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7 Common Denominators among Those Who Successfully Build Wealth (from The Millionaire Next Door by T. J. Stanley and W. D. Danko): 1. They live below their means 2. They allocate their time, energy, and money efficiently in ways conclusive to building wealth. 3. They believe that financial independence is more important than displaying high social status. 4. Their parents didn’t provide economic outpatient care (parents giving economic gifts to their adult children.) 5. Their adult children are economically self-sufficient. 6. They are proficient in targeting market opportunities. 7. They choose the right occupation. Notes from the Wise: Being frugal is the cornerstone of wealth-building. Big spenders are promoted and sensationalized by the popular press.
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Unformatted text preview: Society indoctrinated us with the beliefs that those who have money spend lavishly and if you dont show it, you dont have it. Most of the wealthy wear inexpensive suits and drive American-made cars. Most live in homes valued at $320,000 and about half occupy the same home for about 20 years. They invest nearly 20% of household income each year. 21% of their household wealth is in their private businesses. The wealthy find pleasure in owning substantial amounts of appreciable assets rather than displaying a high-consumption lifestyle. Risk is defined as having only one source of income....
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This note was uploaded on 02/22/2012 for the course FINANCE 250 taught by Professor Maryevans during the Spring '12 term at Rutgers.

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