More handpicked essays just for you.
Financial planning summary
Financial planning process essay
Financial planning and implementing applications
Don’t take our word for it - see why 10 million students trust us with their essay needs.
Thomas J. Stanley, Ph.D. and William D. Danko, Ph.D. wrote The Millionaire Next Door, which is a highly informative book about what it takes to become wealthy. Some of the information I knew, such as the obvious fact that you need money to be a millionaire, but some information, such as millionaires not owning big luxury items, surprised me. People become wealthy by saving money, not by living in a huge house or driving an expensive car. Most households generate a lot of money, but, because people love buying things, they live from paycheck to paycheck. Stanley and Danko say, “Building wealth requires discipline, sacrifice, and hard work” (5). There are not too many millionaires because people are not willing to change their lifestyles to accumulate …show more content…
They do not wear expensive suits or live in a big house. Those who had a lot of money but spent it all on big, luxury items are called UAWs. A UAW is an “under accumulator of wealth” (Stanley and Danko 14). A good example of a UAW is the Great Gatsby. Gatsby owned a big house with a big pool. He invited hundreds of people over for parties every weekend. He drove a Rolls-Royce type of fancy car. Gatsby had hundreds of shirts, most of which probably had never been worn that cost thousands of dollars. On the other hand, a millionaire is a PAW, which is an “accumulator of wealth” (Stanley and Danko …show more content…
Most millionaires have worked 45-55 hours per week throughout their life, and are now retired with money. Half of the millionaires have wives that stay home to cook, clean, and care for the children. Most are first-generation and own a house. These facts surprised me. I thought in order to be wealthy, it meant being young and only working 40 hours per week. I thought male millionaires had wives that were bringing in a second income to help accumulate wealth. I figured most millionaires owned a house, but I thought they lived in big houses in “rich” neighborhoods, not a regular house. I thought that someone was born wealthy and then that wealth just was passed down generation to generation. If you ask what an average person thinks of when they hear the word wealthy, they will describe someone who owns many luxury goods. However, after reading The Millionaire Next Door, I learned that millionaires are happier saving their money than spending
The article “Luxury Shame,” written by Johnnie Roberts describes how and why the rich are scaling back on their extravagant expenditures. Initially, I was annoyed and shocked at how the very rich were assimilating their unfamiliar experiences of “recessionary times,” with those that experienced the emotions of poverty. Roberts explains the ostentatious life of multimillionaire Michael Hirtenstein, who would routinely and openly show off his profitable real estate collection. After the economy took a turbulent downfall, Hirstenstein and other wealthy Americans began to feel the shame or embarrassment of flaunting their wealth. Despite the “halt” to the economy, Hirstenstein became frugal with his money, even though he could have easily bought whatever he wanted.
Carnegie opens his essay with the statement that there are three main ways most wealthy people use or distribute their money. First, some pass their money on to the next generation. Children...
Some people believe that if you work hard, get an education, and stay focused you will be able to be successful and fulfill all your dreams. Others believe that only if you are born into a family of money will you be able to be wealthy. Both thoughts have some flaws in their description. For example, just because you always work hard and get an education does not mean some life event might happen that can cause some setbacks. Also, just because you are born into a wealthy family does not mean you are smart enough to keep the wealth. Social Darwinism and The Gospel of Wealth explain these thoughts more. There are some similarities but many more differences between the two theories.
The movie Born Rich at first seems like a kid who wants to overcome the “voodoo of inherited wealth” (Born rich, 4:24). Jamie Johnson the heir to the Johnson & Johnson fortune is intent on getting his inner circle of friends to address this controversial issue. From the beginning of the movie there seems to be an unwritten rule that it’s in bad taste to discuss your wealth. This point seems funny that those with money don’t want to talk about their wealth, while those without money only talk about having wealth. As reluctant as they say they are, it seems that they are more than willing to babel on about it and the privilege that accompanies it throughout the movie which seems hypocritical. These kids, seems to range from very grounded to on the verge of paranoia about their money. However when you look at the range of problems, insecurities and unhappiness that exists among these kids it’s easy to say money doesn’t solve your problems.
In the first four chapters of The Automatic Millionaire, David Bach recounts his experience with the McIntyres, the first couple to become automatic millionaires. While most people think that becoming a millionaire requires strenuous planning, a six figure income, or an inheritance, Bach shows how easily an average middleclass person can amass wealth. Bach goes onto explain how anyone can gain financial independence and accumulate millions of dollars by setting aside small amounts of money daily.
The Millionaire Next Door written by William Danko and Thomas J. Stanley illustrates the misconception of high luxury spenders in wealthy neighborhoods are considered wealthy. This clarifies that American’s who drive expensive cars, and live in lavish homes are not millionaires and financially independent. The authors show the typical millionaire are one that is frugal, and disciplined. Their cars are used, and their suits were purchased at a discount. As we read the book from cover to cover are misconceptions start to fade. The typical millionaire is very frugal in all endeavors and finds the best discounts possible. A budget is implemented daily, monthly, and annually for a typical millionaire. They live by the budget and are goal oriented. Living well below their means is crucial for a millionaire, and discovering ways to allocate time and money more efficiently. The typical millionaire next door is different than the majority of America presumes. Let’s first off mention what it is not. The typical millionaire is surprisingly not the individual with the lavish house worth a million dollars, owning multiple expensive cars, a boat, expensive clothes, and ultimately living lavishly. The individual is frugal and often looks for discounts for consumable goods. The book illustrates the typical millionaire in one simple word: frugal. It is shocking to believe that this is true, but it does make sense. To achieve financial independence is inherently more satisfying and important than accumulating wealth. According to the book the majority of these millionaires portray characteristics of being sacrificial, disciplined, persistent and frugal. In the book it states, “Being frugal is the cornerstone of wealth-building. Yet far too often th...
...oice that it is more advantageous to their financial well being to accumulate wealth instead of material belongings. Frugality, planning, living below your means and a smart investment strategy are paramount to accumulating wealth
The technology millionaires are much younger then previous generations of millionaires and thus are removed much earlier one. They find success very easy and can not see why others can’t obtain the same wealth as they have.
People think of the members of the higher levels in terms of what they own and what they have, their possessions. The elite however are not defined only by those who have an abundance because if it were not for their stature they would not have these possessions that people speak of.
In the article, The Gospel of Wealth, written by Andrew Carnegie, he discusses the importance of the new self-made millionaires to practice the philanthropy of improvement. The philanthropy of improvement encompasses advancing an aspect of society by providing opportunities to climb the ladder of opportunity. Carnegie noted the gap between the worker and employer had grown exponentially due to the industrial revolution and believed that it was up to the wealthy to develop methods of improvement. The gap between the worker and employer resulted in no sympathy for each other between the master and apprentice as well as people beginning to lose hope in the ladder of opportunity. Carnegie realized that there was inequality in America and he did not want to fundamentally change it; Carnegie valued the gap of the rich and poor. But, it was the prosperous’ responsibility through the philanthropy of improvement to help the impoverished maximize their human potential because of “the ties of brotherhood” (Carnegie 198) that bound the poor and rich. Carnegie felt the affluent should dedicate time and their surplus wealth while alive to invest in the community. He was against fortune “left to
Dolan, Dan, and Wendy Henry. “Multiple Articles. “Luxury Lifestyles of The Rich And Fabulous. 1997: pages 5-60.
...s bankrupt. They don't seem to realize the possible negative consequences that may result. Yet, the people who do the complaining about what other rich people would do the same thing if they had the money. When looking at the big picture, it is realized that no matter if a person is wealthy or not, they are going to aim to become richer and not think twice about how to do it.
“A fool and his money are soon parted” (Unknown) people who are lucky enough to become suddenly rich will only ruin their life in the long run, either by winning a lottery, having a successful investment, or just claiming an inheritance, with these categories there are same effects: bothering charities, filing for bankruptcy within next five years, and unlasting happiness.
Rich people are the selfish people that only care about their wealth and about their
Almost everybody hopes to be rich. Society believes that only the social status can define the kind of person you are. Majority of