Everyday Millionaires summary

We’ve all heard someone say, “I bet that guy’s never done a day of work in his life.” For some reason, people like to assume that wealthy people must have been either incredibly lucky or born with a silver spoon in their mouths to get where they are.

But guess what? Most millionaires don’t inherit their money. In fact, 79 percent of those the author interviewed received no inheritance whatsoever. It was hard work, sacrifice and sticking to a plan that got them where they are. Take Thomas, for example. He grew up poor, in a home riddled with alcoholism and dysfunction. Both his parents died young, and by the time he was ready to go to college, he knew that there were two things he wanted to avoid in his life – alcohol and poverty.

When you think of a wealthy person, you may think of a flashy Wall Street trader making audacious deals that turn her into a millionaire overnight. Well, sorry to burst your bubble, but real life isn’t like that. The idea that wealthy people make risky investments is just a myth.

For example, not one of the millionaires in the author’s study mentioned investing in single stocks, and it’s clear to see why – the risk is just too great. When you buy a single stock, you’re putting all of your eggs in one basket. If that stock fails, you can kiss your hard-earned money goodbye.

To get into the millionaire club, you need a prestigious education and a high-status job, right? Well, there’s a kernel of truth in that. But only a kernel. It’s definitely true that most millionaires have a college education. 88 percent of the millionaires in the author’s study have a bachelor’s degree, while a further survey shows that only 33 percent of the general population does.

By every measure, a college education is a valuable thing – according to Georgetown University, those with a bachelor’s degree make 74 percent more over the course of their lives than people who only have a high school diploma. But that doesn’t mean that education needs to be a brand-name one. Ask the millionaires – 62 percent of them got their degrees from a public state school. There’s nothing wrong with private schools, of course. They can be a good option for people who can afford them. But a year at the average private school ends up costing about $45,370 in total, according to CNN Money. State schools, on the other hand, are about $20,090. That means that you end up paying twice as much to go to a brand-name school for the same degree.

It seems like the US is filled with crises these days. From the financial crisis to the opioid epidemic, they’re everywhere you look. But no one is talking about the crisis of responsibility that’s plaguing the US today.

The sad truth is, most people just don’t take responsibility for managing their finances. Take retirement savings, for example. Hogan’s research team found that while 56 percent of Americans were worried about retirement, few people were actually preparing for it. Half of the baby boomers polled didn’t even have $10,000 saved. And 80 percent of millennials wished they were investing more toward retirement and building a nest egg – but they weren’t actually doing it.

How can you spot a millionaire? After all, most millionaires live unassuming lives and wear blue jeans just like the rest of us. Here’s a tip – look at people’s behavior. The millionaires are the ones who do things with intentionality.

Intentionality is the difference between deciding and sliding. If you’re sliding through life, you’re not in control. You’re just drifting along without a plan, and at retirement age, you’ll probably realize you don’t have a cent in savings. Deciding, on the other hand, is about being in control and making conscious choices.

One thing about millionaires is that when they say they’ll do something, they do it. In fact, 97 percent of millionaires reported almost always achieving the goals they set for themselves. Anyone can learn to set goals, and being SMART about it means you’ll actually achieve them.

SMART stands for Specific, Measurable, Achievable, Relevant and Time-sensitive.

It’s hard to be patient. Who isn’t tempted by short-term rewards? But millionaires forgo these distractions, building wealth through patience and consistency. And when it comes to consistency, there’s nothing better than the magic of compound interest. There’s even a quote – which many attribute to Albert Einstein – that calls it the most powerful force in the universe!

Let’s say you put $1,000 into an investment and find that it’s grown to $1,100 a year later. If you keep the money where it is, then that extra $100 will start accruing interest as well. That’s interest earning interest! And that just snowballs over time, if you’re willing to be patient.