Over his 55-year career at The University of Alabama's Culverhouse College of Business, Dr. Lonnie Strickland has inspired thousands of students. Late this April (2024), he delivered the final instance of his signature lecture, "How to Make Five Million Dollars" just in time for his retirement from the Capstone.

Seeing a Need

In his lecture, Strickland explained the origin of his lifelong pursuit to teach students to be wealthy. He met a former student by chance in New York, and asked him, as was his practice, how things were going.

Surprised, Strickland asked the former student to coffee to learn about his problems, and discovered that while the alum was successful in his career and earning a high income, he had fallen into a pattern of lavish spending and consumer debt, and was having trouble keeping his head above water. Strickland had a plane to catch, but promised to work on a solution and call the alum in a couple of days.

A few days later, as promised, Strickland called.

Strickland then realized that he had an opportunity to teach students how to avoid situations like this—in fact, to become wealthy—and it became his primary mission in his teaching career.

Don't Buy the Car!

Delayed gratification is difficult for everyone, and especially new college graduates. The allure of finally being able to afford things like new cars is strong.

But since the average American car payment is currently over $700 per month, that money might be better spent elsewhere.

Strickland, in his lecture, posed a scenario: A friend buys a new car early in life. You, however, resist, and continue driving an old one. Instead of a car payment, you work to pay off consumer debt and then take the money you would be spending on a car payment and invest it instead.

Humble Millionaires

"I need something to tell people that I am somebody," said Strickland during his lecture, describing the near-universal tendency to buy depreciating assets like cars or designer clothing to announce status.

But where do real millionaires shop? Often at outlet malls.

How much do their houses cost? Often under $400,000.

What kind of wine do they drink? The kind that costs about $10 a bottle.

How do they travel? Often they go camping instead of on luxury cruises.

And what do they drive? Often older, reliable, non-flashy vehicles.

That's because according to Strickland, actual millionaires have learned to be content with a modest way of life in order to free up money to invest for the future. Instead of trying to keep up with peers like the young alum that Strickland met in New York, they prioritize health, family, friendships, faith, and an inexpensive way of life with low or no debt.

This Is Your Life

In the lecture, Strickland laid out his projections for building wealth.

Assuming a monthly investment of $750 (a bit more than the average car payment) into an investment instrument returning an average of 10% like the Vanguard VFIAX, and no taxes, starting at age 21:

• After ten years the balance will be $155,000.
• In 20 years, by the time the investor is 41, the balance will grow to $574,000.
• In 25 years, when the investor is 46, that $750 a month will become the first million: $1,003,000.
• And in 41 years, by the time the investor is 62, the balance will be $5,292,820.

Now...Borrow Money?

In his lecture, Strickland emphasized avoiding and minimizing debt, so it may seem odd that part of his wealth-building program involves borrowing money. But there's a good reason for it.

The downside of avoiding debt like car loans is that it can make it difficult to establish a strong credit history. So Strickland suggests a graduated program of borrowing money, starting with a $1000 in the first year of work. Pay the loan payments promptly, and then pay it off early. Repeat the process the following year for $2000, then $3000 the following year, and so on.

In this way, you establish a strong record of credit, so that when you want to start a business or need another large infusion of capital, you can get it an excellent interest rate.

Rich vs. Wealthy

With a title like "How to Make Five Million Dollars," you might expect Strickland's lecture to be about materialism, but he distinguishes between rich and wealthy.

"I can make anybody rich," Strickland told his audience. "I just made you rich. But would you like to be wealthy?"

To be wealthy, Strickland said, is to be able to give back. This can take the form of philanthropy, using financial resources to support worthy causes and help improve the world. A solid base of financial wealth helps if this is your goal.

But giving back doesn't have to cost money. For instance, Strickland himself volunteers with a reading program for at-risk youth.

"You don't have to be rich to be wealthy," Strickland said. "But it helps along the way."

A Wealthy Life

Though he's modest enough not to announce his own net worth, Dr. Lonnie Strickland implied, in the conclusion of his lecture, that he has followed his own principles from a young age. This would suggest that he, himself, is a multi-millionaire.

But again, Strickland was careful not to lose sight of the bigger picture. He encouraged his audience to start building wealth where they are, even if it is later in life, and to prioritize taking care of the people around them. He urged students and alumni to keep in touch, and offered to help them in any way he can.

"Because we—all the faculty here—can never be successful until you are first successful," he concluded. "We get our success through you. So Roll Tide! We love you. Thank you very much."

Strickland walked off the stage to a standing ovation, a fitting end to career spent helping others to achieve their goals, take care of their loved ones, and ultimately, change the world.

What a wealthy man, indeed.