Wedding Bells, BMWs and Minivans!Posted on June 2nd, 2011
I recently received an inquiry from "Bill": One topic I'd like to see Dr. Stanley blog about sometime is in marriage situations where one spouse comes as a balance-sheet affluent and the other is income affluent. I'll be married in a few months and we'll be in that situation. I'm an engineer, she's a lawyer, I have a beatup Camry, she has a BMW, I rave about Dr. Stanley, she tells me to stop quoting him :) . . . . We love each other and are upfront about finances, but I'm wondering if there's data indicating whether the combined couple ends up...
A Cheap DatePosted on May 5th, 2011
When people ask me about the activities of millionaires, I have a short answer. As I wrote in The Millionaire Mind, the typical millionaire is, in three words, "a cheap date!" Yes, a cheap date even among a fraction of the top 1% of the wealth holders in America. Many of the favorite activities of millionaires are not at all costly. It matters not if you are rich or poor, the best things in life are free or close to it. I was reminded of the "cheap date" concept when I read a recent e-mail from a self employed multimillionaire...
Subsidized Housing for MillionairesPosted on March 29th, 2011
The income statement affluent (high income/low net worth) often subsidize the balance sheet affluent, aka the millionaire next door. Many of the income statement affluent paid top dollar for their homes at the peak of the residential real estate market. Often they did so with little or nothing down. Now these same houses are selling at steep discounts. Interestingly, during the 10 year period prior to the meltdown in the residential real estate market, fully 53% of the millionaire next door types did not move even one time; 24% moved only once during that period. Now, according to an article in The Wall Street Journal, "Nationally 28%...
Forever Balance Sheet AffluentPosted on February 15th, 2011
People often ask me if the consumption lifestyle of their children or grandchildren will change radically if they receive a sizeable inheritance. If a child is raised in a family environment which reflects the habits of the millionaire next door, he or she typically adopts the same lifestyle. Statistically a frugal 21-year-old will continue to be frugal throughout his lifetime. Two case examples will illustrate my point. Recently, Ted returned a completed questionnaire which was part of my national survey. He wrote the following: "Please note . . . my responses may be atypical because of a recent inheritance much larger than anticipated. " Ted, in...
A Doctor in NeedPosted on October 7th, 2010
I recently received an e-mail from a physician of the Income Statement Affluent variety (high income/low net worth). In it he laments about the difficulty in transforming himself into a Balance Sheet Affluent millionaire. I have all the basics to live frugally; I just have not done so because I have been caught up with my status. Until your latest book, Stop Acting Rich, which is my 3rd installment, clearly I must have forgotten from reading The Millionaire Next Door and The Millionaire Mind. He wants to know how he can invest his money to the fullest, what cars he should...
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