Researcher and author Thomas J. Stanley burst onto the scene with his fascinating book, 'The Millionaire Next Door.'
Based on his interviews with and surveys of over 1,000 self-made millionaires, the book delivers a number of pieces of solid advice for building wealth.
According to Business Insider, the first task is to learn how to save and live frugally. Only when you have those habits ingrained should you turn to investing.
Next, learn to base your investments on increased earnings. In other words, keep your lifestyle the same, and invest more and more of your remaining income.
Third, save and invest to be financially secure, which is quite doable. Don't do it to be rich and lead a lavish lifestyle, which is precarious and unlikely to succeed.
Multimillionaire W.W. Allan told Stanley that oftentimes, building wealth with the wrong motivations puts it out of reach.
If your goal is to become financially secure, you'll likely attain it. If your motive is to make money to spend money on the good life, you're never going to make it. W. W. Allan, multimillionaire
Finally, model your habits to your children so they can build wealth and financial security for themselves--not depend on you for it!
