“By sowing frugality we reap liberty, a golden harvest.”
From the Frugal-Wise blog
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“Twenty years ago we began studying how people become wealthy… In time, we discovered something odd. Many people who live in expensive homes and drive luxury cars do not actually have much wealth. Then, we discovered something even odder: Many people who have a great deal of wealth do not even live in upscale neighborhoods.
Most people have it all wrong about wealth in America. Wealth is not the same as income. If you make a good income each year and spend it all, you are not getting wealthier. You are just living high. Wealth is what you accumulate, not what you spend.
How do you become wealthy? Here, too, most people have it wrong. Is it seldom luck or inheritance or advanced degree or even intelligence that enables people to amass fortunes. Wealth is more often the result of a lifestyle of hard work, perseverance, planning, and, most of all, self-discipline.
There has never been more personal wealth in America than there is today (over $22 trillion in 1996). Yet most Americans are not wealthy. Nearly one-half of our wealth is owned by 3.5 percent of our households. Most of the other households don’t even come close…
More than twenty-five million households in the United States have annual incomes in excess of $50,000; more than seven million have annual incomes over $100,000. But in spite of being “good income” earners, too many of these people have small levels of accumulated wealth. Many live from paycheck to paycheck…
How long could the average American household survive economically without a monthly check from an employer? Perhaps a month or two in most cases…
“This people cannot be millionaires! They don’t look like millionaires, they don’t’ dress like millionaires, they don’t’ eat like millionaires, they don’t act like millionaires – they don’t even have millionaire names. Where are the millionaires who look like millionaires?” The person who said this was a vice president of a trust department. He made these comments following a focus group interview and dinner that we hosted for ten first-generation millionaires. His view of millionaires is shared by most people who are not wealthy. They think millionaires own expensive clothes, watches, and other status artifacts. We have found this is not the case… Looks can be deceiving.”
(From “The millionaire next door:
the surprising secrets of America’s wealthy”
by Thomans Stanley and William Danko)
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