In Thomas J. Stanley’s most recent book, Stop Acting Rich…and Start Living Like a Real Millionaire!, Dr. Stanley exposes the truth about millionaires most people either don’t want to believe or just don’t know:
Frugality is the name of the game for the majority of seven figure earners.
Dr. Stanley revealed this truth in his 1996 best-selling book, The Millionaire Next Door. Yet 15 years later, despite the resounding evidence that most millionaires do not drive Mercedes, Porsches, or Bentleys, or live in 10,000 square foot mansions, the popular media continues to showcase an over-the-top lavish lifestyle as the way of the wealthy in this country.
The fact is, people who become millionaires and stay millionaires are most apt to forgo the shiny bling bling and opt instead for a more modest lifestyle. While there is plenty of money in this new economy, the circumstances of these last few years have put in sharp relief the financial reality of middle class Americans (who are most vulnerable to the marketing messages of high end brands).
Excessive borrowing in order to look the part of the millionaire does not a millionaire make. Indeed, we have seen first hand where that approach to life gets us. Better to operate from a place of positive cash flow and forgo the designer brands, the McMansion, and the new car in favor of less expensive items that work just as well.
Dr. Stanley isn’t the first person to argue that true happiness and fulfillment can’t be bought. But his message is timely, even critical, as we move into this next phase of economic renewal. The hottest luxury of the new economy isn’t a brand new car — it’s the peace of mind you have at night knowing you’ve got money in the bank, and then some.
