Below are the notes I took while reading Chris Hogan's book Everyday Millionaires: How Ordinary People Built Extraordinary Wealth―and How You Can Too. To be honest, I was not thrilled with the book. It felt like a summary of Dave Ramsey's The Total Money Makeover. I wish the book had delved into more of the interviews that were conducted rather than just presenting endless stats.
The notes I took while reading this book:
Common myths regarding the rich:
- Wealthy people inherited their money
- Reality: 79% of millionaires recieved no inheritance
- Wealthy people are just lucky
- Reality: 76% of millionaires believe that anyone can become a millionaire with discipline and hard work.
- Wealthy people make risky investments
- Reality: 79% of millionaires used their employer sponsored retirement plans
- Wealthy people take stupid risks to get rich quick
- Reality: The average hit millionaire status at 49 years old
- Welathy poeple have a big leg up in education and careers
- Reality: 88% of millionaires graduated with a bachelor's degree compared to only 33% of the general population. Almost 50% had a "B" average or lower in school
68% of millionaires with a college degree never took out student loans
Myth: Wealthy people have high paying jobs
-⅓ of millionaires never had a 6 figure household income
-Top 3 careers were engineer, accountant and teacher
-Only 18% own a business
An excuse is a lie dressed up as an explanation
53% identifying as introverts and 47% as extroverts
Five Common Attributes of Millionaires:
- Take personal responsibility for their money decisions
- Goal oriented
- Hard workers
- They understand wealth building takes consistency
- Practice intentionality with their finances, living on less than they make and exercising discipline in their budgeting
50% of baby boomers have less than $10,000 saved for retirement
Taking personal responsibility for their finances is the first step in getting where they want to be.
86% of millionaires learned the importance of saving and taking control of their money from their parents.
85% of millionaires describe their parents as savers. Of those, 13% said their parents were extreme savers
“If you’re the problem, that means you’re also the solution”
86% of millionaires actively get advice from mentors
68% of millionaires used an investment pro to achieve their high net worth
94% of millionaires say they live on less than they make, compared to 55% of gen pop
95% of millionaires save up for big expenses, compared to 67% of gen pop
93% of millionaires use coupons when shopping
Drive older cars with no car payments
Typical millionaire spends $200 or less per month on restaurants
96% have never had a past-due bill
73% have never carried a credit card balance
92% of millionaires develop a long-term plan for their money
70% of millionaires saved more than 10% of their income throughout their working years.
96% of millionaires enjoyed what they did for a career, and 64% say they “loved” their jobs.
Millionaires never stop learning
Millionaires prioritize their personal health. 80% workout at least three times a week.
71% of millionaires never give financial support to their children over the age of 25
80% of millionaires are married, 63% with their first partner
Financial independence can be broken down into four things:
- Flexibility - do what you want rather than what someone else wants
- Margin - no one else has a claim on your money
- Options - power to make choices
- Availability - freedom to be where you want when you want