Stephanie Harlow
951284303
HIST 363 – Prof. Pope
26 May 2016
The Millionaire Next Door
The definition of wealth in America has evolved over the past 300 years. In 1996 Thomas Stanley and William Danko published a book based on their 20-year study of how people become wealthy; entitled The Millionaire Next Door: The Surprising Secrets of America’s Wealthy. A key takeaway is that looks can be deceiving and “wealth is not the same as income” (1). The discussion and reflections from the book prove that high net worth individuals think and act inversely to those without money. This essay will discuss how success is defined, the necessary character traits of successful individuals, how a developing person can lead a successful life, the audience
…show more content…
The traits include education, perseverance, hard-work, and self-discipline. The foundation for building wealth starts with being frugal. Someone who makes a good income each year but spends it all is not getting wealthier they are just living a high life and in some cases from paycheck to paycheck without saving. It is important to not only have self-discipline but that your partner have it as well. Stanley and Danko assert that if your partner is materialistic and wishes to lead a high-consumption lifestyle, then the likelihood that you will become wealthy greatly decreases. Education is extremely important for the foundation of building wealth because it provides individuals with the ability to plan, budget, and analyze. Perseverance and hard-work go hand in hand. Both comes from the ability of someone to continue to push toward their dream or move through more difficult times toward their desired goal. In the book, the most dominant concept discussed is self-discipline and how it is essential when it comes to accumulating wealth. In order to accumulate wealth one must not be a materialist who is focused on driving the latest model of a luxury vehicle or wearing the latest
Sklar provides vivid illustrations of the astronomical wealth of America’s richest class. Sklar opens her article with the following fact from the CIA World Factbook, “‘Since 1975, practically all the gains in household income have gone to the top 20 percent of households’” (308). This is a disturbing fact especially for a country that prides itself on equality. A truly equal society would reflect nationwide prosperity throughout all levels. Next, Sklar writes about the Forbes 400, the wealthiest people in America. Sklar states that the minimum net worth to get on the list is $...
With each class comes a certain level in financial standing, the lower class having the lowest income and the upper class having the highest income. According to Mantsios’ “Class in America” the wealthiest one percent of the American population hold thirty-four percent of the total national wealth and while this is going on nearly thirty-seven million Americans across the nation live in unrelenting poverty (Mantsios 284-6). There is a clear difference in the way that these two groups of people live, one is extreme poverty and the other extremely
...at the American culture places economic success at the pinnacle of social desirability, without listing legitimate ways for attaining the desired goal (Merton 672-682). Today, the American Dream no longer reflects the dream Adams had, but instead, the idea that one can only call themselves truly successful if they have become rich, regardless of the way they got there. The American Dream does not guarantee happiness, but rather the pursuit of it, but with the media strongly persuading people that money guarantees happiness, people are encouraged to do whatever it takes, even it means disregarding their morals, so that they achieve ‘success.’ The inability to achieve this goal often leads people to destructive, and ultimately life-threatening criminal behavior as their feelings of anxiety and frustration over this vision of the “American Dream” get the best of them.
According to the book you do not to have a high net worth to reach goals of wealth. The book describes their habits as disciplined. The budget is seen as a way of life, a part of living. For example the expenses almost always never exceed the income and they follow the budget closely. In the text the author mentions that the reason why millionaires maintain affluence and wealth is their budget.
“A Millionaire in Blue Jeans?” One of the most valuable principles is found in the very first chapter. Our authors do a wonderful job at dispelling any delusions we have regarding what a Millionaire looks like. I had long assumed, like many others, that the Millionaires of America were the hyperconsumers and elaborate spenders. In fact, we learn that just the opposite is true. I came to understand that, “Wealth is not the same as income”. (The Millionaire Next Door, p. 1, Stanley & Danko) In many cases, income is not at the forefront of relevancy when determining whether someone will become wealthy. There are several factors involved, but ultimately, if a person spends their entire income, the number value of said income simply doesn’t matter. The old age adage regarding spending less than you make is of much more importance. In the Church, this is referred to as ‘living below our means’. We have often been counseled to exercise restraint regarding our spending habits, and have also been commanded to obtain a level of financially secure by building up our savings, staying out of debt, and living within our means. (Teachings of Presidents of the Church: Spencer W. Kimball, (2006), 11423) It seems rather silly that a large percentage of our population would be under the assumption that living a large lifestyle, along with the accumulation of fancy things, would somehow equate to wealth. After reading the book, I have come to understand that many of us have an extremely distorted relationship with money, in the assumption that money is to get and spend, while those who are authentic accumulators of wealth understand that money should be invested and stored up as a measure of safety and peace.
In this documentary, many of the individuals were “born rich,” meaning that they have inherited an excessive amount of money, not because of their intelligence and talent, but because they are heirs to wealth. The director of the film, Jamie Johnson highlights the life of the rich, in which the wealthy 1% have more than the rest of the 99% of people. Meritocracy is non-existent in the life of the rich. A rich person has many educational benefits, because they have the networks and connections that those of the middle and lower classes do not have. The rich have the right access to schools because of their wealth and power that comes from their wealthy status. For example, in the documentary one of the rich kids, Luke Weil, attended Brown University and was describing his entry to the Ivy League as expected. He did well on the boards, but it was “incidental” (Weil, movie) because without it he would have still went to Brown University or any other Ivy League University because of his inherited wealth. Interestingly, even when he attended Brown University, he was not a good student, where in his first year he did not attend more than eight academic events, including tests and exams. As a result, he was put on academic probation because he was not attending classes so he was
This idea about becoming multimillionaires over a short period of time or mere hard work has been wide spread through success stories of people’s achieving opportunity in spite of the disadvantages that everyone else has. It seems that in America people are willing to believe any success story that they hear and because of this it gives many Americans a false image of the real world or life. Many people see champions like in boxing for instance, to be complemented with fame, money, and better life while doing what they enjoy the most, but they fall short to realize that there can be one champion. It success stories like these that Mantsios in “Class in America-2012” says that the media has a terminus influence on the perspective of success stories and suggests that Americans live in a facade going from nothing to extremely wealthy society (391). What this shows is that through the use of media people are becoming blind to the idea it will take much more than hard work to achieve upper class status. Because of this blindness, the rich will keep getting richer while everyone else will spend their lives falsifying hope that one day they too will achieve upper class levels status. In the film Trading Places, Ophelia says, “[reading Louis ' palm] You 've never done a day 's work in your life” (trading places). In the film, Luis lived a privileged life where he did not have to do labor-intensive work for a living in comparison to the upper class Americans. The film clearly demonstrates that the idea is falsified, since it can be concluded that the people in the upper class (the one percent) do not work hard at all and still make tons of money
Carnegie opens his essay with the statement that there are three main ways most wealthy people use or distribute their money. First, some pass their money on to the next generation. Children...
The movie Born Rich at first seems like a kid who wants to overcome the “voodoo of inherited wealth” (Born rich, 4:24). Jamie Johnson the heir to the Johnson & Johnson fortune is intent on getting his inner circle of friends to address this controversial issue. From the beginning of the movie there seems to be an unwritten rule that it’s in bad taste to discuss your wealth. This point seems funny that those with money don’t want to talk about their wealth, while those without money only talk about having wealth. As reluctant as they say they are, it seems that they are more than willing to babel on about it and the privilege that accompanies it throughout the movie which seems hypocritical. These kids, seems to range from very grounded to on the verge of paranoia about their money. However when you look at the range of problems, insecurities and unhappiness that exists among these kids it’s easy to say money doesn’t solve your problems.
The characteristics of the affluent researched in the book share seven common traits that have helped them achieve financial success:
The Millionaire Next Door written by Thomas J. Stanley, Ph.D. and William D. Danko, Ph.D. is a highly informative book about what it takes to become wealthy. Some of the information I knew, such as the obvious fact that you need money to be a millionaire, but some information, such as millionaires not owning big luxury items, surprised me. People become wealthy by saving money, not by living in a huge house or driving an expensive car. Most households generate a lot of money, but, because people love buying things, they live from paycheck to paycheck. Stanley and Danko say, “Building wealth requires discipline, sacrifice, and hard work” (Stanley and Danko 5). There are not too many millionaires because people are not willing to change their
main idea discussed is whether or not being rich is a good thing. The story
Economics of Reich “Why the Rich are getting Richer and the Poor, Poorer” written by Robert Reich, describes as the title says, why the rich are getting richer and the poor, poorer. In Reich’s essay, he delves into numerous reasons and gives examples of each. It makes one wonder if the world will continue on the path of complete economic separation between the rich and the poor. One very important factor Reich examines in his essay is that large corporations are always trying to find the edge, whether that is new technology or cheaper wages. One may ask, how does that affect me?
Unlike some people Michael Eisner, CO. CEO of Walt Disney, has become very wealthy. He made more money in one day than some people made in over ten years. “By exercising his stock options, Eisner boosted his take to an astounding five hundred and seventy-five million- more than a million dollars a day” (Cooper). The wealthy people are rising above the poor and middle class and becoming more common than the others. If you would have researched about income a few years ago the middle class and the poor would have been more people than the wealthy.
Becoming wealthy is all about a mixture of hard work, making wise decisions, and investing your money and time into areas that will lead you the highest return of investment. There are very few businesses and ideas that will lead you to a million bucks or more within a short period of time. In this article, you'll learn the basics of being filled with wealth and how to bring money into your life. You'll discover different ideas to help you lead a life where money just flows into your life.