The Millionaire Next Door : The Surprising Secrets of America’s Wealthy by Thomas J. Stanley ,William D. Danko

Check your neighbor out

Same in Instagram , most people who live in expensive house and flexing with cars dont actually have much wealth.

Wealth is not the same as income. If you make a good income and spend it all, you are hot getting wealthier. You are just living high. Wealth is what you accumulate, not what you spend.

7 denominator to build wealth :

1. Live well below their means

2. Allocate time, money, energy efficiently, in way contribute in building wealth

3. Believe financial independence is more important than display high social status

4. Parent did not need to provide economic out-patience care

5. Adult children are economically self sufficient

6. Proficiency in targeting market opportunities

7.Chose the right occupation

Most people who become millionaire have confidence in their own abilities. Allocating time and money in pursuit of looking superior often has a predictable outcome : inferior economic achievement The foundation stone of wealth accumulation is defense, and this defense should be anchored by budgeting and planning

Efficiency is one of the most important factor of wealth accumulation. Under–performer spend more time worrying than take proactive step to change their tendencies.

Planning, budgeting, being frugal are essential part of building wealth. Will a person who constantly worry about earning more money to enhance his lifestyle become wealthy ? probably NOT. We should operate our household like a productive business. Best business hire best people.

If you goal is to become financially secure, you will likely attain it, but if your motive is to make money to spend money on good life, you will never gonna make it.

Economic out-patience care means when parents give adult children and grandchildren money.  The more dollars adult children receive, the fever they accumulate, while those who are giving few dollars accumulate more.

Consider the parents who assure that buying a house for the kid is a one-off phenom. They are wrong ! 50% of them will try to fit in the expensive neighborhood and those they will consume more.

In addition to education, create an environment that honor independent through and deeds, cherish individual achievements and reward responsibility and leadership.

Rules for parents and productive children

1. Never tell children their parents are wealthy

2. No matter how wealthy you are, teach your children discipline and frugality

3. Assure that your children wont realize you are well off until they have established a mature, disciplined, adult lifestyle and profession

4. Minimize discussion that child will inherit, for example fake promise will lead to discord and conflict.

5. Never give cash or significant gift to your adult children as part of negotiation strategy.

6. Stay our of your kid family matter

7. Don’t try to compete with your children

8. Always remember your children are individual

9. Emphasis your children achievement, no matter how small, not their /your symbol of success

10. Tell your children there are lot of things more valuable than money

Stay in the course of getting wealthy !

Until Next time

Get the book here >>> shop-now-button-copy

 

 

 

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