September’s read, “The Millionaire Next Door” highlights the lifestyle habits of America’s wealthiest families… Let’s review how they typically follow a lifestyle conducive to accumulating money:
1. They live well below their means.
2. They allocate their time, energy and money efficiently in ways conducive to building wealth.
3. They believe that financial independence is more important than displaying high social status.
Determine if You’re Wealthy:
The rule goes… Multiply your age by your realized pretax annual household income from all sources except inheritances.
Divide by 10.
This, less any inherited wealth is what your net worth should be!
Like the book states, “It is never too late to become an accumulator of wealth.” In order to change, you must really want to change. It is about financial planning, controlling purchasing behavior and even, “Cold Turkey.”
“Whatever your income, always live below your means.”
“It is easier to purchase products that denote superiority than to be actually superior in economic achievement.”
“Financially independent people are happier than those in their same income/age cohort who are not financially secure.”
“Invest 20 percent of realized income into financial assets that tend to appreciate in value, without generating realized income…tax free municiples, tax sheltered real estate and stocks with unrealized gains.”
“…Never weak of heart and always ran a highly productive, low cost operation.”
“Good health, longevity, happiness, a loving family, self reliance, fine friends – If you have five, you’re a rich man. …Reputation, respect, integrity, honesty and a history of achievements!”
“Money is the icing on the Cake.”
All in all the book is a detailed study on America’s Wealthiest, their lifestyles, attitudes and spending habits. It inspires with statistics of self made millionaires and emphasizes that building wealth takes discipline, sacrifice and hard work.
The book may surprise with its portrait of a typical millionaire and also show us that wealth and financial independence are within our reach if we choose to have it.
Please share what you enjoyed about this book and how it has inspired your own wealth building journey! Hope you’ve already got a copy of October’s new read…”Relentless”…