I have wormed my way into is The Millionaire Next Door by Thomas J. Stanley Ph.D. and William D. Danko Ph.D. This book dives deeply into the psychology, habits, and financial discipline of millionaires. I am halfway through chapter two and here are a few observations I'd like to share:
- Most millionaires set financial goals and build the discipline to accomplish each.
- Most millionaires aren't big spenders. In fact, wealth has absolutely nothing to do with materialism nor consumer spending goods and services.
- Most millionaires budget, tightly. That's because they have cultivated good financial offense and defense...
- Financial offense is income generation. Most affluent households have incomes higher than the US average which was, at the time the book was written (1996), $30,000. Financial defense is being frugal.
- Most non-millionaires and high-earning, low net worth Americans are on a non-stop earn-spend cycle. Saving, budgeting, wisely investing, and being frugal are four weapons to combat consumerism and low net worth.
I have special shout outs to three people who impacted me thoughts and observations over the last week:
- Lebron James: Man, great choice. I think it's wise to go back home and strive to win for your home community. As John Maxwell wrote: Learn- Earn- Return. You've learned how to be a champion in Miami, you earned two titles in Miami, and now you return home to take apply those lessons to your native community in Northeast Ohio. Great choice. I applaud you.
- Donald Lawrence: Your album 20 Year Celebration: Vol. 1 Best for Last is a masterpiece! Every song is Bible-based even with the Scripture references beside song titles. Wish more artists would do this. Thanks for lending your gifts to the Lord!
- The Apostle Paul: For being obedient to the Holy Spirit and writing the book of Romans. Anyone wanting to learn the basis of salvation, God's righteousness, and the God-established plan for mankind's salvation should read it.