If you read the books "The Millionaire Next Door" or "The Millionaire Mind" you may be surprised to learn that most millionaire's are just ordinary people.
The majority of millionaires aren't living in gaudy mansions or driving Ferrari's. They have average sized homes and drive Ford F150's. They DON'T regularly drink champagne or eat caviar. They drink beer and eat hot dogs. They DON'T wear designer clothes they wear Levi jeans.
In a 10 part series we will discuss the misconceptions many people have about being a millionaire. Truths that may just burst your wanting to be a millionaire bubble.
In part 3, most millionaires won't tell they got rich skimping on lattes.
So, how do you become one of the financial elite? The most common path is running your own business. Or you could buy stocks or real estate, or be a high roller in Vegas. But in half the cases studied, in a survey done by American Express and The Harrison Group, running your own business is the winner. A third had a professional practice or worked in the corporate world, and only 3 percent came from inheritance.
Virtually all millionaires make purposeful use of their debt. Regardless of how they built their nest egg. This according to Russ Alan Prince, coauthor of "The Middle Class Millionaire." They take out loans to build their business. Avoid high interest credit cards and leverage their home equity to finance purchases. Their wealth isn't tied up in their homes either. Home equity represents only 11 percent of a millionaires total assets according to TNS. People who are serious about building wealth always want to have a mortgage. It's one of the few tax deductions they get.
Remember it's OK to have debt as long it produces income producing assets. Debt to start a business...good. Debt to buy clothes...bad.
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