What makes a millionaire? It’s not winning the lottery or inheriting money, despite some common misconceptions. As Clark has said, it’s never what you make, it’s what you don’t spend that makes you rich over time.
Thomas Stanley was a professor who studied the behavior of rich people and then wrote a book in 1996 called The Millionaire Next Door. That book quickly helped him become one of them!
The spending habits of millionaires
When Stanley was interviewed by Money Wise, he revealed some new insight into the spending habits of people who are financially comfortable:
- Millionaires pay $13 for a bottle of wine
- Their watches cost $150 (Clark prefers his $19 Casio, though)
- Millionaires have simple sedans, not luxury cars
- Millionaires spend $16 on a haircut
- When they go out to eat at what they consider a nice restaurant, they typically spend $19 per person
Of course, there are some exceptions to every rule. But this is the general lay of the land in the millionaire world. The real millionaires — and we’re not talking about the Hollywood types — are all flash and no cash.
You don’t need to make big money to have big money over time. Remember, put it in your mind: It’s never what you make, it’s what you don’t spend.