What Do 90% of Millionaires Have in Common? Surprising Truths from “Frugal Life”

Skip the Latte… Start Here

I remember this one Saturday morning—totally ordinary. My phone buzzed with a bank alert: “Deposit: $45.” It was just a little refund from an overpaid bill, but all I could think was, “This is how it starts.” Not from windfalls or lottery wins, just tiny repeated choices. Have you ever wondered what lies behind real wealth? It’s not the glamorous stuff. Actually… What do 90% of millionaires have in common?

It’s simpler (and way less flashy) than you think. It’s the strategic habits—the everyday frugality, making money decisions with a plan, and yes, investing in assets that grow. If you’re imagining stacks of cash hidden in secret vaults or wild crypto fortunes, well… pump the brakes. The secret is a bit more boring—but also way more achievable for regular folks like us.

So, Why Real Estate?

Is It Only for the Ultra-Rich?

You’d think so, right? I used to believe real estate was reserved for people who, I don’t know, wear fancy watches and drink sparkling water at lunch meetings. Here’s a funny story though: My friend Emily—she was a coupon queen, always skipping store-bought coffee and rolling those savings into her first fixer-upper. Her budget was tight. But she hustled, learned to paint walls on YouTube, and figured out the numbers… The next year, renters were paying her mortgage, and she was still brown-bagging lunch. That’s the real magic: frugal choices stacked up until she owned an asset that kept, well, giving.

What’s the Core Millionaire Move?

Based on so many studies and classic advice, this is no secret handshake. The punchline? What do 90% of millionaires have in common? Property. Not yachts or Lambos or private jets… but real estate—usually investment properties that deliver passive income every single monthreal estate investing research. Small surprise, then, that so many folks in the millionaire club began with just a modest first investment.

Table: Rental Income Math (A Super Simple Example)

Small numbers, right? But month in, month out… And what if you had two, or five, or ten of these properties?

Need a little inspiration from someone with frugal habits? It’s worth reading Is Warren Buffett really frugal? for a masterclass in living modestly while building legendary wealth.

Home Values: Why They Go Up

Can You Really Count On Appreciation?

This is where the magic compounds. Let’s say you bought a house in a so-so neighborhood. Maybe it was a “fixer,” maybe not. Fast-forward a decade. If you picked a spot near growing schools or job centers, that sleepy street could double in value. I know this because my neighbors did just that—bought at a discount, held tight, grew equity year by year. They didn’t rush; they just let time do its thing.

Still skeptical? Consider how, across the U.S., appreciation averages between 4% and 7% per year over the long haullong term appreciation study. Sure, there are dips, and timing matters. But step back and see the forest: Over decades, the odds are so much better than letting your hard-earned savings wither away in a checking account.

How Does It Stack Up Against Stocks?

Stocks vs. houses—the age-old debate. Honestly, both can work wonders. But here’s something a lot of folks miss: when you own properties, you often get paid in cash flow (rental income) and appreciation (rising property values). Stocks, on the other hand, mostly pay you when you sell—unless you’re deep into dividends. Oh, and houses don’t get wiped out by corporate scandals… they just stand there, rain or shine, brick by brick.

Still, don’t get sucked into “either/or”—the 90% don’t! Want a deeper dive into protecting, growing, and hedging your bets with assets like these? The What is the 1% rule to get rich? will clear up exactly how much rent a property should bring in relative to its price.

Taxes: Hiding in Plain Sight

Where Are the Sneaky Savings?

You know that moment during tax time… hunting for any sort of “deductible” or old receipt to save a few bucks? Well, investment properties come with all sorts of built-in savings. Depreciation. Mortgage interest. Repairs. Property taxes. The government literally makes it easier for property owners to pay less—legally!

One frugal mom I know used to dread April. After landing her first duplex, her CPA handed her a check, not a bill. She called it “magic money”—really, it was just line items on a tax form that most folks never unlock. She ended up banking those yearly savings for her kids’ college funds. Who says tax codes can’t be family friendly?

Little Story: The 1% Rule and Tax Perks

A buddy of mine crunches numbers obsessively—like, nearly to the point of spreadsheet-induced headaches. But he swears by the What is the 1% rule to get rich?. When he bought in a midwest town, the rent easily covered more than 1% of the price. Come tax season, those deductions meant his “true” return was even higher than he’d hoped.

Leveraging Other People’s Money (Seriously)

Do You Have to Be Rich?

Here’s the secret—most property owners didn’t plop down a pile of cash for a building. They got a loan. Maybe an FHA mortgage with a low down payment, or maybe pooled savings with a friend or family. The rest? Covered by the rental income. Your tenants basically pay off your loan for you… Isn’t that wild?

That’s what the big names do. For more on how being frugal plays into this “secret formula,” it’s worth visiting Is frugal related to lack of luxury?. Spoiler: Living well doesn’t mean living lavish.

OPM in Action

Let’s say you find a $150,000 duplex. Put $7,500 (5%) down with an FHA loan. The rest? Handled by the bank. Now the renters step in, cover the mortgage payments, taxes, insurance. You’re building equity with a pretty small upfront investment.

By the way, negotiating—on price, repairs, you name it—isn’t just for sharky billionaires. It’s for regular people who want to stretch every dollar. (I once bargained for months to get the right deal on a property and it was…well, stressful, but so worth it. Every dollar I saved became another dollar to invest, which made all the difference—a tip straight from those “frugal millionaire” playbookshow a frugal millionaire built wealth.)

Let Time—and Tenants—Do the Work

What If You Could Sip Lemonade and Watch the Meter Roll?

This is where it all comes together. If you’ve picked a good place, locked in a decent rate, and kept your expenses in check… every month, your renters chip away at your loan. Ten years go by. Sure, you had to unclog the occasional drain (or pay someone to do it), but at the end of the journey, you own a property that’s worth way more. You might not even notice the progress day-to-day—but when you look up, everything’s different.

Is It Really That Simple?

“Simple” doesn’t mean “easy.” Life throws curveballs. Sometimes there are vacancies, or a roof leak, or city drama about short-term rentals. But step back—every year you stick it out, your risk drops and your potential rewards go up.

I love telling the story of my cousin who started with a $1,000/month rental in a not-so-posh part of town. She never shopped for luxury (her words: “Target is my Chanel”). But now, after 12 years, those “boring” checks from tenants have transformed into real freedom—her last summer vacation to Greece was paid for in passive income. Her trick? Not getting dazzled by lifestyle inflation and always investing the extra instead of spending it.

The Mindset: Steering Your Own Ship

Does Frugality Mean Sacrifice?

That’s the trick question, isn’t it? People mix up “frugal” with “deprived.” But if you check out Is frugal related to lack of luxury?, you’ll see there’s a real difference. Millionaires—not celebrities, just regular millionaires—tend to be surprisingly ordinary folks. They budget. They say “no” to the newest phone and “yes” to paying off debt or investing that bonus check.

You’re not giving up fun. You’re just giving up the impulse. It’s more like: “I’m skipping the extra streaming subscription, because I want to invest every dollar towards freedom.” That’s not deprivation; that’s intentional living. And it builds this sense of—you guessed it—control.

Five-Step: Starting the Frugal Millionaire Way

1. Track every dollar. For real. Use sticky notes, apps, a spreadsheet… whatever works for your brain.
2. Set an audacious, yet achievable target. (“Down payment in two years”—not “overnight millionaire.”)
3. Automate your savings. Out of sight, out of (spending) mind.
4. Learn the 1% rule and run the numbers before buying an investment. If the rent won’t cover at least 1% of the purchase price, keep looking.
5. Surround yourself with others who share your values. One dinner with a super spender can wreck your month’s discipline—so recruit a “frugal squad” to keep you honest.

The real move? Get obsessed with progress, not perfection.

Wrapping It Up: Your Frugal Path to “Millionaire”

So, let’s answer it plainly: What do 90% of millionaires have in common? They quietly build wealth through real estate, fueled by frugal habits, a healthy respect for their own money, and a long-term plan. They don’t show off. They buy things that create freedom—rental properties, not flash; choices, not constraints.

This isn’t about getting rich quick. It’s about leveraging the everyday wins—skipping takeout, waiting for sales, saying “not yet” on upgrades—so you can turn tiny habits into assets that pay you for life. Millionaires aren’t superhuman. They just play the long game, and they use the rules everyone else ignores (tax breaks, leverage, the 1% rule) to stack the deck steadily in their favor. If you ignore the noise and focus on building real, lasting value, your future is in your own hands.

Ask yourself: What’s one frugal thing you could do today? What would you do with the extra cash you save? Could you put it toward your first property, or invest it for the future? Let’s trade stories and ideas—after all, the millionaire club is a whole lot more welcoming (and full of everyday folks) than you’d ever guess. You’ve totally got this… and I’ll be right here, rooting for you, every messy, bold, life-changing step of the way.