For this month, I want to highlight the insights of my colleague, and good friend Adam Smit, who wrote an excellent article in the past on a great read “The Millionaire Next Door” by Thomas J. Stanley and William D. Danko. The book offers a deep dive into the habits and behaviors of wealthy individuals, revealing surprising truths about how they build and maintain their wealth. One lesson, in particular, stands out to me—frugality as the foundation of wealth. Many people assume that millionaires lead lavish lifestyles filled with luxury cars, designer brands, and extravagant homes. However, The Millionaire Next Door reveals a very different reality: most self-made millionaires achieve their success not through excessive spending but by living below their means, prioritizing savings, and making disciplined financial choices.

They opt for reliable, used cars instead of expensive leases, live in modest homes, and avoid unnecessary luxury purchases that don’t contribute to their long-term financial goals. Frugality isn’t about being cheap—it’s about spending wisely and focusing on value over status. Wealthy individuals understand that financial freedom comes from consistently spending less than they earn and investing the difference. This disciplined approach allows them to grow their wealth over time, regardless of their income level. By avoiding lifestyle inflation, making smart financial decisions, and prioritizing savings and investments, they ensure that their money works for them rather than the other way around. The lesson is clear: wealth isn’t about how much you make—it’s about how much you keep. Anyone can apply these principles to build long-term financial confidence and pursue financial independence.

Jack Syryczuk is a registered financial advisor with LPL Financial. The information in the article is for general education and informational purposes. Jack can be reached by contacting Adam Smit Investment Management at 715-644-3434 or online at www.adamsmitim.com. Securities and advisory services offered through LPL Financial, a registered investment advisor. Member FINRA/SIPC.

This is a hypothetical example and is not representative of any specific investment. Your results may vary. All investing involves risk including loss of principal. No strategy assures success or protects against loss.