Fortunately, there are a lot of ways to do it. While doing research for my book, “The Eventual Millionaire,” I interviewed more than 100 millionaires who came from all walks of life and made their first million in dozens of different ways, from starting their own businesses to investing in the stock market or real estate. And those aren’t the only paths to becoming a millionaire, either: Others hit the mark by simply living below their means and saving portions of each paycheck.
Before you can make a million, though, you need to get past the mystique and the myths surrounding it. Here are 6 common myths about millionaires debunked.
The Myth: Millionaires Live Lavishly
When you think of millionaires, you may picture people living in luxurious mansions and driving expensive sports cars. The reality? Millionaires are often the people next door: They drive Hondas and Volvos. They’re frugal (57 percent of the ones I interviewed described themselves as such). They often spend their money on necessities and a few things that are very important to them. Think Warren Buffett: The celebrated multi-billionaire famously still lives in the Omaha, Neb. house he bought in 1958 for $31,500.
In most cases, millionaires have gotten to where they are precisely because they’ve practiced excellent savings habits and live frugally. They learn to make smart choices, and they don’t stop just because they hit the $1 million mark. If anything, they’re validated by seeing the choices they’ve made paid off.