In a survey of 1284 households that have a net worth of at least $2.5 million, 1232 of the households indicate that their annual spending is less than the income generated by their private business holdings, stock dividends, partnership distributions, and rental income. Given that, at a minimum, this implies passive cash flows of at least $12,000 per month, it may not sound surprising to you that these families can make it work.
But what I find interesting are the reflections from these wealthy individuals about their habits on their journey from a point at which their financial resources were modest to the point that they had accumulated something substantial.
And, in this case, 1063 of the households that spend less than their annual passive income state that they left their investment holdings alone while they were getting rich, and also lived on much less than their annual salary. This … Read the rest of this article!
The post Multimillionaires Spend Way Less Than Their Passive Income first appeared on The Conservative Income Investor.