How The Marketing Industry Continues to Convince Average Americans They Know What a Millionaire Looks Like
The average American millionaire owns less than 6 bottles of wine in his or her home, and paid $13.09 to $14.54 or less for each bottle. They shop at stores like Costco, Target, and Wal-Mart.
A few days ago, I quoted something from one of Dr. Thomas J. Stanley’s books: “In the United States, there are three times more millionaires living in homes that have a market value of under $300,000 than there are living in homes valued at $1 million or more.” For the past few days, I’ve been studying more about average household income in the United States and, specifically, the purchasing habits of the wealthiest Americans. It is exactly what I’ve experienced in my own life, and fits precisely with those I know. Yet, so many of my friends and family continue, almost obstinately, to attempt to emulate a certain “lifestyle” by building a bigger house or buying a nicer car, without first getting their financial foundation set.
Most Millionaires Never Made More than $80,000 in Annual Income
A perfect example: I see friends in New York order Grey Goose vodka, which Stanley discusses in his book. Chemically, it is virtually identical to every other vodka brand because almost all vodka companies use a “base” from one of three suppliers (with Archer-Daniels-Midland being the largest), with the base shipped in giant tanker trucks across the highways, or in railroad cars. So, for all intents and purposes, “the Goose” is identical to Smirnoff. Put plainly, that $60 bottle you use to signal that you are wealthy when, in fact, you are broke and have credit card debt? It wasn’t that long ago it was sitting in the back of a chain-smoking truck drivers’ cab at a dirty rest stop in the middle of Nebraska.
Buying the luxury items does not make you a success. The success comes from having lots of cash coming in, little debt, and the ability to be financially free so you can take control of your own life and spend time how you want with your family and friends. You are not a success because you wear Chanel glasses. They actually get you further away from your goal. You are a success if you have the cash to pay for the Chanel glasses using dividends, interest income, and profits from your investment holdings. The difference is like a war hero. It’s against the law to wear medals you didn’t earn in combat (seriously). In the economic world, however, you can fake it by purchasing the “badges” even if you do it on credit at 30% interest and haven’t earned them. Prada, Gucci, Montblanc, Grey Goose, Burberry … it doesn’t matter. If you are financially independent, these are legitimate, wonderful ways to award yourself. I actually own $200 Burberry ties and $1,200 Montblanc pens. The point is, those things came long after I had built my first business and was on to my second and third, my retirement accounts were funded, my taxes were paid, and I had money saved for an emergency. (more…)
