The Millionaire Next Door

Wealth is rarely gained through the lottery, with a home run, or in quiz show fashion. But these are the rare jackpots that the press sensationalizes.

Why do I continue to write about rich people? It is not for the benefit of rich people! What I write is designed to enlighten those who are confused and misinformed about what it means to be rich. Most Americans have no idea about the true inner workings of a wealthy household.

Gift receivers… the adult children of the affluent feel that their parents’ wealth/capital is their income… income to be spent.

How many generations does it take for an ancestry group that today contains thousands of Victors to become Americanized? Only a few. Most move into the “American normal” range within one or two generations. This is why America needs a constant flow of immigrants with the courage and tenacity of Victor. These immigrants and their immediate offspring

Wealth is more often the result of a lifestyle of hard work, perseverance, planning, and, most of all, self-discipline.

Wealth is not the same as income. If you make a good income each year and spend it all, you are not getting wealthier. You are just living high. Wealth is what you accumulate, not what you spend.

Remember, expensive homes are typically located in what we call high-consumption neighborhoods. Living in such neighborhoods requires more than just being able to pay the mortgage. To fit in, one needs to “look the part” in terms of one’s clothing, landscaping, home maintenance, automobiles, furnishings, and so on.

They became millionaires by budgeting and controlling expenses, and they maintain their affluent status the same way.

All too often financial advisors have a narrow focus. They sell investments and investment advice. They don’t teach thrift and budgeting. Many find it embarrassing, even degrading, to suggest to clients that their lifestyle is too high.