Tag: income statement affluent

Millionaire Rule 1.49

By Thomas J. Stanley on Nov 15th, 2011 in Studying the Wealthy

The original title of The Millionaire Next Door was That’s Why They’re Wealthy. One of the main reasons that they are wealthy is that they live in an easily affordable home.   I have found that when millionaires made their first home purchase, the ratio of the purchase price over their annual household income was just 1.49 [median].  And today they have seven times […]

Wedding Bells, BMWs and Minivans!

By Thomas J. Stanley on Jun 2nd, 2011 in Mentor's Corner

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, […]

Manhattan, Palo Alto . . . Consider the Cost of Living!

By Thomas J. Stanley on Mar 31st, 2011 in Studying the Wealthy

In a recent blog I profiled Ken, a second generation millionaire.  His observations generated numerous responses.  Many of these came from New York and California-based respondents who said essentially that there are no homes in the mid-$300,000 range in their chosen geographic environment.  In fact, the wife of a recently minted medical doctor complained that the couple was “forced” […]

Subsidized Housing for Millionaires

By Thomas J. Stanley on Mar 29th, 2011 in Current Events

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.  […]

A Cultivator of Wealth

By Thomas J. Stanley on Oct 21st, 2010 in Studying the Wealthy

Have you ever wondered about why so many millionaire next door types understate their considerable socioeconomic success?  They don’t have a strong need to display their economic productivity by buying  luxury products and expensive homes.  In a major way, their real achievements are the badges of their success. For example, financial success, especially economic independence, is its own […]

Living Among the Income Statement Affluent

By Thomas J. Stanley on Apr 15th, 2010 in Studying the Wealthy

Daniel wrote an insightful comment about my blog entitled Stop Acting Rich: Do-It-Yourself.  He mentioned a case study from The Millionaire Next Door about a man I had interviewed called Mr. W (see pp. 241-246).    Mr. W was a very wealthy self made entrepreneur who often bought or invested in distressed real estate.  Mr. W detailed an episode that happened to him after […]

$1 Million: Something or Nothing? (Part II)

By Thomas J. Stanley on Dec 10th, 2009 in Studying the Wealthy

Among the millionaire types profiled in Part I, what are some of the occupational groups that tend to have higher wealth indices than the norm? Some of these include: self-employed business owners (non-retail); executives of privately held corporations (see: The Millionaire Next Door); educators (and those married to an educator, see Stop Acting Rich, pp. […]

$1 Million: Something or Nothing? (Part I)

By Thomas J. Stanley on Dec 8th, 2009 in Studying the Wealthy

Recently, Dave Ramsey magnanimously invited me to be a guest on his show. During the interview, Dave asked me about the changes I had noticed among Americans since the recent economic meltdown. One of the changes I mentioned was the precipitous decline in the number of people who advised me that “$1 million (in net worth) – […]

Cars and Homes as Costumes

By Thomas J. Stanley on Oct 29th, 2009 in Current Events

As long as we are headed towards a controlled economy, I would like to add my two cents worth and perhaps a bit of comic relief. We can encourage people to become more fiscally responsible! I suggest that we begin by altering the spending habits of the hyperconsuming/income statement affluent (IA) population. I mentioned on Twitter that […]

Costumes: Not Just for Halloween

By Thomas J. Stanley on Oct 27th, 2009 in Lessons Learned

One of my earlier blogs, The Downside to Understating Your Wealth, apparently hit a chord with many of you. Mrs. Davis, a teacher, told me that her memory was jogged after reading about the Honda driving doctor who couldn’t get into the hospital’s parking lot. Here is her contrasting story on the upside of understating your wealth.  […]