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The Millionaire Next Door...or in My House? Frugal Habits of Millionaires

I started reading the book "The Millionaire Next Door" when I was a teenager. I stopped reading it...because I was a teenager ("Ain't nobody got time for that!"). I picked it back up a few weeks ago and I have found my financial spirit animal. The word "millionaire" typically brings up images of a lavish, jet-setting lifestyle, but behind the scenes, that may not always be the case. Like Warren Buffett, who famously still lives in the relatively modest house in Omaha, Nebraska, that he bought in 1958 for $31,500, many millionaires (and billionaires) live a modest, if not downright frugal lifestyle--a lifestyle that may have helped them become millionaires in the first place. For those who haven't read it, it's about a study done in the mid 90's on the"typical millionaire" and their habits that result in a net worth of $1 million or more, which they all were well above. The ones who live in your neighborhood, own small businesses, live well below their means, and you wouldn't even know they were millionaires. One thing I realized is all have one thing in common. BEING FRUGAL FRUGAL FRUGAL!!! Let's talk about this concept.

The Frugal Mindset

Many people equate being frugal with being cheap, but that's not really correct. Being frugal means carefully watching your dollars and not spending more than you need to, a trait many millionaires carry. To assist in cultivating a frugal mindset, get in the habit of asking yourself this question: "With a little extra effort and/or sacrifice on my part, is there any way I can save money here?"