There is a terrific book titled "Millionaire Next Door". The research done by the authors is very extensive and very enlightening and will show you the traits and habits of millionaires in America. Stanley and Danko are the researchers that have interviewed hundreds of millionaires. What they have discovered is quite different from our perception of what a millionaire looks like. The following information are excerpts from the book and my thoughts are added.
Profile of a Millionaire- 3.5% of 100,000,000 American households are millionaires
- Millionaires do not always live in upscale neighborhoods
- Wealth is not the same as income. Prodigious Accumulators of Wealth (PAW) have a much higher balance sheet than Under accumulators of Wealth (UAW)
- Wealth is what you accumulate, not how much you spend
- 80% of all millionaires are first generation millionaires and did not inherit their wealth
- Wealth is a product of hard work, perseverance, planning, and most of all, discipline
- 7% of all Americans have income of over $100,000 per year
Seven Factors In Accumulating Wealth- Live below your means
- Allocate time, energy and money efficiently in ways conducive to building wealth
- Financial independence is more important than displaying high social status
- Parents did not provide economic outpatient care (EOC)
- Adult Children are economically self-sufficient
- Proficient in targeting market opportunities
- Chose the right occupation
If you really want to be wealthy, are you willing to reorient your lifestyle and make necessary trade-offs of your time, energy and consumption habits?
Millionaires don't look like millionaires, don't act like millionaires, don't dress like millionaires.
Millionaires don't usually buy custom suits, don't usually buy expensive foreign luxury cars and watches and don't always live in exclusive upscale neighborhoods. Many of them live next to you and you don't know that they are millionaires.
If you want to be a millionaire, one of the best ways to accomplish that goal is through wise real estate investing. There are tax laws that you can use to your benefit and defer taxes or avoid them completely. There are investors that are making money in this market if they know what they are doing. It takes more planning and wise decisions to profit in this difficult time but it can be done. There are always buyers and sellers in every market condition and finding the right investment is crucial to success.
Don't have a big hat and have no cattle!!!!
I highly recommend that all buyers and sellers of real estate take the pre-licensing course to understand the real estate business. Buying your home or real estate investment property will be one of the biggest investment you will make in your life. You need to be educated in subjects such as tenancies and how to hold title to property, real estate licensing laws, wills, intestacy laws, escheat, eminent domain, easements appurtenant and gross, title search, land court, regular system, escrow process, title insurance, encroachments, condominium and subdivision laws, leases, commercial lease, landlord tenant code, fair housing, disability law, truth in lending law, real estate settlement procedures act, financing, mortgages, promissory notes, etc. etc. etc. The real estate school will give you great insight into all of these issues and you will become a better consumer and a better investor.
For more information, go to
www.abeleeseminars.com. I would love to see you in class and teach you what I know about this wonderful industry and how you can benefit. For more information on any of my articles, email me at
abelee@hawaii.rr.com or call me at 216-4999. I would be glad to talk with you or meet with you to answer any questions that you may have. I am willing to speak to any groups regarding any of the topics that I have authored. The course content can be seen on my website under continuing education section.
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