From the son of a subway car driver to a renowned author who barely anticipated his success
but ended up selling over 4million copies of his book, J. Stanley is not a new name.
With passion and desire to understand what makes the affluent become what they are,
He sought to find answers. Through studying small groups of people - with good money,
he came up with principles that have changed how many people think of money.
And if you haven't yet read the book, I highly suggest you do.
So, in today’s video, we will be going through some of the insights given by the author
to help us tell if our next-door neighbors are actually millionaires.
So, stay tuned, as I will also be telling you how you can make money with art,
thanks to our sponsor Masterworks.
1. Look at their shoes and clothes My aunt once told me that if you
want to know the value of a man, you should look at their shoes. At first,
I thought it meant that they should have the flashiest, trendiest shoes of the day.
But later on, I came to learn that it meant that the shoe should be well fitted to the foot,
clean, and well maintained. I'm like most people who think that being a millionaire
means that you have to have the latest Gucci shorts, Louboutin’s, and so on. However, dawning
designer shoes and bags don't necessarily mean that you have money to sustain that lifestyle.
In today's world, many influencers on YouTube and Instagram wear all these labels.
The little-known truth is that those things are usually either gifts from paying clients,
or are an order that will be shipped back to the store after the video and picture sessions.
All this hustle is an attempt to keep up with the Joneses. Which is
something a rich person wouldn't spend their time trying to prove.
The next-door millionaire wouldn't for a moment get caught flaunting such expensive attire,
be it shoes or clothes. They prefer to look clean, crisp, and well-kept in ordinary-looking clothes.
No wonder why they buy new clothes that will outlive any new trend because they are classic
pieces. For the wealthy, as long as the clothes fit nicely on their bodies, and the stitching
are well done, they wouldn't mind spending as little as 10 dollars to buy a shirt or pants.
2. Their Health The most definitive
difference between someone who has money, and someone who doesn't have a dime to their name,
is their general health, especially things like teeth. The most silent sign that someone is rich
is that their teeth are white and well taken care of, since these people have access to
regular dental visits. This is something you should be keen to look at next time you're
chatting with that person you think might be your next-door millionaire neighbor.
Another thing you should know is that, most times these millionaire neighbors take the
time to look after their well-being and physique. They are usually lean and don't indulge in eating
junk food often. They instead prefer to enjoy a nutritious and well-cooked meal in the comfort of
their houses. They go on jogs early in the morning or later in the day, after they walk their dog.
The affluent are willing to put in the work to ensure they are healthy all year round
because they believe that it takes health to accumulate wealth.
3. Look at their house and car A high-status job, pressures you to find
a house that best suits the job title you hold. In most cases, you'd go into debt to finances and
later subject yourself to a monthly morale fee for at least 3-years. Now, since you live in a posh
neighborhood, you know at the back of your mind that you need a car that says you belong there
(I’m one of you). Meaning, you'll have to go further into debt to buy the latest car model.
Again your house needs bigger, better furniture because you might be hosting the next barbecue,
and woe unto you if your neighbors walk in and the tiles don't match the carpet.
That new house has just resulted in more and more spending, leading you into more debt.
If you're some of the few privileged people in society, lucky to be called doctors, lawyers,
engineers, and other titles that come with a hefty paycheck. You might not slip into financial ruins.
But your savings capacity will be reduced substantially to almost nothing.
On the other hand, the millionaire next door knows the true cost of an expensive house.
That's why they will opt for a moderately priced house that serves its purpose.
They'll move around town in an old-looking car model, to keep their expenses low
and maintain their savings margin or even better increase it. When a promotion knocks
on their door or their spouse's door, they aren't quick to upscale their lifestyle.
As they use the extra income as savings for a rainy day because they know that
true freedom is only acquired by smart utilizations of money.
Look at their walls.
Art possesses the ability to motivate us, enhance our environment and life, and enable
us to perceive things from others perspectives. It's been typical for those with money and
prestige to spend millions on it, since as far back as the Revolution and even before that.
This is by no accident, for centuries, the ultra-wealthy have used art to protect their
wealth from inflation. So, it’s not surprising that 10 to 30% of billionaires buy art.
The Wall Street Journal called the art market “one of the hottest markets on Earth,”
and that contemporary art prices have outperformed the S&P by 174%
from 1995 to 2020. Also, it has very limited correlation to any major asset class,
meaning it is a strong diversification instrument in one’s portfolio.
On top of that, the total wealth held in art is estimated to be worth $1.7 trillion,
and Deloitte projects it to grow: $900 billion by 2026.
The only problem with the art market is its huge barrier to entry.
I don’t know about you, but I don’t have millions of dollars to buy a painting.
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Number 4. Their spending habits In the book, the author kept repeating
a few important term, one being; Under accumulation of wealth (UAW),
and prodigious accumulation of wealth (PAW). The term Under Accumulation of Wealth depicts
a group of people in society who seem to be well off but are living off debt.
While Prodigious Accumulation of Wealth refers to another group who don't look the part of
a millionaire but are wealthy. In the book, the group of people who practice Prodigious
Accumulation of Wealth are the ones regarded as the next-door millionaires. These are people
that hardly ever catches anyone’s attention. They rarely celebrate 1st birthdays, or 50th birthdays,
nor do they live extravagant lives, they are simply - basic.
The most important goal for these households is primarily to live below their means.
And if you didn't know any better, you'd mistake them for a family that's struggling financially.
They live very frugal lives, valuing experiences rather than material things. This means the
only big purchases they make every year is an experience-filled vacation. Unlike the people
who practice Under Accumulation of Wealth, who'd rather live their lives like a prince from Dubai.
5. Investment habits Unlike the ordinary individual, the
millionaire next door is a cut from a different cloth. This is evident in their investment habits.
A typical person who earns income will try as much as they can to creep up a new revamped lifestyle,
and they'll end up rushing for things that lack value. Some buy flashy outfits and rent lavish
apartments in the suburbs, but the few with the millionaire mindset play the game smart.
Before splurging on other stuff, they prioritize setting up an insurance fund and acquiring a
health insurance cover. Comparing the two is like comparing gold to brass. Within a couple of years,
the latter will have accumulated some good cash in their account whereas,
the spendthrift will be suffering the consequences of choosing an expensive ride beyond his income.
The wealthy also move around in cars, but if you ask any of them why they
chose that specific car or model, there answer will tell you why they are rich.
The millionaire down the road doesn't care about the flashy lifestyle,
instead, he enjoys moving low-key. Afterall a quiet life is a happy life.
6. Children's upbringing The millionaire next door mindset on children's
upbringing is just mind-blowing, and I honestly think we should all borrow a leaf from them. From
a millionaire's perspective, a child is an asset, and as their parent, they need to be a role model.
Children are very innocent, and they will follow most of the habits they see people around them
doing. So, it's important to show kids the virtues of saving, we should invest time in giving them
financial education, and strive to offer the best opportunities to grow and nurture their talents.
The millionaires believe that it’s the duty of the parents to teach their children social skills.
How to interact with other people, how to behave and portray themselves and so on. Parenting is
the same across all social classes, and only the parent can groom the child adequately for life.
The children of the wealthy are exposed to numerous forums that equip them better, for the
life journey ahead. So, if you think your neighbor is a millionaire, have a look at their kids.
7. Career choice. When you think of a millionaire
who didn’t come from money, you'd think that they must have the most prestigious jobs in the world,
or they're got lucky somewhere. But in actual fact, none of that is close to the truth when
it comes to the dude next door. They probably hold rather boring and mundane jobs. They are farmers,
welders, teachers, and even traders. Of these career options,
there isn't one that you could look at and say, they are probably the next bill gate.
These small career choices have allowed the millionaire neighbor to
focus on what's truly important, which is financial freedom.
Another thing is that most millionaires next door don't have any formal employment since
they prefer self-employment. This to me seems to have been the right way to go for them because
somehow along their entrepreneurial journey, they found the secret-map to their success.
8. Their level of education Traditional millionaires mostly acquired
their wealth from some form of inheritance, but the next-door millionaire neighbor put in
the work from the ground up. Meaning that they had to acquire a good education to help them
learn quickly what was necessary for them. You'll find that a majority of this type of millionaires
according to J. Stanley is a degree holder, a master's degree holder, and even a Ph.D. holder.
Rather than use their education to get them an 9-5 job that pays well, they opted to use that
knowledge to create something of their own. This proves that, their status wasn't because of luck,
but instead a cumulative result of hard work and intentional choices and sacrifices.
9. They prioritize paying down their debts.
Statistics carried out by specialist Jay Zigmont, confirm that millionaires are keener at freeing
themselves from high-interest debts as soon as they are financially capable. Yes! We can all
agree, that the wealthy also possesses credit cards, but how many use these money traps?
And if they do, how many of those cards have a lingering balance?
Sometimes, debt is advantageous, but other times you might end up drowning yourself in a financial
pit. Millionaires are more reserved to debts and unnecessary loans, they are extra strategic when
it comes to money matters. Anything that has a credit on its name is a big no for them,
they'd rather invest more in themselves than end up with hefty loans to service.
10. Their choice of spouse On your journey to being a millionaire,
choosing the right spouse is vital. You’ll need somebody to motivate you at your lowest,
and celebrate with you on your success. Besides, your spouse will become more of your teammate
in making important financial decisions. Honest comments from your spouse will push
you to do more and just by having a spouse around you'll have the resilience to live.
The one thing that you'll realize has changed significantly is the perception of millionaires.
Whereby in the '80s and '90s millionaires wanted to be seen, heard, and known.
Today, many millionaires would rather be normal enough to fit into a crowd.
Their unique nature still stands out simply because they make more money than a majority
of other people. But their money and status are more silent than any generation that has lived.
That's why these next-door millionaires would not be featured on Forbes.
Knowing now what you didn't know before,
would you say that you are the millionaire neighbor next door, or are you one of the UAW?
Let us know with a comment down below.
So, have a great day, and see you in the next one.