The Five Lessons A Millionaire Taught Me About Life and Wealth: Book Notes

Lesson 1: Decide to Be Wealthy

  • For the most part, whether to be wealthy or not is your choice.
  • Most people never decide to be wealthy…and never become wealthy.
  • Choice is the beginning of all journeys.

Lesson 2: Take Responsibility for Your Money

  • Know how much you have
  • Where it is coming from
  • Where it is going
  • What it is doing in the meantime

Lesson 3: Keep a Portion of Everything You Earn

  • Pay yourself first!
  • Save a minimum of 10% or your ongoing salary and 90-100% of your side earnings.
  • Take advantage of the power of compound interest.
  • Don’t dip into the nest egg as it grows.

Lesson 4: Win in the Margins

  • Two ways to win in the margins:

1 – Earn extra income. Look for ways to make extra income and you will find there are opportunities all around you.
2 – Keep more of what you make

  • Four key mindsets that characterize the wealth builder:

1. The millionaire mentality carefully consider each expenditure

  • Is it really necessary, or is it possible to get the same effect without using money or using less of it
  • Is this expenditure contributing to my wealth or taking from it?
  • Is this an impulse purchase or a planned purchase?

2. The millionaire mentality believes that freedom and power are better than momentary pleasure.

  • Understand the danger of debt.
  • Delay gratification.
  • Never borrow money.

3. The millionaire mentality does not equate spending with happiness.

  • Equating spending with happiness is the first step toward self-destruction.

4. The millionaire mentality protects his nest egg.

  • Careful investing rather than gambling

Lesson 5: Give Back

  • Ultimately, the most enjoyable use of money is helping others.
  • Giving will warm and expand your life. Hoarding money will make you cold.
  • We get back when we give.
  • Life is not about money. It is about God, love, family, and relationships.

“Live so that even the undertaker mourns your passing.” – Mark Twain