Stop Acting Rich continued

Stop Acting Rich continued

April 07, 2017
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I am continuing to read through Dr. Thomas J. Stanley's book, Stop Acting Rich.  It has been such a fascinating read thus far.  Here are some additional nuggets I have gleaned from his book.

"Annual income is nowhere near a perfect predictor of wealth.  It is not how much one earns annually that counts:  It is how one lives each year", says Thomas J. Stanley. (page 71 Stop Acting Rich, Thomas J. Stanley) For most folks wealth building is a long distance race rather than a sprint.  It is sustained focused effort over years and years of frugality and wise investing that builds wealth.

Stanley says, "Why is it that most of the neighbors of millionaires are not rich?  They are living well beyond their means.  They try to emulate the consumption habits of their rich neighbors, especially those BA's (balance sheet affluent), who are able to live comfortably on 80% of their household's income.  They earn more and accumulate more than most of their neighbors.  They have no difficulty buying a new Toyota, for example, every four years." (page 76 Stop Acting Rich, Thomas J. Stanley) What happens is that their not so affluent neighbors imitate their car buying decisions and can barely afford to make the loan payments.  These people are acting rich though they do not have the assets to back it up.

So how do the wealthy become balance sheet/asset affliuent rather than being only income affluent?  They live and buy as if their income was 80% of what they actually bring in each month.  The rest of the 20% they save and invest.  Some millionaires who are effective in moving income into wealth building often drive vehicles well below their means.  Ouch!  Those words hurt.  

Maybe it is time to review your assets.  How are they allocated?  Are you positioned for wealth building?  Do you have a plan of attack?  I would enjoy meeting with you for a complementary meeting.  

Interested?  Download our form here and contact us today!

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