True millionaires often live below their means, prioritize financial independence over social status, and consistently save and invest. Their wealth is a result of discipline, hard work, and smart financial decisions, not flashy lifestyles.

The Characteristics of a Millionaire

Wealthy individuals focus on protecting and preserving their wealth. They minimize risks, avoid unnecessary debt, and are cautious with their spending. Their financial strategy is more about defense—keeping what they’ve earned—than just aggressive accumulation.

Play Defense

Millionaires understand the true cost of consumption, recognizing that every dollar spent is a dollar not invested. They are mindful of how spending today impacts their future wealth, often choosing to delay gratification for long-term financial growth.

The true Cost of Consumption

Providing cash gifts can hinder the recipient's financial independence. Millionaires often avoid giving large sums of money to family members, understanding that it can create dependency rather than encouraging self-sufficiency and responsible financial behavior.

Cash Gifts are Bear Favors

Millionaires regularly evaluate their financial progress by comparing their net worth to their income. If your net worth isn’t growing in proportion to your earnings, it’s a sign that adjustments are needed in your spending, saving, or investing habits.

How to decide if you are not on the right Track

If you live for having it all, what you have is never enough

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Book Link

THE MILLIONAIRE NEXT DOOR SUMMARY (BY THOMAS STANLEY)

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Animated top 5 takeaways of The Millionaire Next Door by Thomas Stanley. Describes the characteristics of a millionaire. They might surprise you …

A playlist of books that will help you to reach your financial freedom goals faster: http://bit.ly/38Z6I0Y 

Top 5 takeaways:
0:00 Intro
0:17 The 12 Characteristics of a Millionaire
1:39 Play Defense
3:14 The True Cost of Consumption
5:27 Cash Gifts Are Bear Favors
6:51 How to Decide if You Are on The Right Track

TL/DW:
- Frist, becoming a millionaire is a result of hard work, lifestyle decisions, planning and self-discipline, not inheritance or luck. 
- The second takeaway is that you must play a great defense to accumulate wealth. 
- Takeaway number 3 is that opportunity costs, both in terms of money and of time, should be added to estimate the true cost of a purchase. 
- Number 4 is that cash gifts are counterproductive to accumulate wealth.
- Last but not least, number 5 is that you can decide if you are on the right track towards becoming a millionaire by taking your age, multiply it by yearly pretax income, divide it by 10 and then comparing it to your net worth.
My goal with this channel is to help you make more money and improve your personal finances. How to become a millionaire? There are many ways to get there – investing in the stock market, becoming a stock trader, doing real estate investing, or why not becoming an entrepreneur? But whether you are interested in how to invest in stocks or investing strategies for creating passive income with rental properties – I hope to be able to provide you with a solution (or at least an idea) here. Warren Buffett - the greatest investor of our time - says that you should fill your mind with competing ideas and then see what makes sense to you. This channel is about filling your mind with those ideas. And in the process – upgrading your money-making toolbox.

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Thank you for checking out The Swedish Investor. My name is Erik Abrahamsson, and on this channel, I will share with you the most successful strategies for taking your personal finances to the next level, in (well, hopefully) a simple and enjoyable way. Here, you will find time-tested investing advice from the most successful money managers and investors of our time.

About me:
-- Been investing in the stock market since 08/06/2013, and since then, I've beaten the S&P 500 by a fair margin
-- My CAGR on invested stock market capital is 19.5% as of July 2023 (after taxes and brokerage fees)
-- Read about 100 books on the topic of personal finance and investing

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I wish you all good fortune in your stock market investing!

Feel free to contact me on: theswedishinvestoryt@gmail.com