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March 18, 2010

Tom Stanley “Stop Acting Rich” Book Review

Filed under: Book Review, Personal Finance, Uncategorized — Tags: , , — thebalancedspreadsheet @ 11:24 am

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I just finished Dr. Tom Stanley’s book “Stop Acting Rich: And Start Living Like A Real Millionaire” and wanted to do a review of it.  This is the third book in the popular “Millionaire next Door” series in which I already reviewed the first book “The Millionaire Next Door” back in June.  Stop Acting Rich is a great follow-up with new and updated information.

Doctor Stanley’s updated research included surveying 944 millionaires.  To qualify as a millionaire one had to have cash and investments of over $1 million, as home equity was not included.  Overall the research found that the average millionaire was 57 years old, with an average income of $212,888 and a net worth of about $2.22 million.

Using the research the book provides consumption habits of millionaires in six different categories.  They are shoes, watches, alcohol, wine, cars, and homes.  The most interesting tidbits found were that millionaires are not as luxurious as we are made to believe.   Their lifestyle is not full of consumption.  As Stanley wrote, “There is no significant correlation between the make [brand] of motor vehicle you drive and your level of happiness with life.”  Similiar results were found when comparing homes and clothing.

Overall if you liked the Millionaire Next Noor or the Millionaire Mind you will enjoy reading this book.  The data and graphs are great and each chapter tells its own story.  The main point I took from this book is that even when the affluent spend on luxury items it is after they work hard and accumulate their nest egg not before.  As Stanley write “If you spend in anticipation of becoming rich, you are unlikely ever to become truly wealthy”.  I find this book a good tool and guide to use when trying to grow ones wealth.


1 Comment »

  1. […] making payments to a bank or to a credit card company.  As noted in The Millionaire Next Door and Stop Acting Rich and Start Acting Like a Real Millionaire, wealth is created by not spending luxuriously but rather living below ones […]

    Pingback by Most Important Money Advice a Young Person Can Receive? « The Balanced Spreadsheet-Financial News, Advice, tips, and more — March 20, 2010 @ 8:21 am

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