Millionaire Next Door (things to do to get rich)

PAW, AAW, UAW Formula

(Current Age x Current Income) / 10

Non-Beneficiary Estate Executor

7 out of 10 have named one.

Marry the Right Person

84% said the most important thing was marrying the right person.

Inconspicuous Lifestyle

Don't spend lavishly on stuff you don't need.

Education Income Accumulation

Higher Education = Higher Income = Lower Accumulation.

Budget

Intense focus on where money is spent, Millionaires fastidious budgeters.

Investment Rules

Invest for the long term, familiarity with company/industry, dull/normal investments.

Shopping

Millionaires are not fastidious shoppers. They generally don't know where to find a "good deal"

Joy of Prudence and Frugality

Millionaires don't believe they are delaying gratification, they actually take pleasure in saving and investing.

Divorce Rate

Millionaires get divorced at half the national average rate.

How Much to Save

Millionaires save about 20% average, at least 15%, and 10% is sufficient for the young.

Spouse Significance

Money at the root of 87% of divorces today.

Working Spouse

Most millionaires spouses don't work.

Income vs. Net Worth

Net Worth = Financial Assets (Increase in value) - Liabilities

PAW vs UAW

PAW - Prodigious accumulator of wealth UAW - Under accumulator of wealth

Purchasing habits

Rarely buy brand names, "can't get my wife to spend any money."

In-Law Conflicts

Stay out of conflicts with their in-laws.

Monthly payments

To pay is a curse, to receive is a Million Dollar Choice.

Better Than My Life Syndrome

When you buy and spend like you are really rich, wasting a ton of money, to give off the aura of wealth.

Mentor

You need to have someone that you can report to and talk to, someone who is your mentor (especially financially). Preferably someone who is a tax adviser.

Modest House

a "starter home" in a middle class neighborhood.

Economic Outpatient Care

less than 2.5% of millionaires received more than 10,000$ in gifts. More than 50% never received educational financial assistance from any relative.