This series will share three huge looming obstacles to wealth.
Then we’ll look at three common denominators of wealth that can turn these potential disasters into a fortune rather than the opposite.
Common denominators of wealth are described in a book, “The Millionaire Next Door,” by Thomas J. Stanley, Ph.D. This author is a university professor who began studying millionaires over 20 years ago. He was seeking how to find how people became wealthy. He has written several successful books beginning with “The Millionaire Next Door”. That book was so revealing, it was on the New York Times Best Seller List for 43 weeks. Then he wrote the “Millionaire Mind” and recently released “The Millionaire Woman Next Door.”
Dr. Stanley’s intimate relationship with some of the richest people in the world makes the information in his newest book powerful. In meeting so many multi-millionaires, the author became obsessed with helping people understand why most of the world faces a financial crisis and how to turn the crisis into genuine security!
The author shows shocking facts why most people are under-accumulators of wealth. They explain why only a small number become prodigious accumulators of wealth and an even smaller number (3.5% of the population in America – less globally) become millionaires. This best selling book shows the common denominators of those who become and remain rich. Almost everyone wants to be a millionaire but three problems have proven to stop 96.5% of the population from achieving this goal!
The first problem (covered by Stanley) that we all face is that the entire western world is a high consumption environment.
Simply put, almost everything you see or do, every single day, is aimed at removing you not only from the money you have, but from future money you will earn. Pressures from every side to spend more and more continually bombard us. To top this problem off if, you are a chief income earner, be aware your family, spouse and kids, are also being tenaciously indoctrinated in some way to spend your money nearly every waking hour. If you have a family with two children, the four of you are being relentlessly pounded, day in and day out to spend, spend, spend!
Does this problem sound too simple? When you read “The Millionaire Next Door” you learn the cold, chilling facts. Almost everyone wants to be a millionaire, but 96.5% fail. Even among those with high incomes, most fail. Madison Avenue and big business know how to keep us spending and this keeps 96.5% of the population poor.
For example, there are many earners in the U.S. with average incomes of $200,000+ who are not only far from being millionaires, in terms of their lifestyle they are actually poor! This never-ending battering to spend money comes in a horrendously complex number of ferocious ways, especially for high earners. The mass of this indoctrination simply wears us down. We are drowned in a concept that we must have more and more. This concept washes over us from the moment we first learn to speak and read. The thought is blasted at us from every public source, radio, papers, television and more. The message is have, have, have, spend, Spend, SPEND!
Then the problem grows! If we have any success at all or are in a profession such as medicine, law, accounting or in business, we are expected to look, act, dress, and consume in certain ways. Those who don’t fall into line are shunned. Our business or practice can be hurt, even destroyed, if we don’t conform to this perfidious demand. We are literally forced to jump through foolish hoops into a never-ending, downward spiraling rat race. Foolish, yes. But how do we get off?
The first common denominator of millionaires I they live beneath their means. This is why Merri and I love to live at least part time where costs are low!
Does this all still sound too simple?
“The Millionaire Next Door” goes on to show how this spending is even more complex because much of the indoctrination, which we are crushed with daily, is hidden. We are submitted, literally every hour, with subliminal advertising, duped and tricked with unexplained and hidden costs in practically everything we do. There are hidden fees, hidden interest charges, hidden credit card expenses and hidden taxes, fees and penalties, which jump out at every turn.Until then may your income always exceed your needs!