Good Reading

I (Amanda) recently finished reading, "The Millionaire Next Store" by Danko & Stanley, two researchers. Scott, and Scott's brother, Dennis & his wife, Summer have all read the book. I am not usually a financial book kind of girl, but my hubby's interest has encouraged me tobe more open with my reading.

The authors surveyed many people with wealth (not just high incomes) and found that many/most millionaires are actually very frugal people. (Good news for those of us without a Dr's salary or a trust fund.) These millionaires live in average neighborhoods and live well below their means. They invest and accumulate wealth. They do not live a high consumption lifestyle trying to impress the (broke) Jones'. They are conservative in their spending.

However, the book surveys many people with high incomes who are actually going broke. Their country club memberships, private school tuition, brand new luxury cars, designer clothes etc. are breaking them and they don't have money left over to invest. Many high income earners do not accumulate wealth because they are trying to "look the part" of an affluent family.

Check it out. You'll be surprised and intrigued by their findings.