I’m always on the look out for a good book. I tend to have fiction and non-fiction books on the go at once. I used to have magazines on the go as well and when it got to Sunday and the Sunday Times hit the mat… well there was a hint of panic settling in. I’m better now though.
When travelling overseas the opportunity to find something of interest increases dramatically. Airport books shops, yes please! Although the books have to be in English since I only speak English and various dialects of gibberish.
Anyway, whilst waiting for connections in the USA the bookshops used to be my favourite place to wile away the time. Which finally takes me to the subject of this blog article.
I found this fabulous book titled “The millionaire next door” by Thomas J Stanley and William D Danko. It basically analysis people who have amassed enough money to be millionaires and the canny techniques they’ve employed to make it and hold onto it. The books a bit old, it was published in 1996 but it really has some good stuff in it.
For example it not only states that parents who give their children lots of financial help have to keep doing it but they have the figures to prove it. There is a section on “you are not what you drive” which discusses how people with money don’t spend that much of it and don’t drive flash cars.
Then there’s a section, which may be upsetting for you, may well make you ill and could greatly spoil your day or your week or your year. The following equation is the highlight of the book and is designed to be used to work out how wealthy you should be.
“Multiply your age times your realised pretax annual household income from all sources except inheritances. Divide by ten. This, less any inherited wealth, is what your net worth should be.”
I dare you to try this. However, I suggest you sit down and relax for a few minutes first. You may want to pour yourself a stiff drink for after you’ve worked out your figures. You may wish to do this on your own. For the vast majority of people the results don’t make good reading. You may react badly to them.
Some people may be pleasantly surprised. They will be the canny types. The type of person who thought Call me Daves suggestion to pay of their credit cards isn’t just a good idea it’s wonderful idea and they can afford to do it in one payment.
Let’s not be too saddened by our individual outcomes. After all it’s not over ‘till the fat bloke sings”! Make a stand. Become prudent, frugal or canny. Be decisive. You could start today, or tomorrow or next Monday or the first of November, or after Christmas. I know I will. Probably. Maybe. Possibly.