Have you ever wondered how millionaires spend their money and live their daily lives? Do they waltz into the fanciest restaurants with gold-plated cutlery and indulge in multi-course meals from Michelin-starred chefs? You may be surprised to find out that the truth is quite different from what you might expect. Recently, The National Study of Millionaires by Ramsey Solutions revealed that millionaires do indeed eat out, but their monthly expenditure on restaurants is far less than you'd think.
Millionaires are careful with their spending
It may be hard for some to believe, but even millionaires are very careful with their spending habits. In fact, 94% of millionaires stick to a budget and live on less than they make. More importantly, almost three-quarters of those millionaires have never carried a credit card balance in their lives! It just goes to show that financial responsibility is key, no matter how much money you have in the bank.
The study found that millionaires spend $200 or less each month at restaurants. It's a small amount of money when you think about it. You might spend that much in a single week! So, how do they manage to keep their restaurant spending so low? One key factor is that millionaires seem motivated to save money. In fact, the same study found that 93% of them regularly use coupons when they go shopping.
Millionaires tend to be more practical and money-savvy than we might think, with the majority following a budget and taking advantage of deals and coupons. It's important to understand that these simple habits can help anyone improve their finances and build wealth over time.
Millionaires are made, not born
Becoming a millionaire doesn't happen overnight. According to the survey, only 5% of the millionaires surveyed reached that feat in less than 10 years. It took most of them 28 years to become a millionaire, with 49 as the average age they reached the milestone.
The survey found that the key to financial success and becoming a millionaire was through disciplined investing. Eight out of 10 invested in their workplace 401(k), 403(b), or equivalent company retirement plan. Millionaires took advantage of the free matching from their employers and the tax benefits. In addition to their company investment plans, three out of four also invested in their brokerage accounts, Roth IRA, or a traditional IRA.
"Three out of four millionaires (75%) said that regular, consistent investing over a long period of time is the reason for their success," the survey stated. "So, the story about the young computer genius who developed an app that earned millions overnight is the exception, not the rule."
Even if you strike it rich one day, it's important to remember to manage your personal finances wisely. You may be as surprised to learn that the millionaires in the study are not interested in flaunting their wealth with expensive dining experiences. Not only did they focus on saving and investing, but more importantly, they focused on their spending habits. So take a page out of the millionaire handbook and start living within your means. You never know what small change in your daily routine could make a substantial impact on your financial future.
