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Millioniare's Mind

 

"Others can stop you temporarily, but only you can do it permanently."

Author Unknown

 

 

Thomas J. Stanley, Ph.D. recently published a book titled "The Millionaire Mind" published in 2000.  This book was a follow-up to his best selling book "The Millionaire Next Door."  In the The Millionaire Mind Dr. Stanley conducted an extensive survey of over 1,000 "millionaires" in the United States in an effort to determine the common attributes that occurred between the people.  The results are very interesting and one should read the book for further knowledge. 

Below I have excerpted a few key elements from The Millionaire Mind that may help one to see what is necessary to be a millionaire.  You may find the information very interesting. 

Basic Information:

bulletAll were first generation, seasoned business owners, executives or professionals
bulletSome were credit dependent earlier in their careers, but eventually "saw the light"
bulletMost people in the book became economic successes in one generation, i.e. they came from economic "ground zero"
bulletOut of 1001 surveys completed, 733 were millionaires
bulletMost lived in old, well established, upper-middle-class neighborhoods in homes built in the 1940's and 1950's (no flashy new subdivisions)
bulletThey do not follow the crowd
bulletMost saw opportunities that others ignored

Demographic Overview of Self Made Millionaire:

bullet54 years old
bulletMarried to same woman for 28 years
bulletOn average have 3 children
bullet92% are married, 95% have children
bulletOn average have net worth of $9.2 million
bulletMedian income of $436,000 (only 20% have income of $1+ million)
bulletTypically never spent more than $41,000 for a car, or $4,500 for engagement ring
bullet25% have never spent more than $340,000 for a home
bulletOnly 2% inherited all or part of house or property
bullet8% inherited 50% or more of net worth
bullet61% have never received any inheritance, financial gifts or income from an estate or trust
bulletFound all over the country (US)
bulletSmall outstanding home mortgages
bullet32% are business owners
bullet16% are senior corporate executives
bullet10% are attorneys
bullet3% are physicians
bulletBusiness owners are richest of the group
bullet50% of wives do not work out of the home (those employed are business owners)
bullet90% are college graduates, 52% have advanced degrees

Millionaires Mind:

bulletFinancially independent, yet tend to live a comfortable not extravagant lifestyle
bulletHave fine homes but little or no debt
bulletTend to buy homes when others are selling
bulletSelf-made affluent
bulletFew found it necessary to get out of bed at 3-4 am each work day to accumulate wealth
bulletPlay golf or tennis on regular basis
bulletNot into "do-it-yourself" tasks (those that do tend to have significantly less wealth than the average of the group)
bulletBecame rich without compromising their integrity
bulletNot workaholics
bulletSpend lot of time socializing
bulletFocus energy to maximize the return on effort
bulletSpend time planning investments and often consult tax advisors
bulletPositive correlation between number of lifestyle activities and net worth

Success Factors:  Top 5 factors most often mentioned by millionaires as being very important in explaining their economic success

bulletIntegrity:  being honest with all people
bulletDiscipline: applying self control
bulletSocial skills:  getting along with people
bulletA supportive spouse
bulletHard work:  more than most people

    "Luck" ranked number 27 or 30 success factors

    No one have anything nice to say about gambling

How They Became Millionaires In 1 Generation:

bulletMost saw economic opportunity that others just ignored and have willingness to take financial risk, given the promise of a good return.
bulletHave strong leadership qualities
bulletThey provide a product or service that has strong demand but few suppliers
bulletThey do not follow the crowd

Education/Intelligence:

bulletIn general they were average in intelligence and grades in school
bulletHighest GPA (grade point average)              3.12  (physician)
bulletLowest GPA                                               2.76  (business owner)
bulletAverage GPA                                             2.92
bulletSAT (standardized test) were similar, ranging from  1090 to 1267 with an average of 1190

Courage and Wealth:

bulletThose with millionaire's mind look at being self-employed
bulletIt is risky not to be self-employed
bulletBeing self-employed you are in control of your own destiny, profits are yours, there is no ceiling on income
bulletThink of success, not failure
bulletTake risk, but study probable outcomes
bulletReduce or eliminate fear and worry by believing in themselves and hard work
bulletPrepare and plan to succeed
bulletCommon sense is important

Miscellaneous Characteristics:

bullet70% have shoes resoled and repaired (takes less time than buying new ones)
bullet48% have furniture reupholstered or refinished
bullet71% develop a shopping list before going grocery shopping
bullet50% buy household supplies at warehouse store (e.g. Sam's, Costco)
bulletFirmly believe that time is money

 

 

 

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