Millionaire Next Door (Chapter 2)

productive, frugal, bankruptcy

Affluent Auctioneers: -highly _____________ types -more _____________ than their high-income-producing counterparts in prestige areas -they have experience with ____________

time, money, inferior economic achievement

Allocating __________ and _________ in the pursuit of looking superior often leads to _____________________________

frugal, wealth-building

Being __________ is the cornerstone of _____________.

really want to change, professional help, cold turkey, 15

How can UAWs transform and change after being that way for so long? 1. They must _______________________ 2. They will need some ___________________ 3. In extreme cases, the client is put into a "________________" cutback program where all elements of consumption are reduced by a minimum of _____% for the next year or two.

high consumption, financial independence

If your goal is to become financially independent, then your plan should be to sacrifice _________________ today for ___________________ tomorrow.

home, mortgage, twice

Important Rule: If you're not yet wealthy but want to be someday, never purchase a _________ that requires a _____________ that is more than ____________ your household's total annual realized income.

realized (taxable) income, unrealized income, cash flow

Important Rule: To build wealth, minimize your _____________________ and maximize your ___________________ (wealth/capital appreciation without a ______________)

high-status neighborhood

It is easier to accumulate wealth if you don't live in a ____________________

offense, defense

Millionaires play both quality ___________ and quality __________

auctioneers

More than 35% of _______________ are millionaires

net worth, realized income

Most millionaires measure their success by their _____________, NOT by their _________________.

budgeting, controlling expenses

Mr. and Mrs. Rule became millionaires by ____________ and _________________, and they maintain their affluent status the same way.

6.7

On average, millionaires in the study had a total realized income that was about ______% of their total net worth.

expenses, expenses

Small ___________ become big ___________ over time

399, 140, 235

Surveys taken say that about half of millionaires never spend more than: -$________ on a suit -$_________ on a pair of shoes -$________ on a watch

consumer, possessed by possessions, shopping, consuming

Teddy Friend (UAW) is the ultimate _____________ and is _________________________. -his main hobbies are ___________ and ___________

parents, frugal, frugal, more frugal

The affluent tend to answer "yes" to these 3 questions: 1. Were your ___________ very ___________? 2. Are you ___________? 3. Is your spouse ____________ than you are?

10

The average American millionaire realizes significantly less than _____% of his net worth in annual income

defense, defense, budgeting, planning

The foundation stone of wealth accumulation is ___________, and this ___________ should be anchored by ______________ and ________________.

36,623

The typical American household has a total net worth, including equity in their home, of $_______________

annual budget, how much, spends, clearly defined set, goals, planning, financial future

To become an affluent millionaire, need to answer "yes" to these 4 questions: 1. Does your household operate on an ________________? 2. Do you know ___________ your family __________ each year for food, clothing, and shelter? 3. Do you have a ____________________ of __________? 4. Do you spend a lot of time _____________ your ______________?

frugal, frugal, frugal

What 3 words best profile the affluent?

underinsured, life insurance

Widows of UAWs: Often, their mates were _____________ or had no ________________ at all

discipline, spending

You need to have _____________ to control your ______________

Expected net worth

_________________ = 1/10th of age x income

wasteful

a lifestyle marked by lavish spending and hyper-consumption

Congressional Medal of Taxation and Consumption

a new medal for the type of patriotism for spending all of their money

frugal

behavior characterized by or reflecting economy in the use of resources

income tax

the single largest annual expenditure for most households