Wednesday, March 3, 2010

The Difference Between Acting Rich and Being Rich






The Difference Between Acting Rich and Being Rich
In short, your net worth is essentially a result of the choices you make. To generate significant savings to invest, you need to make the right career decisions, the right lifestyle decisions and the right spending decisions. It takes forethought. It takes discipline. And it means making hard choices.
Dr. Stanley hammers this message home in his latest book. It's called Stop Acting Rich... and Start Living Like a Real Millionaire. It's not a book for debtors and spenders who want compassion and understanding. Rather, it's a wake-up call for the millions of consumers out there who are living far beyond their means.
Most millionaires - folks with liquid assets of one million dollars or more - are not big spenders. Quite the opposite, in fact.
According to Stanley, the most productive accumulators of wealth spend far less than can afford on homes, cars, clothing, taxes, vacations, food, beverages and entertainment.
On the other hand, the wanna-be's - people with higher-than-average incomes, but not much net worth) are merely "aspirational." They buy expensive clothes, top-shelf wines and liquors, luxury cars, powerboats, all kinds of bling and more house than they can comfortably afford.
Their problem, in essence, is that they're trying to look rich. And this prevents them from ever becoming rich.

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