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Consider the level of car-purchasing knowledge Dr. South has recently acquired that will never pay capital gains or real dividends or enhance the productivity of his business. He now has knowledge about every Porsche dealer within a four hundred-mile radius of his home. Dr. South also can tell you immediately the dealer's cost on nearly every Porsche model, the cost of options and accessories, and the performance characteristics of most mod..
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Thomas J. Stanley |
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It is unfortunate that some people judge others by their choice in foods, beverages, suits, watches, motor vehicles, and such. To them, superior people have excellent tastes in consumer goods. But it is easier to purchase products that denote superiority than to be actually superior in economic achievement. Allocating time and money in the pursuit of looking superior often has a predictable outcome: inferior economic achievement.
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Thomas J. Stanley |
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The majority either ignore their critics or use criticism as an inspiration to succeed.
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Thomas J. Stanley |
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Wealth is not the same as income. If you make a good income each year and spend it all, you are not getting wealthier. You are just living high.
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Thomas J. Stanley |
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aff08ee
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90,000, she's worth more than twenty times that amount. And she is in control of her household's domestic spending. Robert and Judy, on the other hand, are frightened. And they should be. This couple earns $200,000 annually, or more than twice what Mrs. Rule earns. Yet, like so many of today's high-income-producing couples, Robert and Judy have only a fraction of Mrs. Rule's wealth. They feel that consumption controls them, not the other wa..
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Thomas J. Stanley |
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Mr. Friend never really enjoys his life. He owns a lot of upscale things, yet he works so hard and for so many hours during a typical day that he has no time to enjoy them. He has no time for his family, either. He leaves his house each day before dawn and rarely returns home in time for dinner. Would you like to be Mr. Friend? His lifestyle is appealing to many people. But if these people really understood Mr. Friend's inner workings, they..
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Thomas J. Stanley |
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Unfortunately, most Americans think that they are emulating the rich by immediately consuming any upward swing in their cash flow.
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Thomas J. Stanley |
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millionaire has told me that true diversity has much to do with controlling one's investments; no one can control the stock market. But you can, for example, control your own business, private investments, and money you lend to private parties. Not at any time during the past thirty years have I found that the typical millionaire had more than 30 percent of his wealth invested in publicly traded stocks. More often it is in the low-to-mid-20..
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Thomas J. Stanley |
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8a206bc
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Wealth is not the same as income.
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Thomas J. Stanley |
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Once you're in a high-income bracket, say $100,000 or $200,000 or more, it matters less how much more you make than what you do with what you already have.
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Thomas J. Stanley |
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97559fe
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After twenty years of studying millionaires across a wide spectrum of industries, we have concluded that the character of the business owner is more important in predicting his level of wealth than the classification of his business. But
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Thomas J. Stanley |
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Luck and risk taking go hand in hand.
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Thomas J. Stanley |
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Most of us want to be wealthy, but most of us do not spend the time, energy, and money required to enhance our chances of realizing this goal.
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Thomas J. Stanley |
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THEIR ADULT CHILDREN ARE ECONOMICALLY SELF-SUFFICIENT.
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Thomas J. Stanley |
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They became millionaires by budgeting and controlling expenses, and they maintain their affluent status the same way. Sometimes
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Thomas J. Stanley |
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QUESTION 2: DO YOU KNOW HOW MUCH YOUR FAMILY SPENDS EACH YEAR FOR FOOD, CLOTHING, AND SHELTER? Almost two-thirds of the millionaires surveyed (62.4 percent) answered "yes" to this question." --
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Thomas J. Stanley |
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What is to be learned from this case scenario? Choose a financial advisor who is endorsed by an enlightened accountant and/or his clients with investment portfolios that in the long run outpace the market. If you don't have an accountant, hire one. Another
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Thomas J. Stanley |
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The median (typical) household in America has a net worth of less than $15,000, excluding home equity. Factor out equity in motor vehicles, furniture, and such, and guess what? More often than not the household has zero financial assets, such as stocks and bonds. How long could the average American household survive economically without a monthly check from an employer? Perhaps a month or two in most cases. Even those in the top quintile ar..
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Thomas J. Stanley |
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During the year we interviewed him, Dr. South spent more than $70,000 for his most recent motor vehicle purchase, related sales tax, and insurance. Yet for the same period, how much did he place in his pension plan? About $5,700! In other words, only about $1 in every $125 of his income was set aside for retirement. The amount of time Dr. South took to find the best deal on his car was also counterproductive. We estimated that it took him m..
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Thomas J. Stanley |
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America is still the land of opportunity. Over the past thirty years I have consistently found that 80 to 85 percent of millionaires are self-made.
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Thomas J. Stanley |
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Nearly all (95 percent) of the millionaires we surveyed own stocks; most have 20 percent or more of their wealth in publicly traded stocks.
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Thomas J. Stanley |
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Nearly all (95 percent) of the millionaires we surveyed own stocks; most have 20 percent or more of their wealth in publicly traded stocks. Yet you would be wrong to assume that these millionaires actively trade their stocks. Most don't follow the ups and downs of the market day by day. Most don't call their stock brokers each morning to ask how the London market did. Most don't trade stocks in response to daily headlines in the financial m..
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Thomas J. Stanley |
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Forbes lists several top-performing small businesses that have had great endurance for the past ten years. Some of the industries represented include wallboard manufacturing, building material manufacturing, electronics stores, prefab housing, and automobile parts. No, these industries don't sound very exciting. But typically it's these mundane categories of businesses that produce wealth for their owners. Often dull-normal industries don't..
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Thomas J. Stanley |
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Interestingly, self-employed people make up less than 20 percent of the workers in America but account for two-thirds of the millionaires.
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Thomas J. Stanley |
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What are the implications of our findings? It's easier to accumulate wealth if you don't live in a high-status neighborhood.
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Thomas J. Stanley |
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What you probably don't know is that your neighbor in the $300,000 house next to yours bought his house only after he became wealthy. You bought yours in anticipation of becoming wealthy. That day may never come. Each
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Thomas J. Stanley |
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a9a3172
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Multiply your age times your realized pretax annual household income from all sources except inheritances. Divide by ten. This, less any inherited wealth, is what your net worth should be. For
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Thomas J. Stanley |
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76864a9
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Why aren't you as wealthy as you should be? It may be because of the way you operate your household. Would a business, especially a very productive one, ever hire a key employee without doing a serious background check and an in-depth interview? No! Yet most people, even those with high incomes, hire financial advisors after obtaining little or no background information about these "employment candidates." Some"
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Thomas J. Stanley |
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I have always been goal-oriented. I have a clearly defined set of daily goals, weekly goals, monthly goals, annual goals, and lifetime goals. I even have goals to go to the bathroom. I always tell our young executives that they must have goals.
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Thomas J. Stanley |
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To many successful, achievement-oriented children of the affluent, accumulating money is not the superordinate goal. Instead, they want to be well educated, to be respected by their peers, and to occupy a high-status position. For
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Thomas J. Stanley |
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The advertising industry and Hollywood have done a wonderful job conditioning us to believe that wealth and hyperconsumption go hand in hand.
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Thomas J. Stanley |
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It is easier to purchase products that denote superiority than to actually be superior in economic achievement.
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Thomas J. Stanley |
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Most people who become millionaires have confidence in their own abilities. They do not spend time worrying about whether or not their parents were wealthy. They do not believe that one must be born wealthy.
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Thomas J. Stanley |
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Mr. Denzi can teach us all something about accumulating wealth. Begin earning and investing early in your adult life. That will enable you to outpace the wealth accumulation levels of even the so-called gifted kids from your high school class. Remember, wealth is blind.
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Thomas J. Stanley |
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Courage can be developed. But it cannot be nurtured in an environment that eliminates all risks, all difficulty, all dangers.
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Thomas J. Stanley |
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Victor wants his children to have a better life. He encourages them to spend many years in college. Victor wants his children to become physicians, lawyers, accountants, executives, and so on. But in so encouraging them, Victor essentially discourages his children from becoming entrepreneurs.
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Thomas J. Stanley |
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I am my favorite charity." "WEALTHY"
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Thomas J. Stanley |
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Although millionaires have much more experience in making investment decisions, they allocate significantly more hours than do nonmillionaires in an effort to become even better investors. That is one of the main reasons that millionaires remain wealthy. Business
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Thomas J. Stanley |
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In our most recent national survey of millionaires, we asked the respondents to designate their country of origin/ancestry/ethnic origin. The results may surprise you. TABLE
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Thomas J. Stanley |
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HOW TO DETERMINE IF YOU'RE WEALTHY Whatever your age, whatever your income, how much should you be worth right now? From years of surveying various high-income/ high-net worth people, we have developed several multivariate-based wealth equations. A simple rule of thumb, however, is more than adequate in computing one's expected net worth. Multiply your age times your realized pretax annual household income from all sources except inheritanc..
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Thomas J. Stanley |
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being well educated has certain economic drawbacks. Victor's
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Thomas J. Stanley |
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Have you ever noticed those people whom you see jogging day after day? They are the ones who seem not to need to jog. But that's why they are fit. Those who are wealthy work at staying financially fit. But those who are not financially fit do little to change their status. Most
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Thomas J. Stanley |
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Current Model Year Ford Explorer Limited 4X4Ivory
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Thomas J. Stanley |
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In general, the longer the average member of an ancestry group has been in America, the more likely he or she will become fully socialized to our high-consumption lifestyle. There is another reason. First-generation Americans tend to be self-employed. Self-employment is a major positive correlate of wealth. TABLE
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Thomas J. Stanley |