<prompt> Human: Most millionaires dont just life the high life. They budget wisely to maintain their affluence and net worth. If they get a raise they do not automatically increase their standard of living in proportion to their salary. Instead, they learn to invest the additional money so that they can retire earlier. The majority of self-made millionaires have modest backgrounds and become rich by saving their monthly earnings and avoiding spending money on things they dont really need. I work in technology and its surprising how rare it is to find someone who budgets judiciously and plan for their retirement. Most of my colleagues dont even contribute to either 401k or Roth IRA EVEN WHEN THE COMPANY IS OFFERING A 5 MATCH. Others only contribute up to 5 because they have to pay off their expensive car or are saving up to buy that 65 LED TV. A lot of them have never heard of Mint or YNAB or Vanguard. Wealthy people believe that financial independence is more important than flashy social status. Being financially independent plays a significant role in your well being. Of those in the same income bracket, people who are financially independent are happier than those who arent. However, what does it mean to be financially independent? It essentially boils down to the fact that you are able to continue the same lifestyle you currently maintain now when you retire. Also, you have made accommodations for any financial crisis in the future. Financially secure people are clear about their future goals, and that enables them to organize their household expenses according to personal priorities. You can have a high income, live in a big house, drive luxurious cars and wear designer clothes. Yet, it is a terrible indicator of your actual wealth. Most millionaires dont have as much money as youd expect. To calculate the expected wealth of a person: take the persons age and multiply it by the pre-tax annual household income, followed by dividing the result by 10. For example, Joe earned 250,000 last year. He is 50 years old. His expected wealth will be 50 multiplied by 250,000, then divided by 10. which equals to 1,250,000But, by squandering his cash on luxury goods, Joes actual net worth is less than 260,000 Hes no millionaire but an under accumulator of wealth. As a result, he is not worth as much as he could be. A friend of mine bought a 60,000 car and he was bragging how people come up to him to talk about his car whenever he goes to parties. Currently, he is contributing 0 to retirement or investment of any kind. Millionaires are aware of where their cash is going and spend a considerable amount of time planning their investment. Surveys have repeatedly shown that for every 100 millionaires who werent budgeting and planning their financial future, there were 120 millionaires who certainly were. Planning and restructuring expenses is the key if you want to retire early. Set a goal, such as having a specific amount of cash put away for retirement. Then, budget your expenses, living costs and investments. On one hand they are frugal, but they do not cut on important expenses like healthcare for their loved ones, house and car insurance and tax advisers. Likewise, they know to buy products and services that vastly improve their businesses additional office space or software and quality of life gym memberships, gardening, groceries. Contrary to popular belief or the stories covered in news, most wealthy people are thrifty and mindful of their spending. On the other hand, I have seen so many of my colleagues who just got out of college and ended up buying a 40,000 car as soon as they landed their first job. They didnt even give too much consideration to miscellaneous expenses like costly insurance, higher gas costs since their cars require the more expensive grade gas, maintenance, registration fees, etc. They have never heard of discount stores like DDs, BigLots, Ross or TJ MaxMarshalls. Conclusion:Overall, this is a good book but it is aimed towards people who are new to FI rather than this subreddit. It could have been a lot shorter as it tends to repeat the same points in different chapters. So, if you are still planning to read this book, Id suggest to just get the audiobook since you can increase the playback speed and get done with the book in half the time and you can listen to it while you are driving, walking or running errands. I have read and prepared summaries of over 2 dozens books on investing and finance this year. If there is any interest, Ill be happy to share them with everyone. It might help you decide if youd want to put in the effort to read the whole book or not.  <response>: Wealthy people understand that the most precious asset we have is time. Are you borrowing from your future self? or are you investing in your future self? - In a word wealth Compound interest. 