In an earlier blog I revealed that only 10.5% of the variation in the price paid for a motor vehicle is explained by net worth. Later a reader asked about the relationship between the income and net worth characteristics among the 1,340 respondents from that study. Only 24% of the variation in net worth was explained by income. …
Several people have commented that Osama bin Laden’s choice of home was akin to that of the millionaire next door types who blend in well with their neighbors. Others said that living in a million dollar compound in a third world country was anything but analogous to the low profile existence of the American millionaires …
Webster’s defines cynical as “inclined to question the sincerity and goodness of people’s motives and actions.” I received an e-mail in which Will writes: . . . having a hard time not being cynical about people based on where they live or what types of car they drive. We go to a church that is …
Some of the assets that you own are priceless. So it is with my very best friend, Lily, 72 pounds of Golden Retriever joy. Every morning after breakfast she begins herding me and pointing me towards the door. Lily takes me for a long walk every day. She is always cheerful and more than willing to …
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” …
Manhattan, Palo Alto . . . Consider the Cost of Living! Read More »
In a recent blog, I stated that “wealth and life expectancy are significantly correlated. Even among millionaires, those with multiple millions tend to live longer than those with just one million. My surveys and estate data from the IRS consistently show that rich people live longer than those in the general population.” Then I asked the …
In The Millionaire Mind, I mentioned that the millionaire population contains a disproportionately high concentration of people who told me that integrity is a critical factor in explaining their economic success. “Being honest with all people” was tied [with being well disciplined] for first in regard to the percentage of millionaires who rated it as …
In Stop Acting Rich, I detailed why so many people who are not rich hyperspend. Who are they really emulating? They are merely mimicking the behaviors of people like themselves who are not rich but act in ways they think economically succesful people act. Here is an example of what I mean. Theo is the owner …
In Stop Acting Rich, I stated that “the greatest detriment to building wealth is our home/neighborhood environment. If you live in a pricey home and neighborhood, you will act and buy like your neighbors. . . the more affluent the neighborhood the more its residents spend on almost every conceivable product and service. We take …
What Percent of Your Neighbors Inherited Their Wealth? Read More »
The topic of income inequality is a popular one. It is true that the bottom one-fifth of “income producing” households in America is accounting for a smaller and smaller percentage of the total income. Also, the top one-fifth continues to account for an increasing proportion of the income pie. How can it be that as the …