What does a Millionare Look Like? Hint, it is not what you think.

When I is high school, more than a few years ago, I had a good friend who lived on a farm.  My friend was very careful with his money.  One day I remember pointing to a beautiful sports car as it drove by and saying, "Look at that car!  Those people must be rich!"  My friend chuckled when he heard this and replied, "Those that look like they have money usually don't".  I had no idea at the time the wisdom those words held. 

Thomas J. Stanley authored a book a few years titled "The Millionare Next Door" followed by "The Millionare Mind" and "Stop Acting Rich".  In his books, Thomas described what a typical millionare looks like, where they live, what they wear, and what they drive.  We are not talking about the super rich as seen on the Lifestyles of the Rich and Famous.  We are talking about the regular millionare that all of us can one day become.  In a chapter titled "You Aren't What You Drive", Thomas describes that a typical millionare drove a car made by US car manufactures with the most popular model being the Ford F-150 pickup truck.  Contrary to popular belief, your typical millionare does not drive around in an expensive Porsche or Rolls Royce.  You may also believe that a typical millionare often drives a new car. In fact, only about 23% of millionares drive a current year model and about 12% of millionares drive a car six years or older.

The typical millionare believes that financial independence is more important than displaying high social status.  This includes large expensive homes and fancy clothes/jewellery. 

I am not against nice thinks.  However, I have come to appreciate that it is very difficult to accumulate significant wealth while accumulating expensive stuff.  On your journey to becoming wealthy it is important to "stop acting rich" and to start living like a real millionare.  A real millionare drives a regular car, lives in a reasonably priced house in a nice neighbourhood and wears a Timex watch. 

In the words of Dave Ramsey, a well know financial teacher from Tennessee, "If you live like no one else, later you can live like no one else".

The first step in your journey to building wealth is the decision "to stop acting rich" today so that one day you can become rich.

Why this blog?

Welcome to my blog “Financial Dividends”!  Before your eyes glaze over and you click the mouse key to move to the next site, let me explain why I started this blog. 

I am passionate about personal finance and investing!  My passion developed over time through the study of written material, finance courses and most importantly through real world practice. 

Through this blog, I hope to pass on the lessons I have learned, or that I am currently learning on building wealth.  The basic building blocks of building wealth have stood the test of time.  These are the same lessons that Grandma used to teach!   

The thoughts I intend to present to you will not get you rich quickly.  I have no idea how to get rich quick but I do know there are numerous “smart” people on the internet that have figured out the secret.  I will let you decide which approach is best for you. 

Building wealth is a process that takes time.  There are several steps to building wealth.  This blog will present the steps that we have taken, are taking or will be taking to become wealthy.  We are still in the process of building wealth. However, we have reached the latter stages of the process.  Steps that we took more than 25 years ago are reaping rewards today. I will share with you some our mistakes but, more importantly, our successes.

As a Canadian, some of the specific examples will definitely have a Canadian bias.  However, the majority of the posts and principles apply regardless of where you call home.

Only you can decide what it looks like to “become wealthy”.  For some it may mean having a net worth of one million dollars.  For others it may mean never having to work for a paycheque again.  For others it may mean being able to retire with the knowledge that you do not need the financial help of government or family to enjoy your remaining years.

Building wealth is a journey.  Like any journey, it is important to begin with the end in mind.  I welcome your feedback on my posts.  Please feel free to share the steps you have taken in your journey.

Once again welcome to my blog. I wish you well and trust that you will find my posts useful and will provide a simply roadmap to follow while on your journey.