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The millionaire next door   goals - thomas stanley
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The millionaire next door goals - thomas stanley


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  • 1. Daily Weekly That was not offered at a discount or a special price Never bought a suit Do you have a clearly defined set of GOALS? Monthly Still well dressed Wealthy person example Frugal lifestyle Annual Not at full price Purchases quality clothing Lifetime Take advantage of investment opportunities Always be goal-oriented Most millionaires Goal-oriented After funding their high-consumption lifestyles Have little money left over Many people who live in luxury Importance of Setting Goals High-income Plan Non-goal oriented types Inherited-wealth Goals Akin to operating a business without Operating a household without a budget Happier than those in their same income/age cohort Who are not financially secure Direction Better able to visualize Future benefits of defining their goals Resource that should never be squandered Money Financially independent people Grandchildren graduating from college Planning Luxury lifestyle Example - Visualizes Their success after college Budgeting Essential parts of building wealth Food Being frugal Wealthy people Do you know how much your family spends each year on Clothing If they intend to become financially independent Must live below their means Even high-income producers ShelterWorrying about your socioeconomic future Spend an increasing amount of your time and energy If youre not financially independent 2/3 of millionaires know High-income-producing nonmillionaires Only 35% know Invest at least 1/3 of their pretax household income each year Have a budget Smart way Financial Awareness Become financially independent Difficult to accumulate wealth when one is in school Their goal Millionaires see things differently Domestic consumption Directly related to achieving this goal Producing an income The longer one postpones The longer one stays in school Have $5 million By the time you and your significant other retire Building wealth Education The Millionaire Next Door - Goals - Financial Future - Lifestyle - Helps control consumption The greater the opportunity to accumulate wealth The earlier one starts investing ones income Thomas Stanley Tabulating Most experts on wealth agree Reduces allocating too many $ to product and services Categories that are not really important Enable you to outpace wealth accumulation Begin earning and investing early in your adult life Do you spend a lot of time planning your financial future? Most millionaires do Financial independence Does not automatically translate into Being a well-educated, high-income earner Studying Planning Takes Financial future Millionaires spend significantly more hours per month Planning their future investment decisions Sacrifice Managing their current investments Only after he became wealthy Buying a house Too many high-income/low-net worth types Live from paycheck to paycheck Fearing a sudden downturn in our economy In anticipation of becoming wealthy Financial independence The more they spend The more income they must realize More than twice your households Requires a mortgage Never purchase a home If youre not yet wealthy but want to be someday Know total annual realized income The more they realize The more they must allocate for income taxes Time Minimize your realized (taxable) income Important rule To build wealth Energy Millionaires Maximize your unrealized income Wealth/capital appreciation without a cash flow People who become wealthy allocate their Money By their net worth In ways consistent with enhancing their net worth Measure their success Not by their realized income For the purposes of wealth building Income doesnt matter that much Ivan Staroversky -