Millionaires are frugal too! It’s how they maintain their Millionaire status.
However, I’m middle class, read my previous, middle class report on 15 ways to be frugal here.
The Millionaire Next Door: The Surprising Secrets of America’s Rich is one of the many books that inspired me to become debt free.
These principles are taken from Chapter 2 “Frugal Frugal Frugal”.
“The opposite of frugal is wasteful.”T.J. Stanley & W. D. Danko
12 Frugal Principles of Millionaires
- It’s okay to take free food or free items
- Don’t buy expensive clothing, shoes, or accessories
- Be as frugal or more frugal than your spouse
- Maintain a strict budget
- Be aware of how much you and your family spend in each category each year
- Only have one credit card: Visa, MasterCard, or Sears
- Have daily, weekly, monthly, annual, and lifetime goals
- Spend a lot of time planning your financial future
- Live below your means
- Minimize taxable income and maximize unrealized income
- Contribute to pension and retirement plans
- Never purchase a home more than twice your annual income
Granted, this book was written in 1996. Some of these scenarios may be different in this day and age because the cost of living and average salary have increased since then.
As stated on debt.org, The average American household has $8,284 in credit card debt. Also, Sears went bankrupt and I’m not sure if anyone here in Los Angeles can find a home worth only 2x their annual income.
Dream with me for a little.
Imagine we all avoided debt, lived well below our means, and aimed to be as frugal as Millionaires. We would one day attain financial independence as they have!
This book was a game changer for me and I highly recommend to read it one day. Click here to purchase the book or audiobook from Amazon.
- What frugal principles of Millionaires do you abide by?