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Old 01-19-2009, 10:33 AM
 
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I loved this book.

One of the things that sticks in my mind is that you can NOT assess a person's financial status by observing how he or she lives.
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Old 01-19-2009, 10:41 AM
 
Location: CA
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Yeah I would say that's accurate. I read the book a while ago. Is this the same book that talks about assessing a car price/lb?
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Old 01-19-2009, 10:44 AM
 
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Default Billionaires.....

HOW THEY BECAME WEALTHY
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Old 01-19-2009, 10:44 AM
 
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I love that book. Opened my eyes up to things that make sense.

All more forgiving of seeing washing machines and junk cars out front of a trailer or a house that is in need of 'updating' but the owner drives a 20 year old car.

So a person in their 30s who own outright a home and car-eventhough not upscale- has the potential to be wealthier than those who make twice their income and live in a bigger house and drive new cars-that are owned by the bank.
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Old 01-19-2009, 10:46 AM
 
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I love the book too!
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Old 01-19-2009, 10:50 AM
 
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Quote:
Originally Posted by VegasGrace View Post
I love that book. Opened my eyes up to things that make sense.

All more forgiving of seeing washing machines and junk cars out front of a trailer or a house that is in need of 'updating' but the owner drives a 20 year old car.
Well I wouldn't go that far as far as the washing machine and junk cars in front of a trailer or house that needs updating and driving a 20 year old car. You can be frugal without being nasty. There is no reason to have junk cars and old appliances in front of your house and even if you are being frugal you can keep your house looking nice. I have no tolerance for that kind of thing! You can also drive a decent car by saving for it and then buying instead of going into debt for it. I don't need to look like a millionaire (whether I am or not), but I'm sure not going to look like a hillbilly, either!
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Old 01-19-2009, 11:01 AM
 
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Default Several years ago I read this....wish I knew who to credit...

Not sure if it was in the "The Milionaire Next Door Book" or someone talking about it:

Much of the middle class is living affluently and careening toward disaster.

Focus on your own financial life and feel no sense of failure of the appearance of wealth friends and relatives seem to have
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Old 01-20-2009, 08:40 AM
 
Location: Forests of Maine
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I have read it, and I recommend it often.

My copy is worn, tabbed and highlighted.

After reading it, we really began to notice things in our relatives and workmates.

The relatives that I had thought were very wealthy, were not.

We focused our spending and investing habits in a manner which follows MND.

And as a result, when I became eligible for my 20-year pension, we were able to retire. Our portfolio paid for a farm with no mortgage.

I was able to retire successfully at 42. It has been 7 years now. And it was really made possible from our reading and re-reading MND.

Most people that I know who also have 20-year pensions, are also deep in debt. They could not support themselves using their pension even if they had no debt.
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Old 01-20-2009, 09:31 AM
 
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It is sort of funny how one of the last ways to get a decent pension after a pretty short career of 20 years is by working for the government and the actions of many elected officials are exactly what makes it nearly impossible for most people to retire securely. Massive debt is likely to drive inflation to extreme levels in the long terms, excessive regulation makes the US unlikely to grow at a rate that other less regulated economies have experienced...

There have been a lot of changes since Drs. Danko & Stanley did the research their book is based on, but I suspect more than a few things in the "bible" of prodigious accumulators of wealth are still true: http://en.wikipedia.org/wiki/The_Mil...or#Main_Points The one I worry about most is that changes in the regulatory scene of government may curtail the ability of private business owners to grow the value of their ventures.

Every thread in a government sewn "safety net" come not from a magical "government spinning mill" but from the real income taxes of hard working men and women. Ironically the smartest government workers /retirees probably work the hardest at sheltering their own income...
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Old 01-20-2009, 12:03 PM
 
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Keep an ongoing list on the fridge to jot down needed grocery items and take it when you go to the store. 81% of millionaire women create a detailed list before they go to a store so they aren't throwing something haphazardly in the grocery cart because they aren't sure if they need it. A list allows one to get in and out quickly which means less money is spent. Not knowing what groceries you have on hand can cost you big bucks over time.

Knowing the importance of comparing prices on everything, sixty-one percent of millionaires switched telephone companies at least once to get a better rate. They call the billing department and go over each bill by asking specifically what they are paying for. Phone companies are notorious for having lots of extras on your bill and you don't know it. Ask if you have a long distance plan or a wiring plan. If you had caller ID feature but now have a phone without the caller ID display you may be handing away $102 a year for nothing. Have them remove the feature.

Shop around for less expensive insurance at www.insure.comwhere you can save up to money on auto, homeowners and life insurance.

If you want to act like a millionaire so you can end up being one, donít be quick to get rid of things. Millionaires buy quality items and keep them. Almost 60% had furniture reupholstered or refinished, and 52% said they had clothes mended or altered. They take good care of what they have. The longer lifespan of quality items means you end up saving more in the long run, since you donít have to buy replacements often.

Buy the classic winter coat or sturdy sofa. The classic clothing will look great for years, saving you money, unlike the latest fads in clothing which you will throw out after a season or two. (Classic clothing will get you money from consignment shops while clothing that was once trendy and now just hideous noblody wants. (When you look at old pictures you will be the one who always looks timeless.) Do your own dry cleaning with Dryel, found in the laundry soap aisle.

Millionaires donít carry large balances on their credit cards.To get rid of your debts fast, try adding just a few extra dollars to your credit card payment each month. This little trick will get the average credit card balance paid off almost two years sooner.

Millionaires and future millionaires avoid expensive cups of coffee and invest the $4.60 daily savings. (That is $1642.50 a year. At only 5% interest not having that one cup will give you over $21,000 in your savings account in 10 years.) (Ok, you aren't going to get 5% right now but that cup of coffee also might have gone up in price, too.)

Consolidating all of your trips into one or trying to bank closer to home or even walking instead of driving while saving one gallon a day can put money into your savings account for the future.

Never be ashamed of being frugal. If someone teases you for driving an older car they are the ones who most likely will dig themselves deeper in debt to drive a new one. It is the wealthy ones who will understand why you do the things you do. You can laugh all the way to the bank!
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