Wealth and income are worlds apart!
Amassing wealth is more dependant on your spending habits and lifestyle than on the amount of your paycheck. That is not an opinion, it is the result of an extensive study by two PhD's.

Thomas J. Stanley and William D. Danko wrote the book. It is a 258-page volume called "The Millionaire Next Door." The publisher is Longstreet Press. The authors define wealth as anyone with a net worth of $1-million. About 3.5-million of the nation's 100-million households qualify as wealthy. Some 80 percent of them made it on their own, in a single generation.

Did You Know?
Most millionaires are self-made; they amass the fortune in one generation. They are often motivated to succeed financially because their parents withheld financial assistance from them as adults. The wealthy get that way mostly by being frugal.

The Wealthy Generally Do Not Stand Out.
Two people with the same income can be worlds apart; One could be two paychecks from losing the home, and the other could be financially independent enough to live for years without another cent of outside income. The satisfying sense of independence seems to set the millionaire apart; it has much to do with lifestyle.

The outward trappings of wealth mean little. They drive secondhand General Motors cars, not expensive status cars. They buy $200 to $300 suits off the rack (probably on sale), not the custom made versions chosen by their cash poor neighbors. They tell time with a simple watch costing less than $100, again avoiding the expense of status.

The next-door acquaintance, driving a new BMW and wearing a $1,000 suit, scarcely pays attention to the frugal neighbor -- and that is fine with the wealthy.

Many wealthy people handle their money so discreetly that their own children may learn about the parents' wealth only after their deaths.

Most Wealthy People Own(ed) their Own Business.
Others amass their wealth from salaries, salting away 20 percent and more of their income. The authors write that the important rule is simple: To build wealth, reduce realized (taxable) income and maximize unrealized income (wealth and capital appreciation that does not involve cash flow).

Some Interesting Characteristics of the Wealthy.
Wealthy people tend to raise children who become wealthy on their own. They insist that the children make their own way. They never remind their children that they are wealthy and well off.

The wealthy are downright stingy in many ways, but in some ways they are very generous. They generally lavish money on quality education for their children and grandchildren. Education is another kind of investment!

They also spend freely on services they think will make them wealthier and healthier. The wealthy get topnotch medical care and estate planning advice. They also invest in accountants and lawyers who specialize in guarding wealth.

In summary . . .
Most millionaires are self-made and they achieve that goal by being frugal. Some interesting considerations: