George Kamel, a personal finance expert and self-made millionaire, recently shared eight surprising things that millionaires do. Despite misconceptions about flashy lifestyles, many millionaires prioritize frugality, hard work, and risk management. Millionaires often own assets that appreciate in value, such as real estate.
They typically pay off their mortgages faster, with an average payoff time of 10.2 years, resulting in substantial interest savings. When it comes to vehicles, it’s more common to find a millionaire driving a reliable used car, like a Ford or Honda, than a luxury brand. The average millionaire drives a four-year-old car with 41,000 miles on it, and eight out of 10 millionaire car buyers avoid car payments altogether.
Kamel explained that millionaires often have a lower monthly clothing budget than the average American and even use coupons occasionally. They prioritize having an emergency fund to protect themselves from risks like large, unexpected expenses.
How millionaires save and invest
Many millionaires save 16% or more each month, and Kamel recommended having at least three to six months of monthly expenses in a high-yield savings account. Wealthy people don’t just spend willy-nilly; they give every dollar a job and use their financial margin to build wealth instead of building other people’s wealth,” Kamel said. Budgeting is crucial regardless of wealth level, and millionaires understand the power of compound growth.
Kamel advised investing 15% of earnings, potentially increasing this percentage after paying off a mortgage. According to Kamel, millionaires avoid permanent life insurance due to its high costs and potential loss of benefits if premiums are not maintained. He suggested term life insurance as a more cost-effective alternative that allows individuals to invest the savings to build more wealth.
Kamel also emphasized the importance of having a will, as a survey found that 76% of Americans didn’t have wills, risking their assets being distributed by the government after their death. Understanding these practices can provide valuable insights into how millionaires build and maintain their wealth through frugality, intentionality, and smart financial decisions.
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