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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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To: TexasFreeper2009

How did you pay up those speeding tickets and avoid arrest? I’m sure we’d all love to know.


21 posted on 02/28/2014 3:44:39 PM PST by miss marmelstein (Richard Lives Yet!)
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To: TexasFreeper2009
But besides that, I was given nothing. I am 100% self made.

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!!!

22 posted on 02/28/2014 3:48:12 PM PST by abb
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To: expat_panama
The definitive book on this subject is The Millionaire Next Door by Thomas J. Stanley and William D. Danko.

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.

23 posted on 02/28/2014 3:55:13 PM PST by Arm_Bears (Shoot cops that shoot dogs.)
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To: expat_panama
My awesome brother had the same life I did...mostly single parent during formative years. We've have had typical relationships with both parents to this day. He didn't ever want to poor like we were, we weren't that poor. He bought his first house as an undergrad at U of MD. Charged rent to others to pay the mortgage. It wasn't easy for him, credit suffered.

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.

24 posted on 02/28/2014 4:07:08 PM PST by BreezyDog
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To: expat_panama
The 2nd Quarter FReepathon Starts April 1st


Click The Pic To Donate

Donate

25 posted on 02/28/2014 4:10:56 PM PST by DJ MacWoW (The Fed Gov is not one ring to rule them all)
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To: DJ MacWoW

Thank you so much, DJMacWoW!!

We need to complete THIS FReepathon NOW!


26 posted on 02/28/2014 4:12:05 PM PST by onyx (Please Support Free Republic - Donate Monthly! If you want on Sarah Palin's Ping List, Let Me know!)
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To: al baby

Echo that; a million bucks doesn’t go very far anymore.


27 posted on 02/28/2014 4:24:13 PM PST by Jack Hammer
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To: Little Bill
A million is not what a million was.

Mine has been printed in half.
28 posted on 02/28/2014 4:41:49 PM PST by sasquatch
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To: All

Now that the trading week is over, anybody have any thoughts on the Ukraine?? Stock wise? Potash? Any changes a person canprofit off of?


29 posted on 02/28/2014 4:49:22 PM PST by BipolarBob (Don't get bit in the arse by a sasquatch switch to DirecTV.)
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To: miss marmelstein

mail


30 posted on 02/28/2014 4:57:00 PM PST by TexasFreeper2009 (Obama lied .. the economy died.)
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To: miss marmelstein

oh, and I think I took some defensive driving course (it’s been 20 years)


31 posted on 02/28/2014 4:57:53 PM PST by TexasFreeper2009 (Obama lied .. the economy died.)
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To: TexasFreeper2009

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.


32 posted on 02/28/2014 5:03:07 PM PST by proxy_user
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To: TexasFreeper2009

I’d like to subscribe to your news letter.


33 posted on 02/28/2014 5:41:05 PM PST by The KG9 Kid
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To: The KG9 Kid

No need for a newsletter, just see post 22


34 posted on 02/28/2014 5:56:46 PM PST by TexasFreeper2009 (Obama lied .. the economy died.)
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To: expat_panama

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.


35 posted on 02/28/2014 6:03:28 PM PST by Pollster1 ("Shall not be infringed" is unambiguous.)
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To: Little Bill

you have to save and invest in the stock market like the dickens, cash money funds just won’t do it.


36 posted on 02/28/2014 6:16:55 PM PST by RalphC.
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To: TexasFreeper2009

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.


37 posted on 02/28/2014 7:46:18 PM PST by SgtHooper (If at first you don't succeed, skydiving is not for you.)
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To: expat_panama

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.


38 posted on 03/01/2014 7:14:22 AM PST by Lurkina.n.Learnin (This is not just stupid, we're talking Democrat stupid here.)
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To: expat_panama

almost all people are NOT going to have a million dollars saved not including pension or SS...its not going to happen....


39 posted on 03/01/2014 11:09:07 AM PST by cherry
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To: SAJ

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!


40 posted on 03/01/2014 12:39:58 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: TexasFreeper2009
...Nearly every millionaire I ever met owned their own business....

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...

41 posted on 03/01/2014 12:52:24 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: TexasFreeper2009
...had an edge over those who may have never been thought right from wrong...

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".

42 posted on 03/01/2014 12:59:17 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: SeekAndFind
...Not only is envy irrational, it’s socially and personally corrosive...

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.

43 posted on 03/01/2014 1:13:34 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: BipolarBob

any gas companies providing to EU


44 posted on 03/01/2014 1:20:50 PM PST by reed13k (For evil to triumph it is only necessary for good men to do nothings)
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To: expat_panama

I miss your daily finance threads.


45 posted on 03/01/2014 1:22:06 PM PST by abb
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To: Arm_Bears
...definitive book on this subject is The Millionaire Next Door by Thomas J. Stanley and William D. Danko....

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.

46 posted on 03/01/2014 1:22:37 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: RalphC.
I totally agree, the main thing is getting out. I got divorced in 1996 and I was dead broke. I rode the dot com bubble and cashed out before the crash. Paid off all my debts.

I then played the market until the Obama Crash, got out before that happened, worked well.

47 posted on 03/01/2014 1:22:51 PM PST by Little Bill
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To: abb

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...


48 posted on 03/01/2014 1:40:40 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: SAJ
Nice ta see ya back, Pete!

Ya!

49 posted on 03/01/2014 1:40:40 PM PST by Aliska
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To: expat_panama

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.


50 posted on 03/01/2014 5:47:33 PM PST by RWB Patriot ("My ability is a value that must be earned and I don't recognize anyone's need as a claim on me.")
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