Cutting Costs Will Make You Broke
This is one of the simplest truths and yet almost no one understands or implements this way of doing business. Let me explain.
It was probably over a decade ago now I read a book called The Millionaire Next Door. At the time I just loved that book and in fact I ended up buying many copies and giving it out to a lot of business associates.
The book was a study of who the millionaires were in North America and the lifestyles they led. In was an exhaustive study and I think for most people it was surprise about how millionaires really lived.
The book pointed out the fact that many peoples vision of a millionaire was a person who shopped on Rodeo Drive, lived in a posh neighborhoods and drove several luxury cars. Well it turns out that is only about a third of the millionaires. The other two thirds are more likely to live in a middle class neighborhood, drive a 2 to 4 year old domestic sedan, if not their work truck and shop at Wal-Mart.
Now to be fair to the author he was really just reporting the facts and not suggesting that this is the way you should live but I unfortunately used its information and lived that way for a couple of years and it was the worst years of my life.
The book showed that 2 out of 3 millionaires were usually hardworking business owners that lived modestly scrimping and saving to accumulate their millionaire status. I bought into that crazy reality so deeply I even drove one of the company trucks for a couple of years.
I think at that time even Robert Koyasaki of Rich Dad Poor Dad fame recommended in one of his first books that you should buy a two or three year old car so someone else can pay the biggest portion of the depreciation. I don’t think he still writes about these methods but frugalness was the message back then.
Now there is no right or wrong way to live in this regard and happiness is most definitely an inside job. I also think you must be a good steward with your money but that being said it was just a plain and simple miserable way to live for both me and my family that I had to apologize for later.
Why the apology? Because living that way is just not necessary and does not really help anyone. I remember driving through a downtown street one day on the way to one of my fire and flood business locations and the truck was starting to overheat a little.
I think it was at that point that for some reason I woke up from my nightmare and have become a little bit more awake each and every day since. Why was I driving a company truck that obviously needed some attention rather than a luxury sedan that I would truly prefer?
Of course you play the game with yourself that I don’t need that expensive sedan it is jus a waste of money. I really don’t know if I believed my own Bull Shit back then or if that is what I truly thought. What was it in me that thought I did not deserve that luxury car?
Had I lost that much faith in myself that I thought I could not afford a nice new car and to truly do what I want and when I want to do it? Well it was obvious by my actions that I was focusing on the wrong things. I was focusing on lack and certainly not prosperity and abundance.
An acquaintance of mine is a good example of what I am talking about here. He is a business owner in a home service business and he will go to great lengths to save money on anything he buys. He and his son will spend weeks looking for a certain type of used car in the $2,000.00 price range. He will also spend precious time telling you the story about how he beat down the owner on the price and saved a ton of money.
Bottom line is this. He is still driving a piece of crap car that if you even consider a wage of $10.00 per hour in time spent looking for and then telling about the purchase probably cost him triple that. It has not created any new jobs by buying a used car and I don’t think he is putting his best face forward as a business man.
If this fellow had put the same amount of time into focusing on building his business he would no doubt be way further ahead.. You just are of no help to anyone and especially your kids when you play small. We are an expanding prosperous abundant universe.
Focus on prosperity not lack because you will help more people and set a better example. The more you focus on lack the more you are heading in the wrong direction. Dare I say that The Millionaire Next Store looking back was both good and bad? It woke me up to how I don’t want to live and it spurred me on to how I do want to live.
Whether you are aware of it or not your mind is focusing on something and it might as well be wealth, health and prosperity because What You Focus On Grows.
Posted in Pricing, Create Wealth, What You Focus On Grows, Budget Free Zone










I disagree. I feel that you run a high risk that people reading your article will take this as an excuse to go buy a luxury car instead of something appropriate for their income.
Many middle income earners stay that way for life because they lack the discipline to focus on wealth/abundance as you suggest WHILE staying frugal. It isn’t a failure to avoid spending money unwisely. Do you really need that V6? Wouldn’t want to suffer without power seats. My god, now wonder most people live off credit for their entire lives.
You’ll notice that the 2/3s of millionaires are STILL driving those average cars when they are millionaires… you know why? Because they realize that they just don’t NEED more than a safe, clean car to live. I’ll bet that instead their money is giving them what matters in life:
Freedom to travel, own cottages away from their residence, live for things of value to them… perhaps showing off wealth in an overkill vehicle turns some peoples crank I suppose.
Staying as invested capital, providing them the next 20 years of security from the returns on those investments.
And so on…
Cheers, Dylan
Said by Dylan March 24, 2008 at about 5:04 pm