10 Millionaire secrets about how they live!

I’m going to review the following list from a SmartMoney article.

The following list is written as if the average millionaire is talking directly to us.

1. “You may think I’m rich, but I don’t.” – This is why so many millionaires declare themselves middle class, and in New York and other big cities… They are very correct in their assessment!
2. “I shop at WalMart . . .” – This was surprising to me!  I thought they would shop a little more upscale to avoid us “the masses” folks.
3. “…but I didn’t get rich by skimping on lattes”. – Most of them earn well over $100,000, so they really don’t need to skimp here.
4. “I have a concierge for everything.” – I believe this is for the more high-end millionaires.  I don’t know any millionaire that uses such a service for personal chores.
5. “You don’t get rich by being nice.” – This really is talking about in a business setting.  They are all business when it comes to making money, and rightfully so!
6. “Taxes are for little people.” the top 1% of earners pay 40% of the federal income taxes.  It’s no wonder why they try to reduce taxes as much as possible within legal means…  I would too if I were them (and so would you!).
7. “I was a B student.” – Interesting!  Maybe a C, B student still has a chance after all!  The median grade point average for millionaires is 2.9!  That’s the median folks!  And most attended state college or a university!  So I guess it really is more than just grades in school!  46% do have advanced degrees though!
8. “Like my Ferrari? It’s a rental.” – It seems like a smart enough move to me (In fact, I was going to post using rentals instead of purchases in a future post).
9. “Turns out money can buy happiness.” – This was a shocker for me.  Usually, I hear the “money can’t buy happiness” matra, but common sense would dictate that having money affords you more opportunities to make yourself happy!  Trips overseas, Disney vacations, flying, etc…
10. “You worry about the Joneses — I worry about keeping up with the Trumps.” – Yes, there will always be someone richer than can afford something that you can’t.  They are also worried about a declining lifestyle in retirement (just like the rest of us).

In the category  #3″…but I didn’t’ get rich by skimping on lattes”, they mention that most millionaires still have mortgages.  I checked and around 40% of millionaires don’t have a mortgage at all, and the median mortgage balance was under $100,000.  So even though 60% have a mortgage, it’s small potatoes compared to their level of wealth…

My belief is at the beginning of the journey to become a millionaire, it makes sense to skip the lattes, if later, you decided that the lattes need to be added, so be it.

The most surprising piece of information I read was:

That means buying luxury items on sale, hunting for bargains – and even clipping coupons. In fact, affluent households, including those with income above $100,000, tend to be heavier coupon users than those with lower incomes, according to a 2009 study by Nielsen and market research firm Inmar.

This should not have surprised me…, of the few millionaires that I know, most are always looking to get things at a cheaper price.  See Wealth Tip #3: Be Cheap, Don’t Show Off for my personal observation.  I just have a hard time envisioning Warren Buffett or Bill Gates clipping coupons (lol).

Do you know any local millionaires?

If so, are they like frugal middle-class millionaires or more like Hollywood “Paris Hilton” style, high consumption millionaires?

-D