Tag Archives: book

How not to accumulate wealth: Spend more than you earn.

Just finished this over the weekend. The Millionaire Next Door is a case study that summarizes the profile of the average American millionaire by examining peoples' financial habits and plopping those people into certain categories based on their saving-to-spending ratios. The types range from prodigious accumulators of wealth to poor accumulators of wealth to everything in-between. The book's main idea is in order to accumulate wealth you should not spend more than you earn. In fact, the opposite behavior comprises the big "secret".

This is the biggest takeaway. Regardless of your actual income, you should try to live WELL BELOW your means if you wish to become wealthy. It's not amount of money that you earn that causes wealth, but the lifestyle decision to maintain a relatively low consumption-to-income ratio that will pay off drastically over time.

The other takeaway was a little disheartening and boiled down to everything depending on a good cohesive inter-generational goal of preserving the family's wealth.  What tends to happen to millionaires that live below their means to accumulate wealth is that within a generation they achieve their goal. They have kids and those kids, having every need and just about every want provided, never really learn to live below their means. Compound that with the tendency of wealthy parents to think nothing of providing their adult children with annual allowances, money for a house or the actual house, college tuition, and the like.  When the time comes for the kids to inherit the large sum of wealth they'll likely consume and blow through it all within a short period of time unless the parent provided some type of clever trust fund direction that would propagate that wealth into perpetuity no matter what their kids do with their inheritance. Crazy, huh? Not so much. You see this scenario all the time.

I would recommend this book to all would-be prodigal children (and adults) and their parents, or anyone who'd like to see by many an example the difference between trying to achieve wealth by earning a lot of income vs. wisely not spending most of the income you already earn on mindless consumption.

Read and post comments | Send to a friend

Goal for October: read a book!

Read a book in a week or less. Read at least two books this month.
That will be twice as many as I read last month.
It is an attainable goal.

This weekend I finally had a chance to replace my (stolen) library card from summer. All my cash was spent at the previous stop– wait for it– the cleaners, and this library doesn't take credit cards. I didn't have enough pocket change to pay for the new card, but the clerk said I could take my replacement card now and pay next time, which was a pleasant surprise.
I stopped at the reference desk and inquired if the book, Nickel and Dimed, was available. The library's two copies had already been checked out. An extra copy will be sent to the branch so I can check it out by next weekend. This works out nicely because I have another book (a YA novel) to read while I'm waiting. Also, I found out that they take magazine donations. I have a few dozen that would be better off donated than chucked into the recycle bin.

Goal for next month: write a book!

Read and post comments | Send to a friend

Fit and Awesome

Running, Outdoors, Gluten Free, and Healthy Living Tips.

WordCamp Los Angeles 2017

September 29, 2017 – October 1, 2017

A Panda and a Book

Just me and my literary ramblings.


A little less talk. A lot more doing.

This Expat's Life

I love this place

WordCamp Los Angeles

September 5-7, 2014

Annette Berger

A little less talk. A lot more doing.

MIT Media Lab

Enabling technologies for expression, participation, and understanding.

Don't Call Me Cute

The Continuing Misadvantures of Jenny

nita's books

children's, middle grade, and young adult book reviews and other writing

a potter's pen

A little less talk. A lot more doing.

Transmedia Camp 101

Content Creation, Curation and Distribution in a Web 2.0 World

All the Things

A Journal of Incremental Self-Improvement

Anne Toole, writer

Learnings about writing for multiple media

Digital Pubbing

Exploring the ins and outs of the publishing industry

Not Rich Yet

It's going to happen. Gotta find something to do until then.