The Millionaire Next Door Analysis

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Imagine you are living in a 30 year old neighborhood where children walk to school, many have raised families and are retired, and new married couples move in. Your neighbors range from a retired insurance salesman, a veterinarian, a potato farmer, a dentist to a retail manager. Would you ever guess one was a millionaire? This was my family’s experience living in Idaho. We knew who they were before we knew they were wealthy in a financial sense. They did not display their wealth, but instead lived in a modestly sized, older home driving just your average vehicles. What impressed me about the potato farmer was his tenacity and energy for life, and he had a work ethic that was supreme taking every opportunity to teach others how to work. …show more content…
They teach their children correct principles regarding life and money, they are frugal, self-reliant, diligent financial planners and budgeters, and they do not live above their means through an extravagant lifestyle. Everything they do revolve around financial independence. In contrast, those who we see in public to be so-called millionaires may have the means to live as they do, but are not truly millionaires; their lifestyle is based upon what they make each and every day to support it. “One of the greatest favors parents can do is to teach their children to work” as stated in the guide One for the Money. I learned these well to do parents were raising independent, disciplined children who saw a well-planned, frugal lifestyle. Another correct principle they teach is the value of education, college degrees and by choosing an appropriate occupation that will not hinder one’s savings. Living well below one’s means is common among the wealthy. Joe J Christenson has said, “If we live within our means and avoid debt, resources can be accumulated. There are those with average incomes who, over a lifetime, do amass some means, and there are those who receive large salaries who do not. What is the difference? It is simply spending less than they receive, saving along the way, and taking advantage of the power of compound