May 12, 2006

The Millionaire Mind

Here's an interesting read for those following our series Make Money Work for You

As our series on making money online draws to a close I think it would be worthwhile to briefly discuss the mind of a millionaire.

I found a post about the book the Millionaire Next Door on very interesting.

It seems millionaires tend to be more frugal with their money than commonly thought. This makes sense when you consider how they save and invest money in long term assets (stock‘s bond‘s CD‘s) instead of spending a lot of money on liabilities which loose money over time (frivolous expenses which you know you don‘t really need but purchase anyway).

Just because they are wealthy does not mean the spend freely. In fact, according to the book, most don’t spend money they don’t have. Here’s an example of their spending habits the author outlines,

“The typical member (millionaire) of our group has never spent more than $41,000 for an automobile or $4,500 for an engagement ring. Neither our spouses nor we have ever spent more than $38 (including tip) for a haircut."

There’s an old saying, which sums this up nicely, “I’m rich but I’m not stupid”.