Skip to comments.The 6 Biggest Myths About Millionaires
Posted on 02/28/2014 2:33:44 PM PST by expat_panama
Many people believe that while itd certainly be nice theyll never become millionaires. That its an utterly unattainable dream.
The truth is: Hitting the $1 million mark is more attainable today than ever and more important. Thats because, in order to live comfortably in retirement through your eighties, many people will need a nest egg of at least $1 million.
A general rule of thumb is that you need to save $1 million for every $40,000 of annual income you need to replace at retirement, not including Social Security, pension income or any other retirement income, says David Fernandez, CFP, of Wealth Engineering in Scottsdale, Ariz.
Fortunately, there are a lot of ways to do it. While doing research for my book, The Eventual Millionaire, I interviewed more than 100 millionaires who came from all walks of life and made their first million in dozens of different ways, from starting their own businesses to investing in the stock market or real estate. And those arent the only paths to becoming a millionaire, either: Others hit the mark by simply living below their means and saving portions of each paycheck.
(Excerpt) Read more at businessinsider.com ...
Being a millionaire today is not a big deal at all in fact very easy now being a billionaire is like yesteryears millionaire
Spoiler alert --here are the six myths:
1. Millionaires Are Smarter
2. Millionaires Are Just Luckier
3. Millionaires Live Lavishly
4. Most Millionaires Were Born Into Money
5. Millionaires Have to Be Fearless
6. They Earn Million-Dollar Paychecks
This is actually great news because it means that all of us not-so-smart bum-luck cowardly low-born cheapskates in crummy jobs really have a chance after all!
First a millionaire used to be somebody who had $1 million in assets. Then, $1 million net worth. Then, $1 million net worth excluding primary residence. Then, $1 million in net investable assets. The dollar is so weak and assets are so inflated, that I don’t consider anybody a true millionaire unless he earns more than $1 million/year.
True; these days living in a ‘million-dollar home’ means ‘wrong side of the tracks’. Just the same, we still hear the loopy-left griping about wanting tax hikes for the millionaires...
easy, earn two incomes and live on one. You just have to ignore all the advertising meant to make you feel bad for being cheap.
I am a self made multi millionaire and can attest to this articles truthfulness
And I will ad one personal observation. Nearly every millionaire I ever met owned their own business. And it doesn't seem to matter what kind of business as long as they do what they do well.
I used to deal with a lot of wealthy as well as formerly wealthy people.
From my experience I would guess they tend to be risk takers, honest with their dealings with fellow businessmen but sometimes crooked otherwise.
I would say they were very hard workers and that is one I am certain of. They tend to live modestly but not to the extent of miserliness. Not smarter than your average person but no dummies either.
Nice ta see ya back, Pete!
In my early 20’s I had a negative net worth, had no assets except a car I owed more on than it was worth, I had multiple warrants out for my arrest for failure to pay speeding and no insurance tickets, dabbled with illegal drugs, and had dropped out of jr college with no degree and was a waiter at a Mexican restraint chain barely able to pay my rent.
20 years later I am a multi-millionaire with a masters degree who owns his own business.
I just woke up one day and said.... ENOUGH! I am going to fix my life and set out the next day to do so.
It was actually quite easy. I KNEW everything I was doing wrong, I had just chosen to do the wrong things. I guess in that regard I may have had an edge over those who may have never been thought right from wrong. But besides that, I was given nothing. I am 100% self made.
meant taught not thought
Jealousy causes more widespread misery than anything else.
An old Russian joke tells about a poor peasant whose better-off neighbor has just gotten a cow. In his anguish, the peasant cries out to God for relief from his distress. When God replies and asks him what he wants him to do, the peasant replies, Kill the cow.
One of the most consistent findings of behavioral economics is that we gauge our own economic well-being by comparing ourselves with our neighbors. Studies have found that, given a choice between making 25 percent more than their neighbors or making 25 percent less, people will choose the former even when the latter amount is more money.
Not only is envy irrational, its socially and personally corrosive. In his wonderful book, The Seven Deadly Sins, the late Henry Fairlie called envy the nastiest, the most grim, the meanest of the seven deadly sins. Sneering, sly, vicious. According to Fairlie, the face of envy is never lovely. It is never even faintly pleasant.
It could hardly be otherwise. Loving your neighbor, or even working alongside him, is next to impossible when you regard his gains as a personal loss.
The problem is this -— We have actually ELECTED many ENVIOUS people into office who actually REFLECT our own character.
That's true of the "original" millionaires, but not for those who inherited their wealth. I had the displeasure of selling a property last year to the daughter of a billionaire, and that was a horrible process. This woman felt so entitled, and indeed she was because she was able to bully us using her lawyers. Fortunately, she overpaid by about $800K, so I don't feel so bad about it now.
I love your choice of the word “earns”
Obama begs to Differ "you din't build that "
A million is not what a million was.
So, knowing that, it depends on “when” “what it used to be” was.
so it would take ruffly 2 million to equal 1 million 20 years ago, and 4 million to equal a million 40 years ago (this is just a ruff rule of thumb)
How did you pay up those speeding tickets and avoid arrest? I’m sure we’d all love to know.
Just damn. You mean that if you work hard, have self-discipline, are reasonably thrifty, and make intelligent life choices, you can be successful and have a reasonably secure life? This is a revelation!!! I mean, the Grasshopper and the Ant in real life!!!
It explodes a lot of the stereotypes, and myths, about millionaires. Even better, it provides a roadmap for anyone who wants to achieve financial independence. I've followed the suggestions to good effect.
Bought copies for both of my twenty-something sons and am pleased that they have taken it to heart.
He graduated with an econ/poli science degree. Went to work for a real estate developer as a property manager. Met management and then formed a goal. While working he went to Johns Hopkins and got a masters in Real Estate. That was easy, right?
Keeping the eye on the ball, he and his new wife quit their jobs and went back to school...They racked up $350,000 in student loan debt. He got his MBA at North Carolina and she went to Wake Forest for her Law degree, finishing at Emory because his new job took him to Atlanta. For brevity's sake they had their student loans paid off in two years going back to work for the same real estate company he started with...almost 20 years later...they have more money than they know what to do with and all of the stuff that goes with it. GOOD FOR THEM! The American dream, to the max.
Thank you so much, DJMacWoW!!
We need to complete THIS FReepathon NOW!
Echo that; a million bucks doesn’t go very far anymore.
Now that the trading week is over, anybody have any thoughts on the Ukraine?? Stock wise? Potash? Any changes a person canprofit off of?
oh, and I think I took some defensive driving course (it’s been 20 years)
Nope, I never had my own business. Just worked an ordinary job and saved and invested. The stock market between 1982 and now could really make you rich if you know what you’re doing. Unfortunately, I didn’t really understand investing until I’d been doing it for 20 years.
I’d like to subscribe to your news letter.
No need for a newsletter, just see post 22
Becoming a millionaire is easy:
1. Start with $3,000,000 in 2008 and watch it dwindle after five years under a socialist government, or
2. Spend less than you make and work hard.
you have to save and invest in the stock market like the dickens, cash money funds just won’t do it.
Congratulations!! You deserve every penny!! I hope you can pass that on (the drive and long-term thinking) to the youth of today in some way.
Glad to hear from you again. I hope you have been well. I think millionaires are just like regular people. Some are really good people and some can be real a-holes.
almost all people are NOT going to have a million dollars saved not including pension or SS...its not going to happen....
Thanks Stu! —was just thinking about how nice it was to have you up here a while ago and it’s getting to be time that I’d be grateful for your thinking out loud with me again.
Of course, you got a nice place too, cool & quiet, but dang —you’re in fly-over-country!
It sure as hell works for me; for decades my income depended upon my having to convince others that I was doing a great job, but all I have to do now is the great job and it's sooo much easier...
Too many damn TV shows always want to make the rich look like a bunch of crooks but in real life the liars, cheats, and thieves are more often than not the poor. Folks with no self restraint tend to grab what they can, they fail, and then they blame all their misery on Obama's "millionaires'n'billionaires".
It's also evil, as in 'satanic'; the old testament bans it by commandment the new one very clearly spells out the importance not bitchin' about 'equal pay scales'. imho America's past greatness has been a direct result of the choice of piety before pretention, and we risk a lot by electing advocates for class hatred.
any gas companies providing to EU
I miss your daily finance threads.
The Millionaire Next Door by Stanley Ph.D., Thomas J. (Nov 30, 2010)$9.99 Kindle Edition
Great book! Then again, here's the torrent to get it for free.
I then played the market until the Obama Crash, got out before that happened, worked well.
lol —you’re very kind, made me run right back and make up a new thread page for next Monday. Now I’m exhausted; please wake me up in time to post it...
I’d like to believe I could be wealthy one day (by that, I mean I could actually enjoy a good retirement), but frankly, watching what our politicians are doing, I think my chance has passed. The dollar is virtually worthless, government is getting more and more control over one’s private life (and they just got a free pass to tax you for just about anything), there are more looters than producers now and the looters have government behind them, there are more businesses going under than are being created, and we’ve all but rolled over and shown our bellies to the people who desire nothing less than our complete destruction.
Hate to sound so pessimistic, but A is A. I don’t see things changing as they need to anytime soon, so optimism is becoming a luxury I can’t afford.