We all have our perceptions of what rich people are like.
Many of us don’t know many millionaires. Television shows and celebrity news skew our ideas of them.
Dr. Thomas J. Stanley and Dr. William D. Danko set out to find out who the affluent in America are. They compiled their empirical findings in The Millionaire Next Door. In the book, you will discover who America’s top 1% are, and they aren’t who you think.
There are Under Accumulators of Wealth (UAWs) and Prodigious Accumulators of Wealth (PAWs).
UAWs tend to spend more than they make or save too little. They are what I like to call “fake rich people.” They drive expensive sports cars, live in mansions, and spend big at clubs on the weekend. But once their source of income dries up, they go bankrupt.
But PAWs tend to live modestly and save a lot of money. They make their first million dollars, then continue growing their money. They look like regular people because they don’t flaunt their wealth. They could be your neighbors.
Are you a UAW or a PAW? The book has a simple formula for finding out.
One of the best shortcuts to any goal is to study people who have already achieved the goal. Emulate the millionaires, and you will someday become one. Once you know who the millionaires are, you can make an action plan to change your life in that direction.
If you have any desire to some day become affluent, you should read The Millionaire Next Door.
Disclosure: Links to Amazon.com are affiliate links.