I have had multiple people suggest this book to me, a few friends, one of my managers, and two out of two of my business professors have suggested everyone in the class read this book. I finally got around to reading it and it really does change your whole perspective on not just who is affluent, but how to become affluent.
According to their study your average millionaire is married and owner of a blue collar business, such as a janitor business ect. They also live well below their means and put lots of money into the stock market and bank. For example, somebody making $110,000 and worth $1.5 Million is living in a neighborhood with an average income of $50,000. It takes both a good offense (high income) and very good defense (being frugal). You really need to pay yourself first. You can do that by putting money into the bank account or the stock market with more emphasis on the stock market. The also spend their money on American made cars as opposed to the expensive foreign luxury models.
Living in high class neighborhoods can doom one to never being rich because they have to make all the big purchases to compete with their neighbors. Think about it, if all of your neighbors have new BMW are you more willing to buy a luxury car or your average Ford sedan? Those with high savings and strong defense can live off their savings for over 10 years without sacrificing their quality of life. This book knows it cannot over emphasize the importance of being frugal. Lets say a doctor makes $250,000 a year but at age 50 only has $800,000 in savings and another family makes a combined total of $100,000 per year but has $1.1 million saved up at age fifty. Who do you think would be able to live longer if they lost their jobs or wanted to retire. A high powered offense is great for being rich, but without a defense you will just spend away and have a higher chance of eventually becoming bankrupt or working into your late years. Having a high powered savings and living below your means will help you stay flexible and comfortable in case of adverse situation and be financially free. This book is great.
"The best way to get a man to do something is to suggest they are too old for it." -Unknown
According to their study your average millionaire is married and owner of a blue collar business, such as a janitor business ect. They also live well below their means and put lots of money into the stock market and bank. For example, somebody making $110,000 and worth $1.5 Million is living in a neighborhood with an average income of $50,000. It takes both a good offense (high income) and very good defense (being frugal). You really need to pay yourself first. You can do that by putting money into the bank account or the stock market with more emphasis on the stock market. The also spend their money on American made cars as opposed to the expensive foreign luxury models.
Living in high class neighborhoods can doom one to never being rich because they have to make all the big purchases to compete with their neighbors. Think about it, if all of your neighbors have new BMW are you more willing to buy a luxury car or your average Ford sedan? Those with high savings and strong defense can live off their savings for over 10 years without sacrificing their quality of life. This book knows it cannot over emphasize the importance of being frugal. Lets say a doctor makes $250,000 a year but at age 50 only has $800,000 in savings and another family makes a combined total of $100,000 per year but has $1.1 million saved up at age fifty. Who do you think would be able to live longer if they lost their jobs or wanted to retire. A high powered offense is great for being rich, but without a defense you will just spend away and have a higher chance of eventually becoming bankrupt or working into your late years. Having a high powered savings and living below your means will help you stay flexible and comfortable in case of adverse situation and be financially free. This book is great.
"The best way to get a man to do something is to suggest they are too old for it." -Unknown