Where are the Millionaires who look like Millionaires?
This chapter is all about the make up of most millionaires including what they drive, what they wear and how they 'act'.
What their research showed was that Millionaires are not what we expect. They did not inherit money from their daddy or grandparents. #Mythbusted !!
Instead, what this study showed us is that most of the millionaires are ordinary people who have made wise money decisions.
Most American Millionaires are manager-owners of businesses.
What their studies also showed was the relationship between income and net worth. What it showed was that as your income increases amongst many millionaires, so too does their net worth. They argued that this was the case for all ethnic groups but one.
The anomaly of this situatio
n was the Scottish. What they found was that:
The Scottish were frugal.
This was the difference. What this meant was that despite a low income that the Scottish could still save and invest.
Another characteristic of difference between the Scottish and other ethnic groups was the fact that they instilled this frugality in their children causing this trait to be inherited and passed on through generations to come.
Scottish who were determined to save and invest became millionaires with incomes far less than the average American.
I think that this story is common with Maori too. We are often raised with limited resources, encouraged (or forced) to make these stretch to reach our big families. If we were to incorporate these learnings in to our adult life, increase our incomes and invest the difference... Many Maori would be better off.
Anyways, that's me for now. Come back tomorrow for the next chapter review - FRUGAL FRUGAL FRUGAL.
Hei kona ra,