[quote style=”boxed”]“Frugal, frugal, frugal!”[/quote]
One-year blogging, one year wiser! It has been one year of blogging for me at work.life.what!?
This holiday weekend I decided to get out of the house and head to Indigo to peruse the personal finance section. One book caught my eye – The Millionaire Next Door by Thomas J. Stanley, William D. Danko. I flipped it open and scanned the table of contents – hmmmm, Chapter 2 “Frugal, frugal frugal” and Chapter 4 “You aren’t what you drive”. I started reading (sorry Indigo, no sale today but my budget thanks you), I was immediately shocked at what millionaires spend, or should I say, don’t spend on clothes and shoes. WOW. They are typically not concerned about social status or “social” name brand goods. Uh oh! Said the former Shopaholic in me. That is where I have gone wrong all these years.
The book talks of the inner workings of millionaires. You have heard the stories of the wealthy penny pinching every dollar, buying used cars and living quite ordinary lives. Well, think about it – how do you think they stay millionaires? They don’t live lavish, money wasting lifestyles. Us regular folk have the mindset that all wealthy people spend every dollar they bring in and have all the latest gadgets, fancy credit cards, yachts and cars. Believe it or not, they have the same type of credit cards and cars that we do. Over 9% of them drive a Ford!
[quote style=”boxed”]Millionaire quote from the book: “For every luxury car buyer that’s a millionaire, there are six that are not millionaires. So it’s the higher income, low-net-worth person that’s driving a luxury car.”[/quote]
What have I learned in my year of focus on finances, living single and finding balance?
Personal Finance lessons
– Focus and priorities are at the heart of all you do with your finances
– Weekly, monthly, yearly and lifetime goals are a must
– DO NOT work to spend!
– Learning my needs versus my wants in life
– Consumerism and materialism = mindsets I DO NOT want to have
– Finding ways and taking time to make my money work for me
Single Life lessons
– #1 it is okay to be single no matter what society says!
– Dating is a journey that should be fun, it’s not a necessity to survive
– Dating does not have to cost a lot of money
– Key rule – socializing and talking to people are important to expand my network of friends
The Balancing Act
– Cycling 1 hour and 30 minutes burns 800 calories. Exercise and a good diet are key to staying in balance
– Friends are an integral part of life
– Love and happiness: the proper approach to each day and the world
– Developing a strong mental foundation; having a house built on rock not sand to weather each of life’s storms
Being able to share the past year in an online journal has helped me beyond measure. The whole process of blogging, including all the research I do, has expanded my knowledge base greatly. I am better equipped to handle whatever life throws my way – my solid mental foundation is in place. Being responsible in life and with money takes great mental fortitude. The help and advice from friends and from reading other personal finance bloggers, has influenced the change you see now in my life. Where did it all start? I read Krystal Yee’s Give me back my five bucks and was challenged to improve my financial outlook.
Happy Birthday work.life.what!? May we have many more years of blogging and one day we will be an inspiration to someone too.Further Reading: Nine Lessons in Wealth-Building from The Millionaire Next Door via Get Rich Slowly