The Millionaire Next Door Post 5

An interesting topic came up in "The Millionaire Next Door" the topic was parents who give their children money, gifts, etc and do not teach them how to spend carefully and how to take care of their money. The author calls this economic outpatient care, wealthy parents that give their kids what they want. This book shows studies that show that kids who receive economic outpatient care, end up not earning a lot of money. They are dependent on their parents and do not know how to be smart with their money and possessions. They also have a safety net and that is their parents. Some people need the money or else they cannot put food on the table, people who have received economic outpatient care are not in this position, they do not have their backs against the wall. However, people who have economic outpatient care from their parents usually get put through college without worrying about it. Therefore, they have their education taken care of and do not leave college in debt.
Every page in this book has a lesson and makes me self reflect a lot, which I believe is a good thing. I am happy I read this book and hope to find more like it!

The Millionaire Next Door Post 4

This book is still very interesting to me. The author seems to have how to be a millionaire understood through his studies. I wonder how he does for himself...probably pretty well with this book being a great success. The millionaires Stanley talks about in this book are well educated. 4 out of 5 have college degrees, the 1 in 5 being the rare occasion. 18% have masters degrees, 6% have medical degrees, 6% have Ph.D.s, and 8% have law degrees. I think of each stage of schooling as a weeding out process. Most kids go to high school, not all go to college but the majority do. Some do not make it through college while some do. Out of the some that do a small amount go to graduate school and make their way through. If you make your way through you have survived! It is the survival of the fittest, the fittest being who can stand school the longest. However, each degree one earns the more valuable they become. Someone with a masters in business as well as a law degree is worth more than someone with just one of those degrees, let alone someone with neither. Although this book does not say graduate school has anything to do with being a millionaire.

The Millionaire Next Door Post 3

As I continue through this book I am still enjoying it. The author, Thomas Stanley did extensive research to write this book and I think he is a very smart man. I want him to take care of my money when I get older. The author explains what a Prodigious Accumulator of Wealth or a PAW, who is someone who is very good at dealing with their money. Someone who invests their money in places that they will likely have a good return, and someone who does not spend frivolously. The author also talks about how it is much easier to become more wealthy when living in not very wealthy or high status community. Because someone is not living in a high status community it means they are spending less on their home, taxes on their home, and the size of their land can be increased. I am really enjoying reading this book, I am glad Daniel recommended it to me. There are similarities to the book I read second quarter, "7 Habits of Highly Effective People." Both books give advice on how to live what many would consider a better or a more effective life. I enjoy reading these and trying to apply some of these skills and ways of life to myself. I find it easier said then done, but I am working on it!

The Millionaire Next Door Post 2

I ended my last post talking about a lawyer who feels the pressure to keep up their appearance. On the other side of the spectrum you take a farmer who does not live near people with great wealth nor do they feel the pressure to look the part. That farmer is spending far less money than the lawyer therefore, they may be making less but are spending less so it is not much of a difference.
The author talks about people who take good care of their money. They place safe investments, and if they place a risky investment it has a chance for a big reward. People who gamble or put money into long odd stocks are not taking good care of their money will lose large sums of it.
The author has been study wealth for over 20 years in American and uses real life examples. This book talks about the idea of "spending tomorrow's cash today" and how dangerous this is. This leads to debt quicker than anything. "Spending today's cash tomorrow" creates wealth, and spending that money intelligently, and in ways that make give them good returns on their money over a period of time.  I am enjoying reading this book and it has opened my eyes to how to really acquire wealth in America. I feel this book can help a lot of people who have struggle financially and people who are well off. Everyone can be helped!

The Millionaire Next Door Post 1

All second quarter I listened to my buddy Daniel rave about the book, "The Millionaire Next Door." He told me several times how I "must" read the book. So, when we got a second book assignment I knew right away what I would be reading, the highly recommended book, "The Millionaire Next Door."
This book disproves many peoples, including my own theory on this countries millionaires. Millionaires are often thought to be big time businessmen, celebrities, doctors, etc. Two-thirds of the millionaires in our country own their own business. Taking a step back the common misconception on how to acquire wealth can be blamed on the media and what fascinates our people. The millionaires we celebrate are the athletes, movie stars, and musicians, and we often celebrate the wrong ones. Our media throws this in our face and there is no way of avoiding it besides ignoring it. However, people don't and it is hard to do, so those are the millionaires we hear about. Although, the other two-thirds are who should be celebrated. People who worked hard to own their own business.
You are also hit with the statistic that 80% of millionaires are first generation.
We also view wealthy as a Lawyer who drives wears beautiful Italian suits and drives a BMW. This book examples how these people are spending their money to keep up the appearance of being wealthy, in turn this lowers their wealth. The counter argument being if you are making a lot of money you should spend it to enjoy it, because how much does money really matter?