from daveramsey.com on 02 Jun 2010
When we think of millionaires, we envision the lifestyle of a Hollywood movie star. We think of big houses, fancy cars, and "champagne wishes and caviar dreams."
But here's the secret few people know: Most millionaires don't live a Hollywood lifestyle. Most millionaires are people just like you who work hard, don't live in fancy houses, and drive used cars. In fact, you never would guess that they were millionaires.
It's true. A research study conducted by Dr. Thomas Stanley and Dr. William Danko revealed this fact in their book, The Millionaire Next Door. The findings by the two researchers support what Dave has said for years: your biggest wealth-building tool is your income. It almost sounds too simple, but it's absolutely true!
Right now you might be saying to yourself, I work hard and have a steady income. Why am I not a millionaire? The answer might be that you spend more than you make. If that's true, you're essentially giving your money to someone else so they can become rich while you live paycheck to paycheck. If you want to be a millionaire, you need to change your lifestyle to mimic most millionaires.
The lifestyle of the average millionaire
Most millionaires live well below their means. They don't worry about driving the nicest cars or living in the biggest houses. They believe that true financial independence is more important than showing off their social status. What does that mean to you? It means you must get out of debt and stay out of debt!
But they don't stop there. Most millionaires also plan the routes their money will take. They spend a lot of time, energy and money toward budgeting, saving and investing. They set financial goals, make detailed plans to reach those goals, and never give up.
How you can become a millionaire
Did you take special notice that most millionaires invest their money? It's not enough to live below your means and save money; you must invest that money. Dave recommends you invest in mutual funds because they offer several advantages over individual stocks. Here's a quick breakdown of his suggested investments:
- 25% in a growth mutual fund
- 25% in a growth and income mutual fund
- 25% in an aggressive growth mutual fund
- 25% in an international mutual fund
For more details and to find high-return mutual funds, talk to one of our investing Endorsed Local Providers (ELPs). Our ELPs are professionals who think like Dave when it comes to investing and have promised to take care of his fans. Our ELPs will explain everything to you in plain English and never try to pressure you into anything you don't understand.
I have been guiding my aunt through a rough time after her husband died suddenly. Fortunately my uncle left behind an amount of money that will get his young 63-year-old wife through without worry. Having never written a check, she was scared, and I was worried for her. Your ELPs have been wonderful. They have taken unbelievable time with her and refuse to sign her up for anything she does not completely understand. They have given my aunt and I a wonderful experience. Thank you, Dave, for recommending them, and I thank your ELPs more than they will ever know. – Tammy from TN
Start planning to become a millionaire with one of Dave's Investing ELPs in your town.
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