Have you ever read the book, The Millionaire Next Door? In short, it talked about the financial habits of those that are millionaires. Spending habits, financial risks, where they live and what they do to accumulate wealth. The surprising element from the book is that there are literal millionaires right next door to you and you would never know it!
The Biggest Takeaway from the Book…
It is all about “spending tomorrow’s money today.” Sounds simple. However, in the analysis, it is far more complex when you actually apply it to your life. Your personal finances. Your financial plan, if you have one. Spending tomorrow’s money today really applies to debt and retirement.
The Millionaire Next Door — Spending Tomorrow’s Money!
Although our spending habits are of major concern — you know the “Keeping up with the Joneses” — we need to talk about trading tomorrow’s money today. Here are some examples of when we spend tomorrow’s money today:
- Balances on our credit cards at massive interest rates.
- When we make just the minimum payments on our student loans.
- When we continue to purchase furniture, electronics, and household goods on “1 year same as cash.”
- When we are not fully vested in our 401k or retirement plan.
- When we lease and purchase vehicles based on their payment amount in terms of 60, 66, or even 72 months.
The Millionaire Next Door Questions!
The value of today’s money and the value of tomorrow’s is not something that is guaranteed. We live in a historic time. When mortgage companies, banks, and credit unions are giving away mortgages, you should never be spending tomorrow’s money today.
Here’s the kicker: You just don’t need another refinance. You don’t need another plan. What you need is a purpose with your plan. Consider this when thinking of spending tomorrow’s money today:
- What does my family look like 5, 10, or 15 years from now?
- What does my career look like 5, 10, or 15 years from now?
- Can I survive a downturn in the economy?
- Can I pay for my kid’s college tuition?
- What and why are my spending habits the way they are?
- What is my mortgage really doing for me?
The Millionaire Next Door Mortgage!
It is this last one that we focus on: What is your mortgage doing for you? Did it get you in the home? Yes, but that is only 25% of a mortgage value. It is a tool, an instrument, to achieve so much more.
You can immediately stop the cycle of spending tomorrow’s money today by having a plan of purpose to your mortgage. You can refinance your mortgage with specific objectives in mind. We can help you get there. We will put the plan together, you just bring the purpose. By setting it, you can then be the Millionaire Next Door!