The Millionaire’s Mind

It was a crisp afternoon when the TV show “hillbilly” lifted his gun, aimed it sure and true, and squeezed off a shot. But Jed noticed that his shot had gone into the ground, and a black substance began to bubble up.  Bubbling crude, oil that is, black gold, Texas tea.

Well the next thing you knew old Jed was a millionaire, with family members Granny, Jethro, and Ellie May.  Everyone knows that is how millionaires are made - a shot in the dark, a lottery ticket, or picking the elusive box with Howie Mandel. “That is the way some people look at life,” said Thomas Stanley, a former college professor who has made a career out of studying the wealthy.

In reality, creating wealth is like a great wine—it matures over time.  But because most people don't look at wealth that way, they will never be wealthy.  They are after immediate gratification.

In his book "The Millionaire Mind", Stanley studied the five percent of American households that have over a million dollars in assets.  Usually he or she looks more like Jed or Ellie May than a millionaire. He or she drives a used car, and because of values and his or her faith, has quietly amassed a small fortune.  Most millionaires lead a typical life—most are married and few get divorced, says Stanley.

He is quick to point out that income is only part of the equation. It is what people do with their income that determines their financial wealth.  In this country we have a lot of people who make a lot of money but spend it all. The wealthy become so the old- fashioned way, by working hard, spending little, and saving a lot.  The wealthy plan their lives, and live their plan.  They are smart, but unlike many people with a high IQ, they aren't so smart that they refuse to seek and accept help from others.  They are in a long-term relationship in their marriage, and they would just as soon play cards with friends on a Saturday night as jet off to Las Vegas.

In the high-technology areas, we always talk about the winners, but we never talk about the losers. Stanley says it is just like the lottery; one person in five million wins the lottery and that news is in the newspaper. But if they had to list the 4,999,999 people who didn't win, it would take up five newspapers.

Stanley says there is much more to attaining wealth than simply showing up at the right place at the right time.  Slow and steady still wins the race. Many people don’t understand the idea of seeds; they are always eating the corn instead of using it as seed.  They are crunching down on the acorns instead of building oak trees.  It is unfortunate. 

Stanley found many wealthy individuals did not have post-secondary studies, but the individuals do have confidence, would flee bureaucracy and are entrepreneurial.  Stanley would say that after interviewing more than 1200 millionaires, the common thread is that they would work hard, focus, pick a vocation they love, and pray.

It’s a misconception that the wealthy hoard. In fact, they don’t hoard. They are not stingy.  The wealthy may be conservative with money, but that doesn’t mean they are not generous.  Stanley points out that one tenth of one percent of the income producers pay 17 percent of the income tax.  But most of them also give significant amounts of cash to causes, and many give something that is harder to replace than their money -- their time.

Being wealthy doesn’t make a person any happier.  There are miserable millionaires.  What is surprising is that most millionaires can’t be recognized as they live below heir means.