4 Defense Strategies to Becoming A Millionaire

What type of mindset do you have to have in order to become a millionaire? First off, let me say that I am a firm believer that in order to reach a goal you must first be the specific person, that takes the actions, that reach that goal. Be, do, have! I'm also a firm believer that one is much better off learning proper money management techniques.

Defensive Money Strategies from Real Millionaires

1. House Purchases. Real Millionaires do not get houses custom built, nor do they move into new developments. They live in clusters with each other in OLD neighborhoods, in OLD houses. Most are 15 years old and they often triple in price since their purchases.

2. Clothing Purchases. They aren't going to buy really expensive clothes. They may frequent thrift shops or even Walmart to get their clothes. So don't be embarrassed to go cheap, just think of it as acting like a millionaire. They will buy really expensive shoes, and resole them when necessary. Since they'll wear them for a couple of decades the cost per wear will be marginal compared to constantly replacing a cheap pair.

3. Furniture Purchases. Real millionaires do not buy the latest styled furniture. They'll go out and buy a $10,000 antique table made from REAL wood, not modern saw dust. They'll repair and refinish this table when needed. They can keep it for a lifetime, pass it on to their children, and not worry about upgrading to the latest. Guess what? Antiques raise in value, so their net worth doesn't take a hit at all! As far as other furniture goes, they re-upholster it a couple of times in their life time, which is way cheaper than buying new again.

4. Vehicle Purchases. Real millionaires will not buy the latest car while it's still sitting on the lot. They'll keep their cars well maintained for many years, and when it comes to make a new purchase they'll find a used car that is in good condition. This way they can avoid that initial depreciation that comes with driving a brand new car off the lot.

First Cost Vs. Life Cycle Cost Defense Strategy

This applies to the amount of money that can be saved when purchasing an item, versus how much fixing and replacing this item will cost over a life time. The furniture purchases and shoe purchases I mention above are pretty good examples, but it can apply to many other situations as well.

A good example that Dr. Stanley used was in the case of paying a plumber to do some work for you. You might be able to buy a cheaper boiler, install it yourself, and save a few hundred dollars. However, you aren't thinking about the big picture.


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