20 things the Millionaire next door DOESN'T do...

**Greebo** · 07-09-2008, 07:26 PM

Original Article: http://www.marcandangel.com/2008/04/...r-does-not-do/

Found this link on the DR TMMO forums, thought I'd share it. Loved it so much, wanted to repost it as well.

1. Pay for Lawn Service – You could save $150 a month, get some healthy exercise and maybe even a bit of a tan just by mowing your own yard.
2. Go to a Hair Stylist – Even the cheapest barber shops charge men $15 - $20 for a haircut these days. If you’re a woman, it may cost well over $50 a visit. Dying your hair? You’re broke!
3. Use Time as a Measurement for Success – The millionaire next door measures success based on output quality, the results. The amount of time spent on something means nothing if the results do not meet the expectations.
4. Buy Brand New Cars – Why would anyone pay the full retail price worth half a year’s salary for the fastest depreciating assent on Earth? We are brainwashed!
5. Carry a Monthly Credit Card Balance – Carrying a monthly credit card balance only makes sense if you enjoy poverty. Monthly interest payments can add up to hundreds of dollars over the course of a year. Do not buy “stuff” right now that you cannot afford to pay for in cash right now!
6. Eat Out on a Regular Basis – With the recent price increases in corn, wheat and dairy products, preparing your own food is already expensive enough. If you eat out you will pay triple the price. If done on a regular basis you will waste a few thousand dollars a year.
7. Think He Knows It All – People who think they know it all stop learning and thus become unaware of new opportunities. Once you lose awareness, you lose.
8. Socialize with People Who Waste Money – The people you socialize with influence your habits. It is impossible to save money if you constantly hang around people who blow it all.
9. Desire Instant Gratification – You have to think long-term to attain long-term success. The millionaire next door desires long-term deferred compensation over instant gratification.
10. Pay Retail for Name Brand Clothing – You can easily save hundreds of dollars a year on clothing purchases by waiting for sales or shopping at discount retailers like Marshalls. Better yet, avoid name brand clothing all together.
11. Keep His Money in a Checking Account – If you want to increase your wealth you have to set your money up to make more money. Most checking accounts yield little to nothing in interest. Think long-term (5 years +). Invest in quality stocks, bonds and mutual funds, especially those with high yield dividends and interest. Or buy some land in an area with growth potential.
12. Replace What is Not Broken – The millionaire next door fixes things. Fixing something is usually significantly cheaper than buying a brand new replacement, especially if you fix it yourself.
13. Visit the Tanning Bed – $25 a month for skin cancer? Where do I sign up? If you want a tan, move to Florida. For those that live in Florida and still go to the tanning bed… WOW!
14. Impulse Buy – Impulse buying wastes money and leads to a cluttered house full of “stuff” you don’t need or use. If you see something you like at the mall, walk away. Think on it for a day or two. If it still holds value in your mind, maybe it’s worth buying. Never buy something the first time you see it.
15. Waste Time on Senseless Activities – They say time is money. In actuality, time is far more important than money. Time is your life. If you waste it, you will fail.
16. Focus His Attention on Negative Obstacles – If you focus all your attention on negative obstacles, you will lose sight of the finish line. You can’t get there if you can’t see it.
17. Bet The Farm – The millionaire next door takes evenly weighted, calculated risks on long term investments. If you go “all in”, your gambling, not investing.
18. Fly First-class – Would you pay $400 to sit in a leather chair for a couple of hours? That’s exactly what you do when you fly first class. Huge waste of money!
19. Rent – The millionaire next door has a long-term mindset. In the long-term, owning something is always more cost effective than renting it. The key is to purchase quality products for long-standing use.
20. Earn Every Dollar He Makes at His Day Job – Two words: Passive Income. You can be sure the millionaire next door invests his money wisely. These investments create a solid passive income stream that grows over time. If your money isn’t making you more money, you’ll never be wealthy.

Emphasis on the main points - REALLY EMPHATIC emphasis on two total killers, IMO.

**frugalandsimple** · 07-09-2008, 07:31 PM

Thank you for the reminder and very true too.

**AmyBoz** · 07-09-2008, 07:37 PM

Great article!!! Thanks for sharing!

**Momof3girls** · 07-09-2008, 08:34 PM

That was a great article! Thanks!

**Persimmon Lace** · 07-09-2008, 09:55 PM

The only one I don't agree with it the socializing thing. I don't care what my friends spend or don't spend their money on, as it's their business and not mine. If you're not strong enough to have friends in varying degrees of financial peace or hardship it's not their problem it's yours. We have good good friends who are just frugal as we are and some I worry about, but it's their lives not mine.

**DJ1972** · 07-09-2008, 11:44 PM

All good points!

**Persimmon Lace** · 07-09-2008, 11:47 PM

We also live next door to "the Millionaire" next door and we love him, he's a hoot.

**Drgnfly423** · 07-09-2008, 11:48 PM

Excellent article....I wish I could forward it to some people I know with out offending them! LOL!

**homemaker66** · 07-10-2008, 08:38 AM

Great information. Thanks

**Russ** · 07-10-2008, 08:45 AM

Originally Posted by Drgnfly423

Excellent article....I wish I could forward it to some people I know with out offending them! LOL!

Doesn't this just kill you? I would love to give it to someone but he would turn beet red with anger for even suggesting it. Some people don't and never will get it.

**Ceashels** · 07-10-2008, 09:04 AM

I think if I printed it on a tee shirt more people would be interested in reading the information.

**Greebo** · 07-10-2008, 09:36 AM

Originally Posted by Ceashels

I think if I printed it on a tee shirt more people would be interested in reading the information.

What? Staring at your boobs? No - no - no - I was ..um..reading #3! Yah!!!

**larabelle** · 07-10-2008, 09:45 AM

Great information thanks for sharing it.

**PrairieRose** · 07-10-2008, 09:57 AM

I agree with most of them but if I limit my friends to those who only spend wisely, I'm gonna be pretty lonely. Also, only my hairdresser ($20 every 6 weeks...and I'm not going to the barber!) knows for sure....(but whatever dying, highlighting, etc. that gets done.....I do myself

).

**Greebo** · 07-10-2008, 10:20 AM

A note on the socializing thing...

I have *never* met or heard of a person successful in any field, including money, who advocated hanging around with unsuccessful people. I've only ever heard unsuccessful people saying it doesn't matter.

So get better friends.

Seriously. Look - the people you associate with DO influence you. If you have an excellent plan to get your financial life on track, but your friends are expecting you to do this with them, or that with them, and aren't equally careful with their money, you will find yourself in a conflicting situation, and peer pressure, at ANY age, is a tremendous pressure.

Its true about morality, its true about behavior, and its true about money - if you spend your time hanging around with broke people who do broke people things, you'll make things a lot harder on yourself. On the other hand, if you hang out with people (even broke people) who do RICH people things, you'll have a support group with the same goals, and you'll all reinforce your good behavior.

Painful pill, but IMO, rock solid truth.