Monday, July 25, 2011

Millionaire Next Door

My dad gave me this book as a wedding gift, along with another financial book that I have yet to read. As you can see, I read quite a few books before it. And it was actually quite a short book and very interesting, but I had to force myself to read it. It is full of statistics and charts, which I know they needed to prove their point, but I guess I'm too stupid and just want the stories. And everything Stanley and Danko were saying should be obvious, but I guess we need it spelled out to us plainly.

I did take notes though!
  • Be frugal, frugal, frugal
  • Make a budget (know exactly how much you spend each month and year on everything)
  • Get a financial advisor
  • Get and accountant
  • Invest 30% of your money
  • Be a PAW (prodigious accumulator of wealth), now an UAW (under accumulator of wealth)
  • You aren't what you drive
  • Don't hand out money to adult kids
  • Whatever your income, always live below your means
  • Teach your children to fish (be independent)
  • Teach your children to be courageous
  • If your goal is to become financially secure, you'll likely attain it...but if your motive is to make money to spend money on the good life,'re never gonna make it.
  • Money should never change one's values...making money is only a report card. It's a way to tell how you're doing.
So I'm going to set up a budget and try to use as many coupons as I can. Because we need to save up for future bebbes ♥

I read another good blog post book review about this book. You can read it be clicking HERE.

And I found this blog post very interesting. Click HERE.

It's so tempting to keep up with the Jones' today, but I'm going to resist the temptation.

1 comment:

jymmebe said...

When I saw this post, I just couldn't resist, I had to comment.

Your parents are wise to give you financial advise so young . . . a thought/old memory came to me as I was reading this . . .

You were just a little baby, and if I remember right, it was before Tashi was born. I remember seeing your dad walking to one of the grocery stores on Thunderbird Road, in Glendale in the area of the apartments that your parents and my husband and I were living. I remember him having a plastic grocery bag filled with what just looked like small cans of tomato sauce . . . I know that because I remember knowing, at that time, that it was on sale 10/$1 at a grocery store. I remember thinking that I couldn't believe that he was walking in the hot Arizona heat to go buy tomato sauce that was on sale. Now, I know that your folks had a car to drive, but I am sure that he was probably thinking that he could save money just walking to the store and not driving. At that time, I couldn't have imagined that one could just go to the store and buy tomato sauce, and nothing else. Your dad had my respect long before seeing his example, but he taught me a good lesson that day!

Your parents are great examples and teachers!

Just thought I would share! :)