So, who wants to be millionaire? On the show by that name, Regis Philbin asked that question –– and many others –– a few years ago. We enjoyed watching those smart people trying to “earn” $1 million answering difficult, multiple choice questions; knowing that the odds of making it to $1 million were not in the contestants’ favor. Most of us, with little chance of being heirs to a million dollars, know that the only way we will ever see that kind of money is the old fashioned way– to earn it. And not by answering questions! The questions for us become: What does it take to become a millionaire; and what does millionaire mean, anyway? A friend told me of an experience he had in a European country. Sitting in a street cafe, he saw a beautiful woman in an elegant dress and very high heels come out of a nice restaurant. How does your mind finish that scene? Her limousine pulled up to gather her? The concierge brought around her tiny sports car? No, to my friend’s delight, she straddled a moped and rode away. How incongruous! She chose not to display one of the items most associated with wealth– or the appearance of being wealthy– an expensive automobile. The scene so affected my friend. Was she wealthy– or maybe even a millionaire? How could you tell? How would she define being wealthy? Does it differ from your definition? How do define wealthy? How would you know if you or your neighbor made it to millionaire status? In Marketing to the Affluent, Dr. Thomas Stanley, (Georgia State), instructs sales professionals on developing strategies for prospecting wealthy clients. Dr. Stanley’s research based discussion includes identifying the wealthy, unprospected client. Appearances can be deceptive! The point, also made in The Millionaire Next Door, is that culturally we tend to define wealthy by visuals such as displaying a high possessions life style. But huge homes, expensive cars, jewelry and trips do not always correlate with being wealthy. In fact, Dr. Stanley calls this the “big hat, few cattle” approach to life. The “big hat” high status lifestyle can mean that the individual has only accumulated limited net worth (investments, cash reserves, retirement and low indebtedness) because the focus is on possessions or the appearance of wealth. There is nothing wrong with enjoying a lovely automobile, placing your major investment in your home or deciding that two month’s salary spent on an engagement ring is an excellent investment in your marital future. If your self–image depends on possessions financed at the expense of planning for emergencies, education and retirement, you could find yourself in the “few cattle” category. By Dr. Stanley’s definition you would not have the discretionary income to be considered a wealthy prospect! In defining “millionaire” or “wealthy” by behavior, not appearance, what can the 3.5 percent of American households that have achieved "millionaire" status (Millionaire Next Door) teach us? First, 80% are first generation wealthy for their families; they did earn it. Second, two–thirds of those still working are self employed. The millionaire group is well–educated and includes such “dull–normal” (MND) occupations as paving contractors, pest controllers and coin and stamp dealers as well as "higher status" occupations: doctors, bankers, lawyers. (There are more similarities. The books, including Millionaire Woman Next Door are easy to find and read!) Two common factors are starting places whatever the circumstances: meticulous planning/budgeting and living below your means. Carefully planning and making financial decisions, the millionaire household prefers cash reserves, investments, and a “go to Hell” fund over financing a high–status appearance lifestyle. For us seeking to live successfully on all levels, these choices represent freedom. I have sat with many clients in the middle of a major crisis– contemplating divorce, working through bankruptcy, hating their current work situation or unable to participate meaningfully with their families– who feel stuck. They lack the freedom to make needed changes in their lives because of how they have defined (or not) true wealth. Possessions– and the payments they are still making on them– own them; keeping them from quitting and going back to school; taking that marriage saving vacation, or even seeking a medical opinion not paid for by insurance. Instead of running their life– their life is running them. When we discuss becoming a millionaire, then– we are not only talking finances; but developing a truly rich lifestyle. Chasing millionaire status will not bring security and contentment– evaluating and prioritizing choices will, according to Dave Ramsey, in More than Enough. Working in the automotive industry, loving cars, and needing to display your vehicle as part of your occupation is different from needing the car that will let your neighbors know “you’ve made it”. If old homes are your passion– then forgoing trips in favor of renovations could bring greater contentment. Renting is fine if your greatest satisfaction is leaving for a trip in minutes and watching other investments grow. Budgeting, planning, and living to allow for the purchase of a beautiful piece of local art; taking time off to volunteer at your children’s school, or giving to your favorite charity will produce a balance sheet with assets– in all columns. Oh, and the lady on the moped? I just bet she was wealthy; in the ways that matter.
