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Old 01-25-2012, 07:58 PM
 
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"A happy childhood is the worst possible preparation for life.". Kinky Friedman
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Old 01-26-2012, 03:31 AM
 
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Originally Posted by BLUEDIAMOND64 View Post
The Market is not like it was years ago. It is very unpredictable. It is up and down, and maybe it will recover but who knows when. I did not want to gamble my principle. Not really talking about being cheap, but not having car payements and enjoying life, but always putting money away. I read Dave Ramsey's Total Makeover and like some of it but did not like other parts. I am interested in readying this as I will take certain points and apply them and others I probably will not agree with. There are som people that work, work, work all their lives and never get a chance to enjoy things. I can say that every day I get out of bed I enjoy life, friends, and yes I love the library. Except getting special books for my daughter, I get all my books from the library. Thanks Math for your perspective.


actually i think the best investment for the next 5 years and maybe longer will still be the long treasury bonds.
they beat every asset class the last 30 years,20,15,5, and 1 year periods.

with deflation more of a threat than inflation and all the worlds grief i still see nice gains ahead with little risk.

i cant say for sure and i certainly wouldnt bet the ranch but i think everyones going to be so surprised when the treasury bond does it again.

while saving more and not throwing our money away is part of the equation there is more to that story.

its really a 2 part story with you working for your money and then your money workng for you..

thats also not touched upon in the book much and is a very important part of being financially succesful.. there is lots of useless talk about financial advisors in the book but little talk of what to do on your own.


needless to say i wasnt impressed with the book.

if i had to choose a road map i much prefer reading ray lucias books,ed slotts books or anything by harry brown. that advice has never failed me yet . an important part of what we have is what taxes later on leave us with and not paying 1 penny more than we are required to is another topic missing .

i find thats funny because the books premise is its not what we make its what we keep and there is no discussion of keeping it.

i think your going to find most of whats in the book you already know and if your not doing it by now its because you dont want to do it.

so go ahead and read it if you want but dont set yourself up for the expectation of learning much and you wont be dissapointed .

Last edited by mathjak107; 01-26-2012 at 04:00 AM..
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Old 01-26-2012, 01:28 PM
 
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Quote:
Originally Posted by BLUEDIAMOND64 View Post
Harry, any ones out there that are more current that you would recommend?
I do think The Millionaire Next Door is a good book and not outdated at all.

One book that I think is as good or better is The Difference by Jean Chatzky. It is more current, published in 2008. It's also less preachy and in some ways more prectial in it's approach than Millionaire.

Amazon.com: The Difference: How Anyone Can Prosper in Even The Toughest Times (9780307407146): Jean Chatzky: Books
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Old 01-26-2012, 01:33 PM
 
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Originally Posted by Cletus Awreetus-Awrightus View Post
I agree with that; however, having a million dollars does not make a person rich.

I think it should be titled, "The frugal upper middle class person next door."
$1M was worth more back in 1996 when the book was published. So, in that sense, it's outdated. However, the info contained in the book is still relevant.

As far as $1M not being really rich....well, that depends on your definition of rich. Most people's definition of rich is "someone who has more than me" and that's true at every level of income and net worth. Objectively speaking, $1M is still a lot more than the vast majority of people have, even by retirement age.

Their follow up book, The Millionaire Mind, focused on people with $10M or more, so maybe you should read that book if you are interested in how "real" rich people got that way.
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Old 01-26-2012, 01:56 PM
 
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Originally Posted by City Guy997S View Post
Good reading, easy book (not 500+ pages of economics).

I just wonder if they ever define the fine line between saving for the future and enjoying your life every day....
They didn't talk about this too much. But most millionaires have above average incomes, so they can generally afford small luxuries while putting at least 15% of their incomes away for long term savings/investment purposes. Where millionaires don't go crazy is on spending for houses and cars. They typically spend a lot less on these items what they're "supposed to" for people at their income level.

Quote:
Originally Posted by City Guy997S View Post
Yes skip a cup of 6 bucks latte, drive a car 10 years, payoff your mortgage in 15, wear old clothes and drop dead at age 49 with plenty of money for your heirs to spend!
It's certainly true that life has no guarantees. But the book found that most millionaires live healthier lifetsyles than the population at large, so the 'dead at 49' scenario you outline here is not common. Other books, such as The Difference by Jean Chatzky also found that well off folks tend to live healthier lifestyles.

I think it's safe to say there are a lot more impoverished/semi-impovershed senior citizens out there than there are folks who saved every dime and didn't make it to retirement.

Quote:
Originally Posted by City Guy997S View Post
I had a close friend die at age 54 of cancer. He had gone through a rotten divorce, had a "paid for" recently renovated apartment, a few bucks in the bank (but not loaded rich by any means). His regrets in life had nothing to do with money (lack or surplus of it).
Millionaires are less likely to divorce than the population at large. Divorce is a wealth killer. It also tends to shorten life expectancy, especially for men. (See The Longevity Project for more on that subject). One good way to prevent divorce is to marry someone with an ethic of frugality.


Quote:
Originally Posted by City Guy997S View Post
You never know how many days left you have, don't sell yourself short on the little things that make you happy everyday!
There's nothing wrong with enjoying the little things, that's true. But too often, people tend to frame this as an either/or type of scenario. Most people can enjoy the little luxuries of life while still putting money away for rainy day savings as well as retirement.
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Old 01-26-2012, 01:59 PM
 
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Originally Posted by MaseMan View Post
I think some people are missing the point. Most of the people in "Millionaire Next Door" don't live like hermits. They make fun purchases and enjoy life, but the difference is that they budget their household expenses and plan for their major purchases. They don't make impulse splurge purchases like we would think of the stereotypical rich people on TV.
^^^This^^^
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Old 01-26-2012, 03:33 PM
 
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Originally Posted by mysticaltyger View Post
They didn't talk about this too much. But most millionaires have above average incomes, so they can generally afford small luxuries while putting at least 15% of their incomes away for long term savings/investment purposes. Where millionaires don't go crazy is on spending for houses and cars. They typically spend a lot less on these items what they're "supposed to" for people at their income level.



It's certainly true that life has no guarantees. But the book found that most millionaires live healthier lifetsyles than the population at large, so the 'dead at 49' scenario you outline here is not common. Other books, such as The Difference by Jean Chatzky also found that well off folks tend to live healthier lifestyles.

I think it's safe to say there are a lot more impoverished/semi-impovershed senior citizens out there than there are folks who saved every dime and didn't make it to retirement.



Millionaires are less likely to divorce than the population at large. Divorce is a wealth killer. It also tends to shorten life expectancy, especially for men. (See The Longevity Project for more on that subject). One good way to prevent divorce is to marry someone with an ethic of frugality.




There's nothing wrong with enjoying the little things, that's true. But too often, people tend to frame this as an either/or type of scenario. Most people can enjoy the little luxuries of life while still putting money away for rainy day savings as well as retirement.
with money or should i say lack of money being the number 1 reason couples fight its no surprise the divorce rate for millionaires is 1/3 the rate of non millionaires.
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Old 01-26-2012, 04:36 PM
 
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I read it. It is a good book, but essentially says that same things over and over again with different examples to back it up over and over again. What got out of it was this:

Stop buying expensive things just to impress other people. Just because it costs more doesn't make it better.

Don't spoil your kids. They won't learn the value of a dollar and will be entitlement minded and leaning on you clear into their 50's and beyond.

Learn how to invest. Grow more money from the money you earn rather than spend every cent you earn.

Yes, good book.
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Old 01-26-2012, 04:42 PM
 
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actually you said it all beautifully. no reason to read the book now lol
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Old 01-26-2012, 07:23 PM
 
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Originally Posted by mathjak107 View Post
with money or should i say lack of money being the number 1 reason couples fight its no surprise the divorce rate for millionaires is 1/3 the rate of non millionaires.
I think this is a chcken and egg question. I see money problems as the by-product of both ignorance and unhealthy emotional patterns. When people fight about money, they're often really fighting about other stuff, issues like power and control, reverting back to unhealthy emotional patterns that started in childhood, etc.
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