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The 6 Biggest Myths About Millionaires
Business Insider ^ | Feb. 27, 2014 | Jaime Tardy

Posted on 02/28/2014 2:33:44 PM PST by expat_panama

Many people believe that — while it’d certainly be nice — they’ll never become millionaires. That it’s an utterly unattainable dream. 

The truth is: Hitting the $1 million mark is more attainable today than ever — and more important. That’s 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 aren’t the only paths to becoming a millionaire, either: Others hit the mark by simply living below their means and saving portions of each paycheck. 

[snip]

(Excerpt) Read more at businessinsider.com ...


TOPICS: Business/Economy; Culture/Society; News/Current Events
KEYWORDS: economy; investing; stockmarket
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1 posted on 02/28/2014 2:33:44 PM PST by expat_panama
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To: expat_panama

Being a millionaire today is not a big deal at all in fact very easy now being a billionaire is like yesteryears millionaire


2 posted on 02/28/2014 2:36:42 PM PST by al baby (Hi Mom… I was refereeing to Obama)
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To: abb; Abigail Adams; abigail2; Aliska; Aquamarine; B.O. Plenty; BenLurkin; bert; BipolarBob; ...

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!

3 posted on 02/28/2014 2:41:51 PM PST by expat_panama (Arguing with those who have renounced reason is like giving medicine to the dead. --Thomas Paine)
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To: al baby

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.


4 posted on 02/28/2014 2:44:00 PM PST by clintonh8r (Don't twerk me, Broi)
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To: expat_panama
Except you. ;)

/johnny

5 posted on 02/28/2014 2:44:44 PM PST by JRandomFreeper (Gone Galt)
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To: al baby

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...


6 posted on 02/28/2014 2:44:55 PM PST by expat_panama (Arguing with those who have renounced reason is like giving medicine to the dead. --Thomas Paine)
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To: al baby

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.


7 posted on 02/28/2014 2:44:55 PM PST by AdSimp
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To: expat_panama
Very good article.

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.

8 posted on 02/28/2014 2:50:40 PM PST by TexasFreeper2009 (Obama lied .. the economy died.)
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To: expat_panama

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.


9 posted on 02/28/2014 2:52:45 PM PST by yarddog (Romans 8: verses 38 and 39. "For I am persuaded".)
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To: expat_panama

Nice ta see ya back, Pete!


10 posted on 02/28/2014 2:57:47 PM PST by SAJ
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To: expat_panama

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.


11 posted on 02/28/2014 3:00:12 PM PST by TexasFreeper2009 (Obama lied .. the economy died.)
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To: TexasFreeper2009

meant taught not thought


12 posted on 02/28/2014 3:01:37 PM PST by TexasFreeper2009 (Obama lied .. the economy died.)
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To: expat_panama

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, it’s 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.


13 posted on 02/28/2014 3:02:30 PM PST by SeekAndFind
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To: TexasFreeper2009
Well done! You are the American Spirit. Thank you for posting.
14 posted on 02/28/2014 3:04:09 PM PST by Chgogal (Obama "hung the SEALs out to dry, basically exposed them like a set of dog balls..." CMH)
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To: yarddog
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.

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.

15 posted on 02/28/2014 3:05:06 PM PST by Cementjungle
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To: expat_panama

BTTT


16 posted on 02/28/2014 3:05:28 PM PST by Chgogal (Obama "hung the SEALs out to dry, basically exposed them like a set of dog balls..." CMH)
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To: clintonh8r

I love your choice of the word “earns”


17 posted on 02/28/2014 3:09:45 PM PST by al baby (Hi Mom… I was refereeing to Obama)
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To: TexasFreeper2009
I am 100% self made

Obama begs to Differ "you din't build that "

18 posted on 02/28/2014 3:13:15 PM PST by al baby (Hi Mom… I was refereeing to Obama)
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To: TexasFreeper2009

A million is not what a million was.


19 posted on 02/28/2014 3:18:02 PM PST by Little Bill
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To: Little Bill
A ruff guide on inflation is that it makes a dollar worth 50 cents every 20 years or so

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)

20 posted on 02/28/2014 3:37:00 PM PST by TexasFreeper2009 (Obama lied .. the economy died.)
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