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Lots of Wealth, Lots of Discipline

Posted on May 21st, 2013

As stated in The Millionaire Mind, a distinguished scholar told me just before I graduated: If you don't publish you may not get tenure at a good school.  But you will have a lot of friends.  Publish a lot and you will not be real popular among your colleagues. I was reminded of this when I received an email from Dr. F.O., formerly a college professor:  . . . read The Millionaire Mind. . . just a few years after I resigned a full professor position at the university to begin my own . . . business.  . . . I was 51 years old...

Fantasies of Wealth; Misinterpreting the Data

Posted on May 14th, 2013

A couple recently asked me about the relationship between home ownership and net worth. They are contemplating buying their first home.  "In your books, Tom, you mention that nearly all millionaires are homeowners . . . approximately 95%."  Most homeowners, however, are not millionaires.  And no one is going to hand you a check for seven figures when you close on your first home.  However, there is some correlation between home ownership and net worth.  According to government statistics, the median household net worth for renters has hovered around the $4,000 to $5,000 level during the last 15 years.  For the same period, the median net worth for homeowners has...

Pastor and His Wife, A Teacher, on Building Character and Wealth

Posted on April 1st, 2013

My wife (public school teacher) and I (pastor) have become millionaires (yes, without even figuring equity in our home) in our mid-late 40s while being salaried workers and with her taking nine years off from teaching/salary to stay at home with kids. We've had no inheritance or windfall. Moreover, we have consistently given about 20% of our income back to our church. We have simply delayed gratification by consistently living on less than we make while contributing heavily to...

Car Buying from The Millionaire Next Door

Posted on March 26th, 2013

Toyota did very well on my acid test, i.e. the home cooking index.  I learned about the acid test from millionaires whom I interviewed.  Before buying my first Toyota 17 years ago, I did a lot of research.  Plus I drove through the employee parking lots of several Toyota dealerships.  I found that nearly all the employees drove, you guessed it, Toyotas.  Sure, employees have incentives to consume "home cooking."  They get discounts.  But not all dealers of brands X, Y and Z cars have their employee parking lots filled with the home team brands.  Not eating one's own home cooking...

A Billionaire's Office Next Door

Posted on January 8th, 2013

Recently Huff Post published a list of the top 10 most expensive office rental rates by city.  It also listed the top ten least expensive rental rates.  New York City (5th Avenue) ranked 2nd along the most expensive dimension at $97 per square foot.  Omaha, Nebraska (less costly than hundreds of other cities) ranked 7th on "the least expensive" list at $15.23 per square foot.  In terms of rank, the positions of these two office environments have not changed much over the years. New York City is considered to be the center of the investment industry in this country.  They...