The unlikely millionaire

Source: Pixabay

Who wants to be a millionaire? Even today a million sounds like a lot of money to most people and even unimaginable to some. It is still the largest prize available to Premium bond holders. It still implies a certain lifestyle although it is a lesser sum than it was after decades of inflation.

The book “The Millionaire Next Door” introduced me to the idea that those who do not have a lavish lifestyle could well be millionaires whilst those who chased such a lavish lifestyle could well be not millionaires. By the time I read the book I was fairly well established in my financial habits and could certainly relate to the US dollar millionaires being referred to. I had a good income and yet modest habits that meant I could save and invest at a good rate.

If we consider the average level of earnings in the UK and the working life of an employee then earning one million pounds of pre-tax pay is certainly achievable. If all these earnings are spent then approaching one million pounds could be spent in a working lifetime. If, however, one is able to save a large slice of income then I believe this can be grown into a total of one million pounds over a working lifetime.

To do this will mean turning away from some lifestyle expectations, turning away from the millionaire lifestyle, and turning away from much conspicuous consumption. You can become a millionaire but it may not look much like the popular image of being a millionaire. You may have a smaller house, an older car, less holidays, less outings, fewer possessions but more money and wealth and freedom.

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