The Millionaire Mind contains a chapter entitled “The Home.” The millionaires (733) in the book represent a fraction of the top 1% of wealth in America. On average their homes have a market value of approximately $1.4M (or about 2.5 times the original purchase price 12 years earlier). Their average net worth is $9.2M.
About 4 in 10 (39.9%) have no outstanding mortgage balance. Fully 2 of 3 (66.0%) have a mortgage balance under $300,000. The median number of bedrooms is four; baths, 3.5. What do most of these millionaires have in common? They, like the couple presented below, purchased their homes after they became wealthy. Most people (non millionaires), as detailed in Stop Acting Rich, who purchase expensive homes never become rich. “It takes the equivalent of 100 high income producing homeowners who live in pricey homes to produce just 65 millionaires. But . . . [for]. . . those who reside in homes in the less than $300,000 market value range. . . it took the equivalent of only 100 high income homeowners to produce 211 millionaires.”
After reading your book [The Millionaire Mind] we are convinced that we would definitely be described as “Balance Sheet Affluent.” Where can we start with our story? We are a teacher and engineer vice-president.
As documented in Stop Acting Rich, engineers and educators are significantly more productive than the norm in transforming dollars of income into dollars of wealth.
We never had children (our choice) and are now aged 42 and 51. We paid off our first home ($165,000) within the first three years of our marriage. After that we kept a bowl on the coffee table which we placed glass beads in, one representing each $1000 we saved. Our goal? To be financially secure, have the home of our dreams and never have to worry about money again. As years went by our constant goal was to add beads to that bowl.
We rarely went out for dinner or had take-out. All of our books, movie DVDs and magazines came from our local library. Each week our grocery shopping began at the 50% off rack and we basically learned to eat and appreciate what was on sale. Should we even admit that one of us even keeps a teabag on a trivet to be used for exactly one week?
We’ve been married for 20 years now and live in a 1.8 million dollar home which we paid cash for. We have no credit card debt and have enviable cars also paid for in cash. My wife, a teacher, is 7 years away from retiring and receiving her full 1.3 million dollar teaching pension.
While we probably, at this time, have now reached our initial goal of living well there are still some habits we cannot seem to break. We only go out for coffee, meals or movies if we can use gift certificates from my wife’s students. Our favourite book store is still the library and we buy most clothing and household items on sale only.
Our friends and colleagues laugh at us and describe us as being cheap. Thanks to your book, however, our response to them is that we are not thrifty, but that we simply “have the millionaire mind”. We do, however, have one small confession to make. We never paid full-price for your book. In fact we didn’t pay for it at all as it came from our favourite bookstore – the library!
. . .our beautiful home situated in [a] prestigious subdivision. We may not have the biggest home there, but it is completely paid for! We are not interested in impressing others because secretly we know that we have one of the most valuable possessions of all: The Millionaire Mind!