Everyday Millionaires | Chris Hogan

Summary of: Everyday Millionaires: How Ordinary People Built Extraordinary Wealth–And How You Can Too
By: Chris Hogan

Introduction

Welcome to the captivating journey of ‘Everyday Millionaires,’ where popular myths associated with financial success are debunked and replaced with solid strategies and practices. Going against the perception that only luck, inheritance, or high-paying jobs can lead to wealth, Chris Hogan reveals the real story behind financial success. Ordinary people can build extraordinary wealth with the right mindset, unshakeable belief, hard work, and the wisdom to make educated decisions. By analyzing the stories of real-life millionaires, this book summary highlights the relevance of taking a proactive approach to one’s financial welfare and helps readers unlock the potential for sustainable wealth and accomplishment.

Reviving the American Dream

Don’t fall for the myth that the American dream is dead. Believe in yourself and your ability to become a millionaire, regardless of your background. Learn from those who have succeeded before, and embrace pride in your financial achievements. Use setbacks as motivation to continue striving for success, and don’t let anyone tell you that reaching your dreams is impossible.

The idea that the American dream has perished and that the average person can no longer succeed is false. This belief only hinders people from pursuing their aspirations. Hogan, raised by a single parent in Kentucky, once believed that becoming a millionaire was an unattainable goal. However, he discovered that with an unwavering belief in oneself, the seemingly impossible could be achieved. Even when faced with doubters, the key to success is proving them wrong.

Take, for example, British distance runner Roger Bannister. In his time, running a mile in under four minutes was considered impossible, and even dangerous to a person’s health. However, Bannister defied the odds on May 6, 1954, when he clocked a mile at three minutes and 59 seconds. His accomplishment shattered preconceived notions and inspired others to achieve the same feat – even breaking Bannister’s record just six weeks later.

Becoming a millionaire follows a similar path. Recognize that others have achieved this status and that it is possible for you too. In fact, CNBC Money reported in 2017 that there were nearly eleven million millionaires in America.

Once you join the ranks of millionaires, don’t feel ashamed. These individuals know that their financial success stems from hard work and dedication, and they take pride in their achievements. As Hogan’s study reveals, millionaires see winning as a positive outcome, not something to be embarrassed about. They may not win in every endeavor, but they don’t let setbacks deter them – instead, these obstacles fuel their drive to achieve the next big win.

Let’s dispel myths about millionaires and explore their qualities so that we can be inspired to chase our dreams and revive the American dream.

Millionaires: More Grit Than Luck

Most millionaires neither inherit wealth nor attain it through pure luck. A common key to their success is hard work, sacrifice, and perseverance. Understanding this and believing that opportunities are available for everyone is essential to achieving one’s own financial goals.

Who hasn’t heard the phrase, “I bet that guy’s never done a day of work in his life” when referring to a wealthy person? The assumption often made is that the rich were either born lucky or with a silver spoon in their mouths. However, the reality is that the vast majority of millionaires don’t inherit their fortunes.

Case in point: 79% of the millionaires interviewed by the author received no inheritance at all. Their wealth was built on hard work, sacrifice, and adherence to a plan. Take Thomas, a man who grew up in poverty surrounded by alcoholism and decided he wanted to break free from it. He obtained his PhD, spent 37 years teaching math, and retired with a net worth of $2.6 million. Thomas saved diligently through frugality, avoiding debt, and making smart investments.

Success stories aren’t limited to just the financial realm. Even Michael Phelps, the most decorated Olympian in history, didn’t achieve glory solely due to good genes or luck. At his peak, Phelps trained intensely for six hours every day except one, swimming nearly 50 miles weekly and lifting weights. All the genetic factors wouldn’t mean much without the hard work to accompany them.

Similarly, millionaires often rely on more than sheer fortune to achieve their wealth. It is a mistake to assume that millionaires’ successes are purely predicated on luck, as such beliefs can hinder one’s own aspirations. The truth is that there are ample opportunities available for anyone, regardless of luck or inheritance. The crucial determinant is the belief in one’s potential to succeed.

Every single millionaire we’ve encountered knows that opportunities exist for them, and they have the wisdom to take advantage of the right ones. This understanding is significant in striving for financial success, and acknowledging the role of diligence and perseverance is critical for those who wish to join the ranks of the wealthy.

Debunking Millionaire Myths

Contrary to popular belief, millionaires rarely accumulate their wealth through high-risk investments, such as single stocks or cryptocurrencies, nor do they achieve great fortunes through get-rich-quick schemes. Instead, they steadily build their wealth by opting for balanced and diversified investment opportunities. A staggering 79% of millionaires have credited employer-sponsored retirement plans, primarily investing in growth stock mutual funds, for their financial success. These individuals focus on long-term growth and reliable methods, with the majority of them reaching the million-dollar mark around the age of 49. The enduring allure of quick wealth may be tempting but it distracts people from employing proven wealth creation strategies.

Debunking Millionaire Myths

Contrary to popular belief, joining the millionaire club does not require prestigious education or high-status jobs. Most millionaires attended public state schools and prioritized staying debt-free during their college years. Typically, they hold ordinary jobs and focus on diligent saving and investing behavior, rather than seeking high salaries.

A common assumption is that becoming a millionaire necessitates an elite education and a high-powered job. While it is true that a majority of millionaires have a college education (88 percent possess a bachelor’s degree, as opposed to only 33 percent of the general population), brand-name colleges are not a requirement. Surprisingly, 62 percent of millionaires graduated from public state schools.

The value of a college education is undeniable – those with bachelor’s degrees earn an impressive 74 percent more over their lifetime than high school graduates, as per Georgetown University. However, the cost of attending private institutions, which averages $45,370 per year according to CNN Money, is not essential to achieving millionaire status. It’s worth noting that public state schools cost around $20,090 per year – less than half the price of private education.

Clearing oneself of debt during college years is crucial for future millionaires. A staggering 68 percent never took out a single penny in student loans, in contrast to 49 percent of the general population. This approach allowed them to begin saving and investing early in their careers, avoiding the pitfall of student loans that can cripple one’s ability to build wealth.

Another myth surrounding millionaires is their need for high-paying jobs. However, 30 percent of millionaires have never had a household income of six figures per year. Only a third earned an average of $100,000 per year. Their top three professions include engineer, accountant, and teacher. Thus, millionaires tend to be ordinary individuals with standard jobs, setting themselves apart via disciplined financial behavior and dedication to staying debt-free.

Owning Your Financial Destiny

The crisis of responsibility in the US today is evident in financial management, particularly when it comes to retirement savings. A majority of Americans are concerned about retirement, yet few are taking steps to prepare for it. Millionaires, on the other hand, recognize that they are solely responsible for their financial destiny. To begin taking control of one’s finances, it is necessary to first calculate one’s net worth, which facilitates understanding one’s current position. Following this, it is crucial to envision one’s desired retirement, determine the financial requirements to achieve it, and start saving and investing today.

The United States seems to be battling an often-overlooked crisis of responsibility, particularly in financial management. A striking example is the lack of preparation for retirement among many Americans. Despite 56 percent of individuals expressing worry about their future retirement, a vast majority are not actively taking steps to accumulate savings. This lack of responsibility stands in stark contrast to the mindset of millionaires, who understand that they must be accountable for their own financial success.

To emulate millionaires and achieve financial growth, individuals must first calculate their net worth by subtracting their debts from the value of everything they own. This step is essential in understanding one’s current financial situation. Using online resources such as a net worth calculator can help simplify this process.

After gaining clarity on one’s present financial standing, it is necessary to develop a clear vision of one’s preferred retirement lifestyle. This includes discussing expectations with a spouse, if applicable. By identifying factors like desired living location and the type of car one hopes to drive, individuals can create a vivid picture of their retirement goals.

Lastly, individuals must determine the specific amount of money needed to fulfill their vision and calculate the monthly savings required to reach their target. Embarking on this journey of financial growth and retirement preparation is solely the individual’s responsibility, and it is crucial to take action starting today.

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