Common factors to becoming a millionaire - The Millionaire Next Door Book
07/21/21 • 37 min
The classic book "The Millionaire Next Door" explores 7 common factors between the millionaires around us. We all have our perceptions of what a millionaire looks like, but this perception is not accurate! We'll explore 3 takeaways and 3 applications to your financial life to get you closer to becoming the millionaire next door yourself.
Takeaways
- Takeaway #1 [08:41] - Living well below your means. This is accomplished "playing great defense", having a budget, and planning for the future.
- Takeaway #2 [15:36] - Allocate your time, energy, and money in ways that are conducive to building wealth
- Takeaway #3 [25:03] - Raise children who are independent and do not provide "economic outpaitent care."
Financial Applications
- Choose a field [33:14]
- Save 20% of your income [34:14]
- Put together a plan [36:14]
Links
Indexology Exhibit 1: Most will underperform the market average
SPIVA: 2020 Active vs Passive Scorecard
Financial Samurai: Active vs Passive performance
Barrons: Hedge Fund performance
Next Up
Next week we'll talk about the book Indistractable and how you can stop getting distracted from your money goals!
Advertising Inquiries: https://redcircle.com/brands
The classic book "The Millionaire Next Door" explores 7 common factors between the millionaires around us. We all have our perceptions of what a millionaire looks like, but this perception is not accurate! We'll explore 3 takeaways and 3 applications to your financial life to get you closer to becoming the millionaire next door yourself.
Takeaways
- Takeaway #1 [08:41] - Living well below your means. This is accomplished "playing great defense", having a budget, and planning for the future.
- Takeaway #2 [15:36] - Allocate your time, energy, and money in ways that are conducive to building wealth
- Takeaway #3 [25:03] - Raise children who are independent and do not provide "economic outpaitent care."
Financial Applications
- Choose a field [33:14]
- Save 20% of your income [34:14]
- Put together a plan [36:14]
Links
Indexology Exhibit 1: Most will underperform the market average
SPIVA: 2020 Active vs Passive Scorecard
Financial Samurai: Active vs Passive performance
Barrons: Hedge Fund performance
Next Up
Next week we'll talk about the book Indistractable and how you can stop getting distracted from your money goals!
Advertising Inquiries: https://redcircle.com/brands
Previous Episode
5 book recommendations to level up your personal finances
“The most important investment you can make is in yourself.” - Warren Buffet
Learning from those smarter than you is a key to financial success and these 5 books should help you get one step closer to a better financial future.
Outline
- The Psychology of Money by Morgan Housel [03:35]
- The Millionaire Next Door by Thomas Stanley & William Danko [08:31]
- I Will Teach You To Be Rich by Ramit Sethi [10:42]
- Essentialism by Greg McKeown & Effortless[15:13]
- Soundtracks by Jon Acuff [19:17]
Links (some affiliate links)
The Millionaire Next Door book
I Will Teach You To Be Rich book
Next Up
Next week we'll look at the book The Millionaire Next Door.
Advertising Inquiries: https://redcircle.com/brands
Next Episode
How to stop getting distracted from your money goals - Indistractable Book
We are constantly distracted in all phases of our lives. Whether it be your phone notifications, interruptions at work, or getting sucked into the social media app feed loop, we all have weaknesses for something that can take us away from what we really want. Through the book Indistractable, we'll learn how to reduce distractions and turn that into traction towards fulfilling the money goals we have.
Takeaways
- Takeaway #1 [09:16] - We need to understand the root causes of distraction.
- Takeaway #2 [13:57] - Thinking differently about our internal triggers and apply the 10-minute rule to fight them.
- Takeaway #3 [21:59] - Know what you're being distracted from by timeboxing.
Financial Applications
- Take time to examine the root causes of your money mistakes [25:31]
- Implement the 10-minute rule to better manage your spending [30:57]
Links
Indistractable bonuses (after purchase)
Next Up
Next week we'll talk about the book "Tiny Habits" and how you can create 'After I ____, I will ____' statements to improve your personal financial outcomes.
Advertising Inquiries: https://redcircle.com/brands
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