion.īelow are my main takeaways. There have been follow-up studies that uphold the initial findings. It was written based on a study in the 80s, but I believe (as do others) that the general habits and advice still ring true today. The Millionaire Next Door is a book that chronicles the money habits of self-made millionaires. I am certainly not the first to talk about the wonders of this book, but it has impacted me so profoundly that I absolutely must pay it tribute. Nothing has impacted my thoughts about money more than reading The Millionaire Next Door. Although I disagreed with some of what I read, I always found something that I could take away. Books Dave Ramsey (who I didn’t fully agree) and Suze Orman made my list, among many others. I knew I never wanted my family to be in that situation of owing so much money again (aside from a mortgage, and even then…). It was my mission to read and learn as much as I could. Throughout our debt repayment journey, I looked for inspiration to help us better manage our finances.