Wednesday, May 19, 2010

Income vs. Wealth


I would encourage everyone to read The Millionaire Next Door. It has been out for awhile and the information it provides is invaluable for those who want to accumulate wealth. Most of us have the wrong profile of what it takes to be a millionaire. We even think some folks are wealthy when in fact they are NOT. Even more interesting, we think some folks are not wealthy when in fact they ARE. Having a great salary or income does not necessarily lead to wealth. It all depends upon your spending and saving habits.

So many more of us could accumulate the wealth we desire if we took note of our buying behavior and its impact upon our success in this area. For example, how much is the "pride" of having a current model car worth? If you could get the make and model of the car you want but not new, maybe 3 or 4 years old and the same car new for an additional, say $5,000, $10,000, $20,000, would you? Even if you could, why? This is one example of the many buying habits we could reevaluate on our way to being wealthy. The book has many more worth your perusal.

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