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2. The middle class live above their means, the rich live below
“There is no dignity quite so impressive, and no one independence quite so important, as living within your means.”
-Calvin Coolidge
You won’t catch the average millionaire in a $100,000 car or a multi-million dollar home. The rich don’t spend their money on depreciating liabilities, they spend their money on appreciating assets and they live below their means. On average, the rich drive cars that are a few years old and they don’t buy them new, according to studies done in the book “The Millionaire Next Door.” Even if they can “afford” that fancy new Escalade, they usually don’t buy it.
Remember, if you earn $1,000,000/year and you spend $1,000,000/year, you’re still broke.
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