BOOK CARD
- Original title: The millionaire next door
- English title: The Millionaire Next Door
- Author: Thomas J. Stanley
- Category: Personal finance
THE 8 FACTORS TO BECOME RICH
- Live below your means by spending the right amount.
- Use your time, money and energy effectively to create wealth.
- Financial independence must be more important than letting others see how you spend your money on designer clothes, houses, or fancy cars.
- Parents don’t have to give you money, you have to work for it.
- Your children must be self-sufficient.
- You have to be good at seizing marketing opportunities
- Choose the right job.
- Plan your future and current expenses by keeping track of your income and expenses.
FINANCIAL OBJECTIVES
- Get rich before you retire.
- Grow your assets.
- Getting rich through capital appreciation which indicates the increase in the NOMINAL VALUE of a capital stock over time.
- Build capital while maintaining the value of your assets.
- Reduce the TOTAL ANNUAL INCOME, to reduce it you need to deduct most of the expenses if possible, taking care to keep receipts for ALL the expenses incurred for your business:
Invoices from restaurants, business travel expenses, the fuel card, professional refresher courses…
WHAT SHOULD YOU DO!!
- Plan your financial future by dedicating the necessary time to it.
- Don’t tell your children that you are rich.
- Teaching his children the discipline about money and frugality.
- Children must not know that you are rich until they have adopted a mature, disciplined and frugal lifestyle.
- Minimize discussions about the division of assets with your children.
- NEVER give large gifts as gifts to your children because if one receives 10,000 and the other wants a similar sum, and if you give them 5,000, he will be disappointed.
- Don’t compete with your children, NEVER brag about your results as I have much more money than you or I’ve had more girlfriends than you.
- Remember that children are human beings who arouse envy and have dreams and goals.
- Emphasize even the smallest accomplishment of your children.
- Telling children that there are things more precious than money such as health, happiness…
WHAT DO I THINK?
The guidelines given by the author are easily followed, it is said that you will become really rich by following these tips, but at least you will know how you spend your money and how you earn it.
I think this book helps you reflect on how to manage money and not be manipulated by the eternal space you buy useless things.
VOTE:
Rated 4 out of 5
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