Real millionaires do not ….
The millionaire next door does NOT:
- Use Time as a Measurement for Success – The millionaire next door measures success based on output quality, the results. The amount of time spent on something means nothing if the results do not meet the expectations.
- Buy Brand New Cars – Why would anyone pay the full retail price worth half a year’s salary for the fastest depreciating asset on Earth? We are brainwashed!
- Carry a Monthly Credit Card Balance – Carrying a monthly credit card balance only makes sense if you enjoy poverty. Monthly interest payments can add up to hundreds of rands over the course of a year. Do not buy “stuff” right now that you cannot afford to pay for in cash right now!
- Eat Out on a Regular Basis – Preparing your own food is already expensive enough. If you eat out you will pay triple the price. If done on a regular basis you will waste a few thousand rands a year.
- Think He Knows It All – People who think they know it all stop learning and thus become unaware of new opportunities. Once you lose awareness, you lose.
- Socialize with People Who Waste Money – The people you socialize with influence your habits. It is impossible to save money if you constantly hang around people who blow it all.
- Desire Instant Gratification – You have to think long-term to attain long-term success. The millionaire next door desires long-term deferred compensation over instant gratification.
- Pay Retail for Name Brand Clothing – You can easily save hundreds of rands a year on clothing purchases by waiting for sales or shopping at discount retailers. Better yet, avoid name brand clothing all together.
- Keep His Money in a Cheque Account – If you want to increase your wealth you have to set your money up to make more money. Most cheque accounts yield little to nothing in interest. Think long-term (5 years +). Invest in quality stocks, bonds and mutual funds, especially those with high yield dividends and interest. Or buy some land in an area with growth potential.
- Replace What is Not Broken – The millionaire next door fixes things. Fixing something is usually significantly cheaper than buying a brand new replacement, especially if you fix it yourself.
- Impulse Buy – Impulse buying wastes money and leads to a cluttered house full of “stuff” you don’t need or use. If you see something you like at the mall, walk away. Think on it for a day or two. If it still holds value in your mind, maybe it’s worth buying. Never buy something the first time you see it.
- Waste Time on Senseless Activities – They say time is money. In actuality, time is far more important than money. Time is your life. If you waste it, you will fail.
From: The millionaire next door by Stanley and Danko