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Kevin Henry was formerly the group editorial director for Advanstar Dental Media and has more than 15 years of experience in the dental publications field. You can follow him on Twitter (@kgh23).
Drs. Tom Stanley and William Danko, both of SUNY Albany, wrote a seminal study of American millionaire lifestyle and spending habits in 1996. The Millionaire Next Door has had several updates since.
Let’s look a several millionaire (those with net worth of over $1M) facts:
Two thirds of millionaires are self-employed. Typical businesses include contractors, farmers, pest controllers and paving contractors. Where are the doctors?
The average home value of a millionaire is currently $350,000. What? They didn’t make their money on their home?
Most will not receive an inheritance. The average amount millionaires save per year is 20% of net income. Most millionaires make their own financial decisions.
What is the highest amount millionaires have ever spent for a suit? Shoes? A watch?
Stanley and Danko differentiate between under “accumulators of wealth” and “prodigious accumulators of wealth.” Two-thirds of doctors are under accumulators of wealth.
What are the four main worries of under accumulators of wealth? One is “experiencing a significant reduction in income.”
In the video below, Dr. Doug Carlsen takes a close look at two doctors, both will high incomes of $700,000 a year. They both are in their 50s, are married and have several children. Dr. South is an under accumulator of wealth. He has saved $400,000 and his net income is going down. Dr. North is a prodigious accumulator of wealth. He, at the same age and income level of Dr. South, has saved $7.5M. We quickly find out the differences between the two doctors.
The next installment will describe “the aspirationals” and the “glittering rich.”