How To Realistically Become A Millionaire

Richard Reis
Feb 7, 2017 · 8 min read
Image for post
Image for post
By Richard Reis

Rule #1: Think Long Term

“ Most experts on wealth agree that the earlier one starts investing one’s income, the greater the opportunity to accumulate wealth.” — Thomas J. Stanley

Rule #2: Live Well Below Your Means

“Twenty years ago we began studying how people became wealthy. Initially, we did it just as you might imagine, by surveying people in so-called upscale neighborhoods across the country. In time, we discovered something odd. Many people who live in expensive homes and drive luxury cars do not actually have much wealth. Then we discovered something even odder: Many people who have a great deal of wealth do not even live in upscale neighborhoods” — Thomas J. Stanley

Rule #3: Know That Financial Independence Is More Important Than Displaying Status

“But the lavish lifestyle sells TV time and newspapers. All too often young people are indoctrinated with the belief that ‘those who have money spend lavishly’ and ‘if you don’t show it, you don’t have it.’ ” — Thomas J. Stanley

Image for post
Image for post

Break records at Louis, ate breakfast at Gucci
[…]

You know, white people get money, don’t spend it
Or maybe they get money, buy a business
I’d rather buy 80 gold chains and go ign’ant!”

Rule #4: Allocate Your Time, Energy and Money Towards Building Wealth

“On average, millionaires spend significantly more hours per month studying and planning their future investment decisions, as well as managing their current investments, than high-income nonmillionaires.” — Thomas J. Stanley

“They [Billionaires] write down everything.[…]They physically write down everything. I remember one of them said to me ‘the dullest pencil will always remember more than the sharpest mind’.

[…] Usually what they write? I noticed that they write how to save the most on taxes. They usually write that because tax codes change often and investments have certain tax benefits (or not) whether philanthropy or whatever the case is.

They look at it like this, ‘well I could put in my pocket $200M a year. I could either go and start a new business, […] or how do I save 30–40% on taxes that I’m gonna have to pay away? I already have the money, why lose it?’ ” — Daymond John

Rule #5: Have More Than One Source Of Income

“What is risk? Having one source of income. Employees are at risk…. They have a single source of income. What about the entrepreneur who sells janitorial services to your employers? He has hundreds and hundreds of customers… hundreds and hundreds of sources of income.” — Thomas J. Stanley

Bonus:

“Most people will never become wealthy in one generation if they are married to people who are wasteful. A couple cannot accumulate wealth if one of its members is a hyperconsumer. This is especially true when one or both are trying to build a successful business.” — Thomas J. Stanley

Image for post
Image for post

Thanks for reading! 😊If you enjoyed it, test how many times can you hit 👏 in 5 seconds. It’s great cardio for your fingers AND will help other people see the story.You can follow me on Twitter at @richardreeze to find out whenever others just like it come out.


Personal Finance Series by Richard Reis

Learn (in 52 letters) the finance basics used by early…

Richard Reis

Written by

"I write this not for the many, but for you; each of us is enough of an audience for the other." - Epicurus https://www.richardreis.me/

Personal Finance Series by Richard Reis

Learn (in 52 letters) the finance basics used by early retirees.

Richard Reis

Written by

"I write this not for the many, but for you; each of us is enough of an audience for the other." - Epicurus https://www.richardreis.me/

Personal Finance Series by Richard Reis

Learn (in 52 letters) the finance basics used by early retirees.

Welcome to a place where words matter. On Medium, smart voices and original ideas take center stage - with no ads in sight. Watch
Follow all the topics you care about, and we’ll deliver the best stories for you to your homepage and inbox. Explore
Get unlimited access to the best stories on Medium — and support writers while you’re at it. Just $5/month. Upgrade

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store