The lowdown: This Everyday Millionaires summary based on Chris Hogan’s book demystifies the simple process of becoming a millionaire in America, using a systematic approach.
According to a study in 2017 by CNBC Money, there are about eleven million millionaires in America. To put this in perspective, the United States has a population of roughly 330 million people.
This means you probably know one or two millionaires yourself. Most of them are regular people that chose to make the sacrifice and work toward making their dreams reality.
One major myth around millionaires is that they earn their money through inheritances or lucky breaks, but as you read through the book and you see the numbers, you will be surprised how many people had it worse than you and still achieved the American dream.
In fact, most millionaires in America today work as Engineers, Teachers, and Accountants – everyday jobs. Everyday Millionaires sets out to give you the tools and mindsets that these people use to build their wealth.
To summarize, three major lessons I learned from reading the book were:
- Set goals and work SMART toward achieving them.
- Be responsible for your financial decisions.
- You never get rich by making stupid decisions.
Lesson One: Set goals and work SMART toward achieving them
S – Specific
M – Measurable
A – Achievable
R – Relevant
T – Time-sensitive
As said earlier, the American dream is still alive and achievable, though it takes strategic planning and religiously following a time-tested regimen.
As always, there will be doubters and naysayers, but the only way to turn them is by actually doing it. Until Roger Bannister did it on May 6, 1954, nobody alive believed anyone could run a mile in less than 4 minutes.
Michael Phelps, even though he was blessed with an athletic body, dedicated over 6 hours daily training totalling over 50 miles every week.
The fact that over 79% of the people interviewed by Chris Hogan for this book claimed not to have any form of inheritance, it speaks volumes to the effectiveness of the above-stated plan (SMART).
Lesson Two: Be responsible for your financial decisions
Famous Philosopher, Sartre claimed that man was not responsible for the circumstances surrounding his birth, but how he chooses to live his life from that moment on is his choice. People try to shirk from responsibilities, shifting it to someone else, while others even wish them away. They translate this same attitude into their finances, which can spell serious trouble.
Among those interviewed for this book, 56% of them were worried about their retirement, but very few actually had solid work laid out for that period. Deciding to save up for your retirement is a step you have to make on your own, actively. It is only after you decide that you can start to work towards it.
Lesson Three: You never get rich by making stupid decisions
You think impulsive, audacious decisions are what millionaires make all day? The answer is no! Yet another myth broken by this book.
Rich people attain their status by making calculated financial decisions – perfectly balancing risks and rewards.
Sometimes the risk is just too great, and other times, the reward is simply too small. Imagine accruing huge amounts of debts to bag a degree from a private university when you can get the same degree from a public school. This is a classic example of a poor decision. When do you pay off those loans and start to accumulate wealth in the direction of your American dream?
My Personal Takeaway
Some frugal planning, spending less than you earn, setting achievable goals for yourself, and you will get there. Never get disappointed or discouraged because most people never become millionaires before 49. So, you are still on track. Fast cash is not a sustainable plan, which is why there are not any millionaires using this blueprint.
Put into Action
- Know your present position.
- Set achievable goals – short and long term.
- Seek professional advice.
- Employ a financial advisor that works for you.
- Set time limits to guide your process.
You should consider buying this book if…
As a person with goals and dreams, you can find something to help you on your journey in this book. The process is just as important as the result, and what better way to learn than from people who have trodden the same path as you.
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