The author of "The Millionaire Next Door" discovered that wealthy people do not wear expensive clothes, do not wear expensive shoes and do not own any latest phone.

Why are there not many people being a “real millionaire”? Even if a person is having a 6 figure annual income, he or she may not be rich person. Why do I say so? Nowadays, credit card has become a trend and necessity to most people. These people love to spend money and they don’t mind to have debt in order to have a luxury lifestyle. They look down at people who are not having luxury lifestyle. They may never never know those people who they look down are wealthier than themselves.

We can compare the game of money as a soccer game. You might have good players that can launch vigorous attack, and having a game scored with 5 to 6 goals. Undeniable, you have a great team to attack the opponent. But why do your team still lose? Is the defense too weak and hence providing many chances for your opponent to score? Same goes with wealth management. If you spend more than you earn monthly, then how can you accumulate wealth?

You might be curious, if a person is rich, why does he need to budget and control his expenditures? Have you ever observe people jogging in the park daily? Most of them look healthy. Why do they need exercise if they are healthy? The reason they are healthy is exercise!

Millionaires follow their budget and control their spending. In contrary, ordinary people do not have budget nor control their spending, thus they will always be just an ordinary person.