George Kamel - What Secret Millionaires Don't Tell You

Episode Date: March 28, 2024

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What if everything you've thought about millionaires is wrong? What they do, what they make, what they spend, what they drive, even what they wear? Well, my answer to this question stoked a little bit of fire on the World Wide Web earlier this year, and guess what? Sorry not sorry. Oh, snap! And today I'm going to uncover the truth that no one is telling you about what it really means to be a millionaire. Some of you will hate it, and you'll let me know in the comments, and some of you will love it, and you probably won't leave a comment. But I promise you this, it will make you think differently the next time a shiny beamer pulls up beside you at a stoplight.

But first, a quick thank you to the 180,000 subscribers to my channel. You guys are the wind beneath my wings and you keep me going. Hey, who left this bowl of onions here? And you can help us get to 200,000 by clicking the like, share, and subscribe buttons. So be the subscriber change you want to see in the YouTube world. So without further ado, here's the clip that started this whole mess when I was talking with my friends, the minimalists. We studied, they drive four-year-old cars and the top brands were Toyota and Honda. And you're going, oh, I thought millionaires are driving like Lamborghinis and Lexuses and Mercedes.

No, millionaires, the guy at the stoplight next to you driving the nice car is probably broke. And the guy driving the crappy car with the bumper hanging off probably has more money in his bank account than you'll ever see. And so we have to reframe what wealth looks like and it's not always visible to the naked high. And that's a weird thing to think about. Like the farmer out there with the mud on his boots has a $3 million net worth. And the guy with the fancy suit driving the luxury car could have payments up to his eyeballs and a marriage falling apart. I got to say, a lot of wisdom there. Punchable face.

But I like what the guy had to say. You see, a lot of folks have this image in their head of what a millionaire looks like. They drive a Matt Black G-Wagon. They wear designer undies for some reason. And they eat at Michelin-Star restaurants on any given Tuesday. Does it sound nice? Yes. Am I willing to spend $140 on Burberry briefs?

No. Would I accept them as a gift if they were unworned and still in the packaging? Sure. Try me. That's just a little weird. So allow me to do the honors of bursting your wealth bubble here. Most millionaires look less like the James Bond in your imagination and more like your unassuming neighbor Jimbo next door.

And to prove it, Ramsey Solutions Research conducted the largest study of millionaires ever done. And we called it the National Study of Millionaires. We're really good at naming things. Truly, you have a dizzying intellect. And in this study, they talked to more than 10,000 millionaires to get a clear picture of what a real millionaire looks like and what it takes to reach a seven-figure net worth.

And here's some fun facts that they found. Millionaires spend an average of $117 per month on close. Meanwhile, the average American household spends $146 each month on close. Here's another one. Millionaires spend less than $200 each month at restaurants. Again, way less than the median American household, which spends about $265 eating out each month. And want to guess what kind of cars most millionaires drove?

I'll give you a hint. They rhyme with Ronda and Royota. And get this, millionaires have normal paying jobs. Seven out of 10 millionaires that we studied did not average $100,000 or more in household income per year. And a third never had a six-figure household income in their entire working careers. So why am I sharing this with you?

Other than as my formal statement regarding the comment section trolls who blasted me from my aforementioned video, Because we need to reframe how we think about millionaire status. You see, when most people hear the term millionaire, they're accidentally imagining billionaires, Lambos, overwater bungalows, roleys, which I once thought was the generic brand of Helies, but I now know is a Rolex watch.

But clearly, the data is telling us that millionaires actually spend less than the general population while making roughly the same. And I want you to think differently about wealth, because here's the kicker. It's actually a good thing for you that millionaires aren't out. out there living their own version of VH1's The Fabulous Life of Your Neighbor Jim.

And I'll tell you why it's a good thing right after a word from our sponsor. So the internet is great and all, but there are some things I don't appreciate about it. Irrelevant pop-up ads for vegetable spiralizers, the rebrand of Twitter, my cousin oversharing on Facebook, and, of course, cyber thieves. I mean, all it takes is one wayward click on a bad link and suddenly some data broker has got your info. And that's why I use Delete Me. They found and removed data about me from a whole bunch of sites, and they can have

help you too. With my special code, DeleteMe will give you a one-year plan that costs less than nine bucks a month to help protect you from the risks of online scams and identity theft. So if you want the deal, go to join Deleteme.com slash George. That's join deleteme.com slash George. All right, back to millionaire stuff. I mean, think about it. It should be good news that most millionaires are just regular people who simply make good decisions with their money. Because that means it's not about how much you make, who your parents are, or the Acapella group that you were in at Cornell. I went to Cornell. You ever heard of it?

It's about what you do with what you have that really matters. So what do millionaires do with their money? And what should you do if you want to end up like them one day? Well, again, according to the Ramsey's study of millionaires, here's their wild secrets. First up, millionaires realize that instant gratification and impulsive trips to Cabo are fun, but delayed gratification is so much better.

So they sacrifice temporary pleasures and swim up sushi bars for long-term success. They've no problem buying a used Honda, living in a modest neighborhood and shopping at TJ Max, which all my Maxinistas know is hardly a sacrifice. Woo! I've been here for hours. So next time you're tempted to throw money into a pit in your backyard, fill it with water, and call it a custom pool,

try doing less Instagramable but more important things, like saving up for retirement or saving up cash to buy your next Royota. The next secret combats one of the biggest myths out there, other than the total lie that toilet water flushes the opposite direction in Australia. And here it is. millionaires use debt as a tool. That's simply not true. If millionaires want something they can't afford, they save and pay cash for it later, like someone you know who actually has money. In fact, 75% of millionaires have never carried a credit card balance in their lives. That's right. Credit, car payment,

student loans, same as cash financing plans, moist, seepage, beefy. These words, for obvious reasons, just aren't part of their vocabulary. Because most millionaires don't want to owe anyone anything. They know that debt is a thief stealing from their income. They're getting rid of debt, not accumulating it. I mean, the average millionaire pays off their house in just 10.2 years. They're not hanging on to debt for fun. So listen, if you want to live like a millionaire, you need to understand that debt is not a tool for building wealth.

It's not a great way to get things you want faster, and it's not something that you can't live without. Now, the last secret of the low-key millionaire is that they're not betting big on single stocks, investing in crypto, or getting in on the ground floor of Jimbo's exciting new investment opportunity. In other words, they're not betting on big risks to get rich quick. Instead, eight out of 10 millionaires said the number one contributing factor to their high net worth was consistently investing in their retirement plan.

Ye old, tried and true 401k and IRA. And listen, I've done the math countless times on this channel. If you invest 15% of your gross household income into tax advantage retirement accounts over 25, 30, or 40 years, you will become a millionaire. No ifs, ands, or butts about it. No cuts, no butts, no coconuts. But the key is remembering that it's going to take time. In fact, the average millionaire hits the $1 million mark at 49 years old

after decades of working, saving, and investing. If you were thinking that you would just ride the next doge coin to the moon or win Survivor Season 46, think again. And guys, think about it. If 46 people have survived at this point, is it really that special? It's actually a good point. You see, building wealth like a millionaire is more like cooking with a crock pot than a microwave. It's going to take more time.

but the end result is way better, way less radioactive, and a good bit juicier. But listen, even though hitting that million dollar benchmark would be incredible, a lot of people are wondering if it's even enough these days to make it through retirement. And I got to say, I can see where they're coming from. With inflation, the rising cost of health care, the lack of security and social security, not to mention the price of an hour at the bowling alley these days, your financial future can seem pretty dicey. And lucky for you, I did the hard work and made a video all about whether or not a million dollars is enough to retire on.

So check out this video or click the link in the description to watch it up next. In the meantime, comment below whether your team Rhonda or team Royota or the less popular, team Revrelay. As always, thanks for watching. We'll see you next time.