A recent study looked at thousands of millionaires across the USA to determine factors such as spending habits, debt, investments, income streams and the types of products they purchase.
The logic behind the study was to help educate and train those aspiring to the level of wealth around their own spending, budgeting and saving habits.
This study looked at individuals who’s net wealth exceeded one million US dollars. This doesn’t mean they had one million in the bank or hidden under a mattress but also means they are not part owners of property and items owned by banks and other lenders.
Interestingly the study also looked at what people perceived to be the average lifestyle of a millionaire and concluded that those who do not fit this criteria are delusional about how much one million dollars is. The study found those aspiring to be in this category perceived the lifestyle to include private jets, mega mansions and super cars, a modern day Gatsby. This fictional picture of wealth in 2024 is closer to that of a billionaire or as many advisors point out, is completely False and is built on debt.
The reality is there are actually more millionaires walking around amongst us than you would care to think. People with this level of wealth are far more common than you would think. The difference is these people created the wealth by making smart calculated decisions with money and one of those is around the amount of money you pay for a depreciating asset. Other factors these people take into account is interest rates on the monthly car loans and in majority of cases they purchase the vehicle outright and don’t put a vehicle on finance resulting in a far more modest vehicle.
Vehicle manufacturers are not in the car selling business, they are in the finance business and play the same game as investment bankers, stockbrokers and alike. The car is a means to sell you finance at a fixed interest rate and brainwash the middle class into believing that you will always need a (or in some cases multiple) car payment in order to remain in the latest luxury vehicle.
The mentality of “always having a car payment” is the same mindset that traps you in middle class. Take a lesson from the real millionaires.
We assume the millionaires are in Porsche, Audi, BMW, Range Rover and alike. The reality is owning these cars is usually done on finance and millionaires, don’t get into unnecessary debt.
In a related article we recently unpacked the true costs of owning a motor vehicle. These millionaires have done the equations on these costs and using that data have made calculated purchases.
Owning a motor Vehicle: You cant afford it.
The two most popular brands owned by millionaires in the USA are Honda and Toyota.
