19 Things The Millionaire Next Door Won't Tell You

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Photo: AP Photo / Luca Bruno

That’s right.  Although having a million bucks isn’t as impressive as it once was, it’s still nothing to sneeze at.In fact, Reuters reports that in 2009 there were 7.8 million millionaires in the United States.

See what your millionaire neighbour won’t tell you >
That’s a lot of people, people.  And the odds are one or two of them are living near you.

Heck, one of them might even be your neighbour.  In fact, the odds are very good that it is your neighbour.

But, Len, you don’t know my neighbour.  That guy doesn’t look anything like a millionaire.

Well, guess what?  Your suburban millionaire neighbour called (oh yeah, we go way back) and the two of us had a nice little chat.

Here’s a few things he shared with me – but apparently doesn’t want to tell you.  (No offence, I’m sure.)

He always spends less than he earns

In fact his mantra is, over the long run, you're better off if you strive to be anonymously rich rather than deceptively poor.

From LenPenzo.com

He knows that patience is a virtue

The odds are you won't become a millionaire overnight. If you're like him, your wealth will be accumulated gradually by diligently saving your money over multiple decades.

From LenPenzo.com

He serves his guests inexpensive coffee

When you go to his modest three-bed two-bath house, you're going to be drinking Folgers instead of Starbucks.

And if you need a lift, well, you're going to get a ride in his 10-year-old economy sedan. And if you think that makes him cheap, ask him if he cares. (He doesn't.)

From LenPenzo.com

He pays off his credit cards in full every month

He's smart enough to understand that if he can't afford to pay cash for something, then he can't afford it.

From LenPenzo.com

He realised early on that money does not buy happiness

If you're looking for nirvana, you need to focus on attaining financial freedom.

From LenPenzo.com

He knows the power of financial freedom

He never forgets that financial freedom is a state of mind that comes from being debt free. Best of all, it can be attained regardless of your income level.

From LenPenzo.com

He knows a thing or two about second jobs

He knows that getting a second job not only increases the size of your bank account quicker but it also keeps you busy -- and being busy makes it difficult to spend what you already have.

From LenPenzo.com

He knows how to manage his money

He understands that money is like a toddler; it is incapable of managing itself. After all, you can't expect your money to grow and mature as it should without some form of credible money management.

From LenPenzo.com

He's a big believer in paying yourself first

Paying yourself first is an essential tenet of personal finance and a great way to build your savings and instill financial discipline.

From LenPenzo.com

He understands that work is about enjoyment

Although it's possible to get rich if you spend your life making a living doing something you don't enjoy, he wonders why you do. Life is too short.

From LenPenzo.com

He knows that failing to plan is the same as planning to fail

He also knows that the few millionaires that reached that milestone without a plan got there only because of dumb luck.

It's not enough to simply declare that you want to be financially free.

From LenPenzo.com

He's not afraid to think big

When it came time to set his savings goals, he wasn't afraid to think big.

Financial success demands that you have a vision that is significantly larger than you can currently deliver upon.

From LenPenzo.com

He knows the importance of hard work

Over time, he found out that hard work can often help make up for a lot of financial mistakes -- and you will make financial mistakes.

From LenPenzo.com

He insures himself against risk

He realises that stuff happens, that's why you're a fool if you don't insure yourself against risk.

Remember that the potential for bankruptcy is always just around the corner and can be triggered from multiple sources: the death of the family's key bread winner, divorce, or disability that leads to a loss of work.

From LenPenzo.com

He understands that time is an ally of the young

He was fortunate enough to begin saving in his twenties so he could take maximum advantage of the power of compounding interest on his nest egg.

From LenPenzo.com

He knows that you can't spend what you don't see

You should use automatic paycheck deductions to build up your retirement and other savings accounts.

As your salary increases you can painlessly increase the size of those deductions.

From LenPenzo.com

He works because he loves it

Even though he has a job that he loves, he doesn't have to work anymore because everything he owns is paid for -- and has been for years.

From LenPenzo.com

He's not impressed by unreasonable spending

He's not impressed that you drive an over-priced luxury car and live in a McMansion that's two sizes too big for your family of four.

From LenPenzo.com

He's actually a really good neighbour

After six months of asking, he finally quit waiting for you to return his pruning shears. He broke down and bought himself a new pair last month. There's no hard feelings though; he can afford it.

So that's it. Now you know what your millionaire neighbour won't tell you.

Oh, and, um, would you be so kind to keep this just between you and me? I'd hate to ruffle anyone's feathers or cause of any kind of neighborly spat.

Please?

Thanks. You're a peach.

From LenPenzo.com

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