Few people approach their finances with a sound plan. Laying the foundation for financial independence is critical if you want to achieve success.  For those who want to accumulate wealth and enjoy the economic freedom that comes with financial security, it is important to develop a plan of attack  Years ago I learned that many people make the mistake of not approaching this endeavor with a goal and a plan. A lot of people set before them the goal of becoming rich but forget a goal without a plan to achieve it and taking action is just a wish.

One of the best ways to gather ideas that will move you forward is to read and what you read is important. I was moving around some books the other day and opened a book by the name of “The Millionaire Mind”. The author Thomas Stanley also wrote the book  “The Millionaire Next Door” which was a best-seller a few years back. The people he studies are financially secure. This book takes a deeper look into how these people think and make their money. It slashes through the false images of wealth often portrayed by mainstream media of private jets and homes on remote islands and deals with the real world.

Unfortunately, it would be disingenuous not to mention that a major stumbling block to becoming rich today is the force of inequality washing over the world. When I look back at what many older Americans have accomplished over the years a strong argument could be made that their feats would be far more difficult to pull off in the economic environment we have today. Also, we should note that the term "millionaire" used to be thrown around as the definition of the "wealthy" in the United States, but that line is or has since been redrawn. According to Charles Schwab’s annual Modern Wealth Survey which sampled 1,000 Americans between the ages of 21 and 75. it appears many people now feel that in order to be "rich", they need to be worth an average of $2.3 million.
 

This amount is more than 20 times the actual median net worth of U.S. households, according to Bloomberg, and down from $2.4 million that was arrived at during the previous two surveys. It seems the older someone gets, the higher their bar goes for what they consider as "wealthy". Baby boomers now claim a person needs have $2.6 million to be "wealthy", which is 35% higher than what millennials think. as for being considered "financially comfortable" the threshold falls significantly. The average amount needed to be "comfortable" was $1.1 million, and those in Gen Z believed that under a million ($909,600) was acceptable.

Many millennials, those roughly age 22 to 37, are now at the point in life where the "fickle" topic of wealth, what it is, how much you need, and such has become very important to them. Interestingly more than 75% of this group surveyed indicated their personal definition of wealth was "really about the way they live their lives, rather than a discrete dollar amount." Another sentiment they voiced was their desire to own real estate. Unfortunately, it is difficult to reconcile the fact that 60% of the millennials say they believe they will be wealthy "within 1 to 10 years" considering that 59% of those surveyed said they still live paycheck to paycheck.
 

Sadly, the views many people hold as to how they can become wealthy are very unrealistic. The average person's dream they will ever become is often a "vision of grandeur" and nothing more. Today, many people admit to falling under the influence of overspending on things they stumble across on social media. Even with the current economic growth and low unemployment, society must square the fact the largest U.S. banks are now seeing losses on credit cards that outpace those of auto and home loans at a rate not seen in at least ten years while credit card interest rates sit at all time highs.

Circling back to the book, “The Millionaire Next Door.” far from what many of us might think after a great deal of study and research Stanley found the huge majority of millionaires are a real down to earth people. In his book, Stanley looks at where these people live, their favorite leisure activities, and the different factors that make them wealthy. Somewhat obscure and not just off the press this book is an excellent read and a manual for those of us wanting to get ahead. While it is not full of razzle-dazzle get rich quick schemes it is packed with a realistic view of how people build wealth and how they don't.
While the world is full of hype and false images, in his book, Thomas Stanley reminds us how people really become wealthy. He also advises us to remember that you can’t judge a book by its cover and that the fella you see mowing his yard or sitting next to you as you fly in coach may be a multi-millionaire. The book is about making and saving money the old fashion way, not through winning a lottery. Accumulating wealth does not mean a person is greedy but often a reflection of hard work, planning, and being responsible. The picture painted in Stanley's book is a far more realistic look at the rich and wealthy in America than the hyped and unhealthy fixation the media has which is often focused on billionaires.