Wednesday, April 18, 2007

The Millionaire Next Door

The Millionaire Next Door
The Surprising Secrets of American's Wealthy
by Thomas J. Stanley and William D. Danko

Good Review from Talia Mana:

According to authors Stanley and Danko there are seven wealth factors that set the wealthy apart from the rest of the population - and it isn't fancy cars, cigars and pinkie rings!

Check yourself off against this list and see if you've got what it takes...

1. Millionaires live well below their means
2. They allocate their time, energy and money efficiently in ways conducive to building wealth
3. Millionaires believe financial independence is more important than displaying high social status
4. Their parents didn't provide economic out-patient care, i.e. they were left to make and correct their own financial mistakes
5. Their adult children are economically self-sufficient
6. They are proficient in targeting market opportunities
7. They chose an occupation that they enjoy and that best suits their talents

Essentially the book advocates frugality and caution with finances that at times borders on miserly, but the results speak for themselves. The individuals interviewed for the book amassed wealth and held onto it through economic downturns and trained their children to be financially independent. Food for thought!

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