MILLIONAIRE NEXT DOOR
In ThomasStanley and William Danko’s book, seven traits have been identifiedto be common amongst millionaires (Stanley & Danko,2010). Thesefeatures revolve as questions regarding who millionaires are, whatmillionaires do, where they carry out their different activities,what they involve themselves with, how they operate, where they camefrom and how they become rich (Stanley & Danko,2010).According to these two authors, millionaires are not defined byhaving a posh lifestyle with numerous material possessions. Rather, amillionaire is specified by the ability to get much pleasure frompossessing a substantial amount of assets that are appreciable(Stanley & Danko, 2010).Different authors have as well discussed the common traits that canbe associated with millionaires. Authors, whether of scholarly orpopular articles provide different definition on the meaning ofmillionaires? Most people associate millionaire with wealth,affluence and richness in material possession. The below is hence adiscussion of millionaires from the view of different authors whileconsidering the questions who, what, when, where, why, when and how.
Who areconsidered the wealthy in a country is the first question Stanley andDanko ask their readers. Members of the community can be categorizedinto three diverse categories depending on their spending patterns.There are those who spend more compared to the net worth there arethose who contribute equally to their net worth while there are thosewho tend to save more compared to the net worth. These are the traitsthat distinguish individuals regarding the ability to accumulatewealth. Net worth is definite as the existing worth of a person’sresources. Under Accumulator of Wealth (UAW) is a term that has beenused to describe those in the society who have little net worthcompared to their income. Average Accumulator of Wealth (AAW) on theother hand have a net worth that is equal to their net worth.Millionaires, on the other hand, distinguish themselves from thesetwo groups of individuals as they have a net worth that is generallyhigher that they are income. Time management is also another factorthat many authors argue for distinguishing millionaires form averagecitizens. Time is a precious resource that millionaires take a keeninterest when utilizing. With correct planning, thousands can beaccumulated within a particular given time (Sahadi, 2014). Therefore,planning, spending, and time management are a core feature thatdetermines who the rich are in the specific region.
What is aquestion that begs knowledge on the nature of activities millionairesengage in their normal daily activities is a question of thesignificant amount of interest. Most articles seem to concentrate onthe specific activities that millionaires involve themselves witheither activities to save time, manage their wealth or accumulatewealth. According to Sahadi (2014), millionaires are an entrepreneurby nature and hence are always on the move making business deals orcommitments. Most of the activist or decision that millionaires makeare a business in life in one way or the other. This author furthersargue that high-energy is a common characteristic that millionairesshare. Millionaires tend to sleep less while they enjoy upbeatattitudes. Frank (2015), on the other hand, argue that risk-taking iscommon activity amongst millionaires. Millionaires often haveoptimistic attitudes towards the deals they make regardless of howrisky these events may seem.
Life choicesis a common factor that distinguishes ordinary man to millionaireswithin the society. Choices determine the number of resources orfinance that individuals invested in certain activities orcommitments. Time and funds are limited resources to human hence allactivities that revolve around the utilization of these resourceshave to bring profit as a by-product (Frank, 2015). Those who havelow networks compared to incomes are the individual who does notspend their time building their net worth and hence often viewthemselves to have extra resources. They involve themselves incounterproductive activities such as smoking. On the other hand,millionaires are always managing their time and resources to buildtheir net worth.
Due to theneed to increase their net worth, millionaires are people who workhard and are always focused at the same time. Most average peoplebelieve in short cuts in life hence they engage themselves ingambling. At times they even day dream of occurrences such as winninga lottery. They spend the limited resources purchasing material thatbring temporary satisfaction. In the meantime, millionaires know thatthere are no shortcuts in life. Millionaires come up with goals theyafterward relentlessly peruse (Stanley & Danko,2010). Due tothe pursuit of leaving the dream life of an individual, millionairesput in work up front and put aside other irresponsible decision thathinders them from achieving their set targets. Apart from hard work,the focus is another essential element that distinguish millionairesfrom other individuals in the society (Sahadi, 2014). Focus builddown to the power to make the right choices and decision aboutdifferent issues. Millionaires work hard on the right thing which isthe goals they set to achieve. Regular individuals do not choose theright and the particular path they work hard to make. They,therefore, settle for any simple decisions they come across. Due tofocus, millionaires dedicate themselves to a single pursuit. Hencethey come on top.
Where doMillionaires Shop?
Questions popup regarding where millionaires shop or where they spend their time.Research or articles have perceived millionaires to be people whoseek expensive things be it apartments, equipment’s, cars theydrive or even clothes they wear. Millionaires can shop from onlineplatforms or the actual physical stores. However, they are perceivedto seek for materials that are expensive as they relate expensivenessto quality. Abel (2014) disapproves this argument by saying that richpeople do not shop at the stores that are set aside for them.Millionaires are regular random families that live next door or inour neighborhoods. As long as the worth of a particular familyexceeds a certain amount of the family’s spending and income, thefamily is considered millionaires. These are families that shop atthe regular next door shops. Most shoppers who go to the storesdesignated for the rich are mostly the UAW. These individualsspending are often more or less almost equal to their earnings asthey do not have long-term goals and objectives. On the other hands,affluent or shoppers who are downright, rich people do not prefer the‘upscale stores.`
What doMillionaires Drive?
Millionairescan be divided into self-made millionaires and the millionaires whoinherit their wealth and statuses from family and friends. Mostself-made millionaires prefer to lead a regular lifestyle and driveregular cars. However, on some occasion, millionaires prefer to buyposh cars. This is a decision reached after the primary targetedgoals and objectives have been achieved. On the other hand,millionaires who have inherited their wealth prefer to go for theflashy posh cars as an indication of their status within the society. According to Levin (2016), millionaires who drive flashy cars mostlydo so only because of fashion rather than the functions of the car.Millionaires who struggle from rags to riches are always enthusiasticto store their families as well as their possessions. The Chinese area perfect example of such kind of millionaires. With the rapid riseof the economy in the country, regular peasants have turned into amillionaire and are hence willing and eager to show and enjoy theirwealth to the best they can. Some self-made millionaires prefer tolead the regular normal life and drive standard cars due to theirdistinctive personalities (Abel, 2014). The characteristics of theirpersonalities allow these individuals to approach differentsituations and challenges by creating new values with the currentresources they have. Hence, these are types of people who see wastageof resources in buying flashy cars.
How doMillionaires Invest?
Wheremillionaires invest is a huge determinate on the success rates of theendeavors and business decisions millionaires make. Smart risk-takingis essential in determining areas for investing. Millionaires do notjust gamble with their money blindly with the hope of making the mostout of the business decision they make. Millionaires have a criticalinstinct that alerts them of the risks that are likely to rewardhighly regarding profit. Millionaires involve themselves with risktaking as they have very optimistic attitudes towards the wholeconcept of risk taking. Therefore, millionaires invest in the riskthey understand and consequently find smart and easy ways they canreduce the risks (Carlyle, 2013). Investing in big risks alwaysaccompanies themselves with significant opportunities. Millionaireshave an instinct for asymmetric opportunities hence they often havethe know-how and ability on they will have an advantage when theyinvest. Additionally, millionaires invest in places they can bringunique value. When a situation is perceived to have more risks withless or no advantages at all, the millionaires will not invest insuch cases but will instead walk away. In cases that the billionairessee the need for their investments in filling a particular gap, theyoften jump in and take the opportunity. Additionally, millionairesare likely to invest in businesses that have experienced failure at agiven point in the operations of the firm. Millionaires regard such asituation as an opportunity to change a business idea to an idea thatwill likely lead to success. Millionaires view failure as a steppingstone to success. Millionaires learn from failure and hence come upwith more solid and productive ideas that can in turn act as strong,solid foundations for the business to function efficiently.
AncestralBackground of Millionaires
Ancestralbackground of millionaires acts or do not serve as a determiningfactor to the financial status of millionaires. Self-mademillionaires have one thing in common which is the hard workingnature of these individuals. Most millionaires grew up in the middleclass or lower class families. In some cases, millionaires wereraised from families who were poor. Apart from ambition and hardwork, values instilled by family upbringing play a fundamental rolein the ability of millionaires to amass themselves such kind ofwealth. According to Wattles (2016), family influences aresignificant in determining success compared to innate talent orconnections. Family values are more important compared to theexisting wealth or even family inheritances. Therefore, ancestralbackgrounds of successful people within the United States mentionfamily values as necessary equipment that enables an individual tobecome a millionaire. Strict parenthood is moreover an essentialfactor in the installation of the required values and beliefs. Surveyconducted in the USA amongst millionaires reached a conclusion thatstated that work participating, academic achievement and financialdiscipline were key factors in family values that were emphasizedwith the lineages and families (Wattles, 2016).
How MillionairesEarn their Money?
The processthrough which millionaires earn their money and get reach requiressmartness when it comes to investing, hard work, risk taking anddetermination. However, other common factors come up when researchersor surveyors analyze how millionaires get rich. Millionaires showconfidence when it comes to the execution of tasks. Due toconfidence, millionaires are open to any creative ways and methodsthey can utilize to achieve their dreams and objectives. Withconfidence, millionaires often find any way possible under whichtheir ideas and goals can mature and grow into businesses.Millionaires are discerning due to their confidence levels (Carlyle,2013). As they know they are not smart in all areas and field,millionaires surround themselves with legal people who are smart ondifferent issues that interest the millionaires. By surroundingthemselves with such kinds of individuals, millionaires find ideasand methods they utilize in the achievement of the dreams andvisions. Millionaires also apply modesty in the methods they use tolead their lives. By being modest, millionaires get time andresources to focus towards the achievement of their dreams and goals.Millionaires also thrive on the concept of failure (Frank, 2015).Through continuous. failure, most millionaires have been able tolearn the factors that lead to success and hence utilize these ideasin ensuring they achieve their desired levels of success. Accordingto millionaires, failure is the lessons offered by life on theeffectual, methods that can be utilized for the achievement ofdreams.
Timemanagement is a major component that explains how millionairesachieve their wealth. Millionaire balance time for work, family andthemselves in ways that they can quickly achieve their targeted goals(Carlyle, 2013). Millionaires clear their minds to have enough spacethey can utilize to come efficiently up with lasting ideas they canuse n the success of their businesses. Millionaires avoidprocrastination and in case they procrastinate they do so in orderof the urgency of the tasks that need to be achieved. Lack ofprocrastination ensures that tasks are completed at the right time,and the set objectives are met. Businesses hence easily progress withminimal procrastination at work. Plan and purpose as well ensure thatevery hour of the day is catered. Millionaires spend every singlemoment of their days towards the achievement of the previously setgoals and objectives (Wattles, 2016). Nonetheless, time for restingand relaxing is as well necessary for millionaires. Millionaires setaside specific days of the week which they use for rejuvenating theirenergy for their next task. Going back to work with fresh mindimproves on the art of efficiency in performance. Therefore,millionaires are always on the clock with plans and objectives theyset and work hard to achieve.
Inconclusion, millionaires within the society can be identified bydifferent traits and trends in the practices and lifestyle habits.Therefore, the rich are mostly those who lead a modest lifestyle inthe society.
Abel, J. (2014). Rich people don’t shop at ‘rich people’sstores’ CONSUMERAFFAIRS. Retrieved on 7th July2016 fromhttps://www.consumeraffairs.com/news/rich-people-dont-shop-at-rich-people-stores-071514.html
Carlyle, E. (2013). How self-made Forbes 400 billionaires earnedtheir money. Forbes. Retrieved on 7th July 2016fromhttp://www.forbes.com/sites/erincarlyle/2013/09/18/how-self-made-forbes-400-billionaires-earned-their-money/#46490dce22a1
Frank, R. (2015). Three secrets to the billionaire personality. CNBC.Retrieved on 7th July 2016 fromhttp://www.cnbc.com/2015/05/22/3-secrets-to-the-billionaire-personality.html
Levin, D. (2016). Chinese scions’ song: my daddy’s rich and mylabourghin is good looking. The New York Times. Retrieved on7th July 2016 fromhttp://www.nytimes.com/2016/04/13/world/americas/canada-vancouver-chinese-immigrant-wealth.html?_r=0
Sahadi J. (2014). 7 Traits the rich have in common. CNN Money.Retrieved on 7th July 2016 fromhttp://money.cnn.com/2014/06/01/luxury/rich-personality-traits/
Top of Form
Stanley, T. J., & Danko, W. D. (2010). The millionairenext door: The surprising secrets of America`s wealthy.
Bottom of Form
Wattles, J. (2016). Millionaires chalk success up to hard work andfamily value. Money.cnn. Retrieved on 7th July 2016fromhttp://money.cnn.com/2016/05/23/news/economy/wealthiest-americans-background-family/
Thissection of the paper introduces the book and the authors. Itdiscusses the millionaires and what defines. It also highlight thelaid back nature of millionaires and how their prefer les flashylives.
Thispart of the paper defines the characteristics of those who fallwithin the millionaire bracket. Their net worth is more than theirincomes. They are also entrepreneurs and as such prefer to invest.
whatdo millionaires do?
Thissection of the paper provides a brief overview of the activities thatthe millionaires are likely to do. They use their resources to meettheir financial goals and take risks as well.
Wheredo millionaires shop?
Underthis sub-topic, the paper discusses the shopping characteristics ofthe millionaires. The millionaires are known to prefer regular shopsand do not actually visit the stores that have been set for them.They visit normal shops because they want to lead normal lives. Theyvalue function more than fashion.
Millionairesprefer simple cars. For those who have made their fortune, the normalcars are the most appropriate. However, their future generations gofor the flashy automobiles.
Investmentis one of the most important parts of the millionaires’ lives. Theyprefer to make investment in risky ventures. They conduct a forecastof the business environment. Areas of business that have previouslyexperienced failures are attractive to this group since they havelearnt from past failures.
Ancestralbackground of millionaires
Thereis greater focus on family values across all generations. Such valuescontribute to the growth of their empires. Most millionaires comefrom middle and lower income classes.
Howmillionaires earn their money
Mostof their incomes are earned from investment. Evaluation of the marketplays a major role in the choice of a business.
This part ofthe paper provides a conclusion on the topic under discussion.