Millionaire Next Door Reflection

Despite the importance of finance, accounting, and consumer intelligence, these topics are typically neglected in high schools. Unfortunately, personal finance is often learned by trial and error. The problem with this method of learning is that it only takes one costly financial mishap to set you back for years. This is why I created a basic personal finance book for total beginners. With these concepts you can use the other books in the Smart Money series to further build your knowledge of personal finance topics.

The author of this book, Dave Ramsey, is a man who has gone through many struggles in his life. Throughout his book he talks about the times when he went bankrupt and couldn’t provide for his family. Dave Ramsey sat down and wrote a plan on how to be smart with your money. Ramsey says, “The principles are not mine. I stole them all from God and your grandmother” (xi). He talks about how these are not new ideas and that these are not theories because they are proven to work every single time. The central concept of this book is to help people succeed in life with money but also their personal relationships. Ramsey wants to give people hope and happiness by playing a small role in their financial freedom.

Have you ever felt like the place you belonged to didn’t belong to you? In The House on Mango Street, this is how the main character, Esperanza, felt. The author, Sandra Cisneros, did a good job in portraying a girl who couldn’t find her place. She had a problem accepting where she was from, The House on Mango Street is heartfelt novel and is great to pass the time. In this story, you will be shown the lives of Esperanza, her sister Nenny, their two best friends Rachel and Lucy, and the many people who lived on Mango Street. This book is about a girl who went from denying her place to accepting it.

As a million dollars passes through your hands, Foster teaches us on how to hold onto the money we’ve earned. Many consider money to be a good thing, but when people start believing that quantity overrides quality, money can lead you to the wrong reasons. He’s gotten to know some of the most successful people in the world during his lifetime, and every single one of them started out learning what do with the money they’ve earned with a part-time job. “They also learned how tough it is to earn each and every dollar, so they were careful about how they spent their money. These successful people developed good spending habits when they were young that stayed with them throughout their careers,” (pg 22). In my future, I plan to get a job and save at least half of my

They allocate their time, energy, and money efficiently, in ways conducive to building wealth. Millionaires budget and also plan their investments. They begin earning and investing early in life. The authors note that “there is an inverse relationship between the time spent purchasing luxury items such as cars and clothes and the time spent planning one’s financial future”. In other words, the more time someone spends buying things

Whew, where to start? The personal finance class through Dame Ramsey’s Foundations in Personal Finance textbook and video series really had a lot of useful information, and it is hard to pick out the most impactful chapters and topics. However, I think the most important stuff for me was his five foundations for financial success, which were reinforced throughout the course. I am not downplaying the other important stuff in the course, including learning about the history of credit, budgeting, consumer awareness, investing, insurance, and taxes, but I think that mastering the fundamentals is important, which is why I am choosing to highlight them in this paper.

In David Bach’s book The Automatic Millionaire, he reveals to readers a plan that could help them prosper in life financially and retire early without any financial stress. In the first chapter of his book his introduces to us the McIntyres, a normal married couple looking to retire early. After talking to the couple, Bach discovers that this is no regular couple financially. He finds out that this couple owns two homes without any mortgages, have absolutely no debt and have a net worth of almost two million dollars. He then investigates why this is so. He finds that the McIntyres have some guidelines that help them. They have goals instead of budgets, they pay themselves first, watch their latte factor or spending and make their savings automatic.

7 How can someone build wealth? Make a list of stuff that you have. Buy more stuff that makes money instead of stuff that loses

America is recognized as a place where if you work hard enough you can become wealthy. In fact, the U.S. has more millionaires than any other country in the world. However, for all that prosperity, the gap between rich and poor has always been large. People have been attempting to fix this inequality for over a century now. Andrew Carnegie, a Scottish immigrant who became the second richest man in America by dominating the steel industry, and Terence V. Powderly, an American attorney, labor union leader, politician, and best known as head of the Knights of Labor, were among the first to propose solutions. Carnegie’s idea, called “The Gospel of Wealth,”

One big lesson that I feel more people in my generation need to learn is how crucial saving is. One might think "oh I can save later," but you never know when something can happen. I found this out myself when my home was flooded. We lost most of our possessions and can't afford to replace them because we never put the money aside. Had we all put in a bit of money here and there, we would not need to struggle to repair our home. When it comes to saving money sooner is always better than

In this book, it is well-defined that the starting point (verge) of being wealthy is possessing a net value of $1,000,000 or even more. Centered on this description, only 3.5 million (3.5 percent) of 100 million families in America are referred to as wealthy. Roughly 95% of millionaires in America have a net worth between $1,000,000 and $10,000,000. A large quantity of the discussion in this book centers on this section of the population. This group is being focused on because this level of wealth can be achieved in one generation and by many Americans.

The Millionaire Next Door is insightful book for those wanting to understand how your money works for you. This being said, Thomas J. Stanley did a splendid job ensuring that you get his main points accessed on how people who are millionaires stay millionaires, these points include living below your income, manage your time and money efficiently, living independently is more important than showing high social status, not relying on your parents for money, having children who are self-sufficient, and choosing the right occupation. From these points the most the top three most valuable in my opinion are living below your income, manage your time and money efficiently, living independently is more important than showing high social status, having children who are self-sufficient, this is technically four but I believe that if you are going to live below your income you are going to have to manage your time and money efficiently, thus, in my opinion putting them as one point.

The authors place the millionaires interviewed for their research into three categories: prodigious accumulators of wealth (PAW), average accumulators of wealth (AAW), and under accumulators of wealth (UAW). To find which category to place each individual, they set out to determine expected net worth. This was computed by multiplying age times realized pretax annual household income from

This relates to different matters. First of all, the kids of wealthy parents, should not depend on their parent’s money, and they should learn how to become independent on their own. This applies to common people like me as well, in that we should not rely on someone to bail us out, like our parents, and that way we can control where our money comes and goes. Being rich is one thing, staying rich is a totally different category from what I learned in this book. Knowing what is more important to you is also part being disciplined, because that way you will not spend money on worthless items like so many people with high incomes do, and they end up not accumulating

How do wealthy people succeed? In short, they are programmed for it. My realization is this. Its not your surroundings but what's inside you that causes success. My conclusion is this. Its not the tools, it's the person that determines how successful they will be.