Summary of The 5 Lessons A Millionaire Taught Me by Richard Paul Evans

 The 5 Lessons A Millionaire Taught Me by Richard Paul Evans can be used by anyone to build wealth or at least to avoid debt.   The first lesson is the most important lesson. That lesson is to decide to build wealth. This decision means that you will learn the rules to building wealth and follow them.

      The second lesson is to be responsible with your money.  You are responsible when you: (1) track how much money you earn, (2)  know the source of the income, (3) track where you are spending the money, know what your money is doing (e.g., is it earning a fair rate?)  You spend a lifetime earning money, you and your family deserve to know if it is being used well.

     The third lesson is to save a portion of all you earn. It is suggested to save and invest at least ten percent in assets.  Some people have debt and for those who do, it is suggested they use 10 percent of income to repay debt and ten percent to save and invest.

       The fourth lesson is to win in the margins.  Work a day job to cover all expenses and have medical insurance but also work a side job and invest all the money earned from the side job. Another way to win in the margins is to save money by getting the best price on large purchases. One way to do this is to ask, “Is this the best you can do?”  Also, ask yourself if each expenditure is necessary. Scale back spending. Find ways to enjoy life without spending money.  For each expenditure, ask if the expense is adding to your wealth or taking away from it.        

      Another mindset of millionaires is that freedom and power are better than momentary pleasure. Thus, think long-term.  Cars depreciate in value fast.  Thus,  for most people, it does not make financial sense to pay a lot for vehicles.

       Most successful people who have earned wealth know that spending does not equate to happiness.  Being grateful for what you have helps to prevent consuming as a strategy for seeking enjoyment.

       The millionaire mentality protects the nest egg. Once the nest egg starts to grow it will be tempting to spend it on something you could not afford before you saved the money. Millionaires resist this urge and let their money continue to grow.

    The fifth lesson is to give back.  No one leaves this earth with their money. We leave the wealth behind when we die. Thus, smart people give while they are still alive to enjoy seeing how their money works to help others.

   This is a practical book everyone can use to improve their financial life. It is highly recommended. 

 This book was purchased, not a gift.   

Thank you for reading this review. Comments are welcome.  We have not received anything from the author or publisher in exchange for this review.

Copyright @2022 by Christine Esser