When researcher Thomas Stanley tried to learn how people became wealthy, he started by visiting upscale neighborhoods across America.

He discovered that many people who lived in expensive homes didn’t have much wealth. Instead, each millionaire he found didn’t look like a millionaire.

• They lived in middle-class neighborhoods, instead of “upscale addresses”
• They didn’t own the latest model cars or expensive watches
• They didn’t wear luxury clothing brands
• and so forth.

Stanley also expected most wealthy people to be descendants of old-money families, like the Rockefellers and Vanderbilts. But that wasn’t the case. Instead, he found ordinary people who built their wealth by themselves, in one generation.

His insights led him to write the bestselling book, The Millionaire Next Door. The book’s findings were simple but powerful:

“We discovered who the wealthy really are and who they are not. And, most important, we have determined how ordinary people can become wealthy.”

A lot of people confuse wealth with income. Wealth is not income. Even if you have a high income, spending it all means you won’t get wealthy. It’s all about living a fulfilling lifestyle you want below your means.

I used to have goals like, “I’d like to make a million dollars a year!” But that’s too dependent on outcomes. It gets you trapped in a cycle of chasing after more and more. And more money doesn’t lead to financial independence.

Here are the 5 steps you can take to build wealth and eventually become a “millionaire next door.”