How will you spend your time, emotions, and brainpower in the new year? From becoming emotionally involved in politics to the drama in what neighbors are buying, my father recognized that distractions could be a key source of why many struggle to become financially independent or achieve other goals. He gave us this advice on financial fitness last January: […]
Spending Non-Financial Resources Read More »
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,
Wedding Bells, BMWs and Minivans! Read More »
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
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.
Subsidized Housing for Millionaires Read More »
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
Forever Balance Sheet Affluent Read More »
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
Harry and his wife are among members of the Balance Sheet Affluent crowd. Even so, Harry never expected that one day his daughter would dramatically change her retail clothing store patronage habits. His daughter, a college freshman, was home from school one weekend. On Saturday, Harry asked her if she would help him deliver a carload of give aways
An Unexpected Lesson in Frugality Read More »
In my last blog, Stop Acting Rich: Good Advice from a Frugal Engineer, I mentioned that even some decamillionaires (9%) mow their own lawns. Most do so because they enjoy doing it. Plus it is good exercise. But there can be certain drawbacks associated with mowing grass. Such visual do-it-yourself activities and behaviors are often
Stop Acting Rich: Do-It-Yourself Read More »
In an earlier blog, I mentioned that the typical Balance Sheet Affluent (millionaires) had an annual realized household income of $89,167 (median) when he first became a millionaire ($1 Million: Something or Nothing? Part I, and Stop Acting Rich, pp. 17-29). In other words, one half of the BAs had incomes that were less than this figure. What
A Millionaire on Less than $60K Read More »
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 II) Read More »