Though there are preconceptions of “old money” hoarding riches in the United States, just 21% of millionaires inherited money to reach their level of success. Of those, Ramsey Solutions’ National Study of Millionaires shows only 3% inherited $1 million or more and 16% inherited less than $100,000.
The average American household has a net worth of more than $1 million according to the 2022 Survey of Consumer Finances, suggesting that given inflation, this amount of income and savings is not quite the success it used to be.
Being a millionaire is still rather impressive, but the true trick to riches is to hang onto that money.
Family Travels
Recent patterns show that rather than goods, people are spending money on experiences. Rodgers says, however, that this does not imply you have to blow your cash in order to arrange the ideal vacation. “I’ve discovered that more fun isn’t always guaranteed by a higher price tag,” she said.
Cut expenses by avoiding tourist traps. Search for off-the-beaten path holiday accommodations, local-style dining and entertainment venues.
Daily Fashion
If you are going to a business conference or networking function, you want to present yourself best with well-fitting clothing. Still valid is the wisdom of dressed for the job you desire. Rodgers remarked, “I want to look and feel like a million dollars and will shop accordingly when I’m in a business environment.”
On her days off, though, she snuggles in Target sweats and binge-feasts Netflix. More importantly in a corporate environment, more expensive clothing may endure longer. Just be sure you are paying more for the quality than for the brand name.
For daily use, pants or sweats and T-shirts only get more comfy as they age and get worn.
Your Own Time
“To me, frugal living is about being intentional, beginning with how I spend my time,” Rodgers said. Rodgers said she assesses a meeting, invitation, or any other obligation depending on the money, time, energy, or pleasure it will provide.
Her denying 99% of time requests for her time make her decision much more significant when she answers, “Yes.”
FAQ’s
Q. How to be frugal like a millionaire?
A. Many millionaires clip coupons, buy in bulk, wait for sales, search eBay and Craigslist for deals, limit clothing purchases, fly coach, avoid credit cards, and save half their restaurant meal for lunch the next day to save money for splurges.
Q. How to be a secret millionaire?
A. Secret millionaires invest for decades. Many started saving and investing in their 20s. Investments have years to develop since most live into their 90s. Some buy-and-hold “blue chip” stocks.