This Nurse Believes Every Nurse Can Become A Millionaire - Ep. 65
The people that are typically glamorized as millionaires usually have less money than you think. Here are the characteristics of the average millionaire. Chances are, they are right there in your neighborhood.
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TRANSCRIPT:
Naseema McElroy: [00:00:00] Hey Nurses on FIRE. This episode is the special one, a special one just for you. Because I believe that you have every thing that it takes to become a millionaire. And it just brings to mind one of my favorite financial books, The Millionaire Next Door. And I stumbled upon this article, by J D Roth, called the Nine Lessons of Wealth Building from The Millionaire Next Door.
And I'm going to share these lessons with you to prove to you that you have what it takes to become a millionaire. And some of the mindset shifts are something that are actionable, things that you can tell to get there. So if you want to become a millionaire, it's super important to start by studying the behaviors of the people who have done it.
and like I said, the millionaire next door is a book that I highly recommend because it shares. Some of the surprising secrets of America's most wealthy people written by professor Thomas Stanley and William Darko. It's main premise is that people who look rich may not actually be rich. It's really.
Those people who are right next door to you that are the unassuming ones that actually have the biggest wealth. It's not the people that drive the fanciest cars or have the biggest house. And those are typically the people that we aspire to when we think about milk and heirs, but becoming a millionaire, I feel like it's easier than you think, but it's a total mindset shift.
And this is what I got when I read this book. So actual. Millionaires tend to live in middle class, middle income neighborhoods, drive economical cars, wear the simplest of clothing and jewelry. So, so if you haven't read the book, I highly. Recommended. it's an older book, like I said, but it really has some gyms in it.
So lesson number one, takeaway from the millionaire next door book is that income does not equal wealth. And I know a lot of people get stuck on this and they go to this place on, if I made more money, then I would become wealthy. Yes, the higher income households it's tend to have more wealth than lower and middle income household.
But the size of the paycheck only explains 30% of the variation of wealth among households. It really matters how much of that income is invested. So let me say that again for you. It's not about how much you make it's about. How you spend what you make it's about that gap between your earning and your spending and in that gap is how much you're able to invest.
Okay. Okay. On average millionaires invest nearly 20% of their income. All right. So lesson number two is work that budget. The majority of millionaires have a budget in those that don't, they have what the authors called artificial economic environment of scarcity, more commonly known as a pay yourself first.
So in other words, they invest a good chunk of their income comes before they spend it. I call that. The anti budget, meaning that you know how much you're going to invest beforehand. You meet that number and then you don't really have to budget for little things like coffee, lesson number three is know where your money is going.
Can you honestly ansewr the question how much money your family spends per year for food? Clothing and shelter, most millionaires are likely to track their spending so they know where their money is going. Lesson number four, know where you want your dough to go. So it's similar to the last lesson, but another two thirds.
Okay. Millionaires answered strongly that they have a clearly defined set of daily, weekly, and yeah. And your and lifetime goals. So they know where they want their money to go. Lesson number five, time is money, all this budgeting and goaling takes time, but millionaires are willing to spend it because they understand that spending the time to planning their investments is the way to grow.
wealth, you don't have to earn big six figure salaries in order to plan. So there is a strong, positive correlation between investment planning and wealth accumulation. Lesson number six is love the home you're in. Now this is a big one for me, cause y'all know if y'all been following me. I moved four times in the last three years.
Yes, it's ridiculous. But how often you choose to move? And your choice of homes will determine your ability to accumulate wealth. So in the millionaire, next door, half of the millionaires have lived in the same house for more than 20 years. I couldn't even imagine that, but this is a lesson in wealth building because I can tell you firsthand moving is super expensive.
Okay. And Thomas Stanley also says that nothing has a greater impact. On your wealth and your consumption, then your choice of how and neighborhood, if you live in a high price home, right in an exclusive community, you will spend more than you should in your ability to save and build wealth will be compromised.
So people who live in million dollar homes are not millionaires. They might may be high income producers but they usually fall into the trap of lifestyle inflation because they're trying to emulate the millionaires around them. Now this comes with a definite caveat because a million dollar home in the Bay area.
Right. Is most likely the home store as a medium home prices, about $750,000. The less take this with a grain of salt. But the bottom line is, is thinking that you needed to live in the best, most expensive and the most exclusive neighborhood not mean that you're wealthy because usually you're, you'll spend more money just trying to keep up with the Joneses.
And so living in a modest home and a nice. Middle-class income is usually your sure to wealth. and so there are several statistics that he sides to back this up. 90% of millionaires live in homes, valued below $1 million, 28.3% live in homes, valued at less than.
Then $300,000 on average millionaires have mortgages that is less than one third of their home values. That is one of my roles. If you really want to reduce your housing bill, then there are like those 67,000 millionaires that live in mobile homes. Hey, don't knock it. I know plenty of people who are financially independent that live in mobile homes.
I'm not really about that life. I thought about it. It looks real cute, but, I don't know what these kids' minds, if that's possible for me, but if you're looking to buy a home, the advice is that the market value of your home. Should be less than three times, your household annual realized income.
Okay. So if you make a hundred thousand dollars a year, the house you purchase should be less than $300,000 . Lesson Number seven. And this is another one that I struggle with is love the spouse you're with, if you haven't known how I am a divorcee, but the majority of what people are married and stay married to the same
a person. So of course, marriage shouldn't just be about, about money, but several studies have shown that people who are married, accumulate wealth, more than those who are single or divorced, however, it's super important to marry someone who has the right financial habits, who is right. On the same path with you financially, the majority of the millionaires households that were studied, the husband was the breadwinner and tends to be more frugal, but the wife was even more frugal.
Oh, I mean, like it's usually reversed in nursing households where the wife is usually the breadwinner or, you know, majority of my audience are women nurses. So not to talk about ' male nurses, but we are usually though, Heads of households and this kind of marriage scenario, the woman would be the frugal one, but the husband.
Yeah. We'll be making sure that things are locked tight. Okay. This is a quote from the book. A couple cannot accumulate wealth. If one of this member is a hyper consumer, like is a super spender. All right. Lesson number eight, do not drive away your wealth.
And this is another one that, you know, I don't really follow that much, but I love a nice car, but the majority of millionaires own their car rather than lease while a quarter of they'll study may drive the current year's car. Another quarter drives the car that is four years or older. So more than a third tend to buy used car.
And the most popular car is. Drum roll toy. Toyotas okay. Who is driving all those BMW's or Mercedes it's not the millionaires, but the Tesla drivers are a millionaire. You guys just kidding? So 86% of the procedures are luxury. Cars are bought by non millionaires. In fact, the authorize that one in three people who traded in their old car for a new one or upside down.
Oh, more than the trade in value. Okay. So it's tough to get wealthy if you're upside down on your payments. And the final lesson here are, the rich are different. They're happier. Okay. So to this point, you might be wondering like, whether all this living below your means is worth it. So, and budgeting and all this stuff that is associated with deprivation.
Listen. Okay. Most millionaires have bigger portfolios, but they're also a lot happier. So the research shows that financially independent people are happier than those in their same income, age and cohort who are not financially secure.
And this is what I have seen in my own personal life and the lives of people that I have coached. Once you get to a certain level of financial freedom, you're able to live life on your own terms, and that gives you so much more. Emotional stability. Okay. So there is a huge peace of mind you get from becoming financially independent.
And there's also a double benefit to this. So not only are you able to save more when you live below your means and you ultimately have less expenses, and so you don't necessarily have to work. As much or as hard. And so this opens up a whole new world of opportunity for you to maybe cut back your hours, maybe travel the world to pursue a passion in what you've always had.
So there's all these bonuses to making sure that you're. Living below your means. So again, I'm going to review the nine lessons from get rich, slowly sight, from the millionaire next door book, lesson number one, income does not equal. Well, lesson number two, work that budget lesson number three, know where your money is going?
Lesson number four. No, what you want your money to do? Do know where you want your money to go. Lesson number five, time is money. Lesson number six, love the home you're with lesson number seven, love the spouse that you're with lesson number eight, don't drive away your wealth and lesson number nine. Rich people are different.
They're happier. So I hope those lessons. Give you an idea of what it really takes to become a true millionaire and lets you know that you have the ability to do that. And I want to take this opportunity to introduce a special program that I am having to teach you these skills to become the next nurse millionaire.
Now I am taking a very small group of nurses under 10 nurses and we are going to walk. Through the fundamental steps of wealth building week by week. Now this is a serious group of nurses that really want to build wealth because this is going to be high touch, super impactful training.
That's why I'm limiting the amount of people who I can accept into this program because we are going to get really, really good results, but it's going to be super duper hands on with a lot of accountability is what you guys have been asking me for. And I am here to delivery. So I'm going to be having a wait list and an interview process for this program.
The intentional finance wealth builder accelerator is designed for those who were looking for that edge in their finances and in their lives. So if you feel like you've done all the things you were supposed to do to get where you are in your nursing career, which you're still not where you want to be financially, the accelerator is absolutely essential.
The wealth builder is your chance to immerse yourself with. Extraordinary nurses who will push you, support you and lift you like never before the promise of the wealth builder is simple. It's to facilitate you becoming that next nurse millionaire, a seven figure nurse to catapult you past your comfort zone and into a whole new world of possibility and quantum growth.
You'll start to see immediate. Changes in your money, but lasting change takes time. And that's why the members of the wealth builder accelerator get access to daily support and accountability inside our intimate group, weekly financial coaching calls and hot seats. Hours of recordings with financial experts, all strategically designed to effectively support you to become a seven big year nurse.
This is application only. Program and spots are super limited. So 90% of the magic of the accelerator is in the members. Okay. You guys are what truly makes it special. I am truly honored and humbled to have attracted such a group of extraordinary and successful nurses who have helped.
Push me towards a whole new level. A lot of the people you've heard on the podcast and for this reason, the admission to the accelerator is only available through application and an extensive interview process. So are you a right fit for the program? Are you a nurse looking to make a big leap forward with your finances?
Do you work and play well with others, even if you are introverted, like some of the people in the program, are you willing to be open, coachable and vulnerable? If so this accelerator might be right for you. So the next step is to join the notification list in order to do that, you will go to nurses on fire podcast.com/waitlist to get added.
Onto the notification list and look forward to hearing more about the program.
Hey there I’m Naseema
My dream is for everyone to know that financial independence is attainable with a little intentionality. Learn how I can help you finally break the cycle of living paycheck to paycheck.
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