Many millionaires live frugally

Not all millionaires have a lifestyle that indicates they are very wealthy. Some millionaires have become rich by working very hard and have never thrown the money away. Many millionaires appear to simply drive a middle class car that was even bought second hand. It is unrealistic to think that you can become a millionaire by living frugally. With a gross income of 30,000 per year you will never be able to become a millionaire. In any case, you must have a very generous income and you should not adjust your standard of living to the high income. Very few are lucky enough to become a millionaire by winning the top prize in a lottery, but they also have to be wise about it, millions are also easy to spend. You will not meet the average millionaire at the millionaires’ fair, but they are very reserved about their assets.

What is a millionaire?

Someone is literally a millionaire when they own one million of the currency in that country. Calculated this way, there are a lot of millionaires living in Indonesia. Their currency is the Rupiah. This is worth so little that an Indonesian is already a millionaire if he owns less than 100 euros. Internationally speaking, the dollar is used as the basis. You are a millionaire if you own at least one million dollars. In Europe this depends on the exchange rate of the euro against the dollar.

Millionaires in the Netherlands

In the Netherlands (and other European countries that use the euro) you are a millionaire with one million euros. Internationally, millionaires own an average of 2.5 million euros. You are a multi-millionaire if you own several millions. About 150,000 millionaires live in the Netherlands. However, according to other sources the number remains at 118,000.

Why live frugally as a millionaire

Money attracts people, and not always people with good intentions. By living in the shelter, they try not to attract too much attention and still enjoy their assets. For many millionaires it is also necessary not to spend too much money. For example, someone who has sold his business for one million at the age of 40 cannot subsequently throw money around. It’s a lot of money, but someone who has to live on it has to keep paying attention. By booking an expensive holiday every month, the money will earn money quickly. More than half of millionaires do not live in a villa. This also makes sense if you consider that a small villa in Bloemendaal is not affordable for millionaires. These types of houses are more likely to be reserved for multi-millionaires. They often appear to live in spacious, but simple houses.

When can you stop working?

One million euros is a lot of money, but you cannot live comfortably on that. This would of course be possible for people who are, for example, 55 years old and only have to work for ten years. According to the Quote, you need at least three million euros to be able to take it easy. People who live frugally and continue to live simply could go a long way with one million euros. It remains important to handle the money carefully. Investing in your own business is an option, but if the business fails you can also simply let the money evaporate.