The Millionaire Next Door: The Surprising Secrets of America's Wealthy
35 pages • 1-hour read
Thomas J. Stanley, William D. DankoThe Millionaire Next Door: The Surprising Secrets of America's Wealthy
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Index of Terms
Economic Outpatient Care
“Economic Outpatient Care” refers to affluent parents giving substantial gifts and cash to their adult children (142). The authors argue that this “care,” while well-meaning, often creates dependency; adult children may use these gifts to live a luxurious lifestyle they could not afford on their own. The authors also argue that people who receive gifts tend to take money more for granted, earning less and spending more.
PAWs (Prodigious Accumulators of Wealth)
The authors use the acronym "PAW" to refer to "prodigious accumulators of wealth" (71). These people have a remarkably high net worth compared to others with the same incomes. The authors present PAWs as admirable financial role models and point to how their frugality, budgeting, and hard drives their success in wealth-building.
AAWs (Average Accumulators of Wealth)
"Average acccumulator(s) of wealth" have a typical net worth for people in their income bracket (14). By neither overspending nor engaging in PAW practices, these people have middling financial results.
UAWs (Under Accumulators of Wealth)
People with surprisingly low net worths are "under accumulators of wealth" (203). This does not mean they are impoverished, only that, given their incomes, they should have more money than they really do. The authors warn the reader against becoming like UAWs. So many professionals with good incomes are UAWs because they don't budget or plan, they overspend, and invest unwisely or not at all.
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