The Millionaire Mind by Thomas J. Stanley (Book Report Sample)
a Complete book report based on Chapter 1 of the most recent version (2010) of "the Millionaire Mind ". The report, as per the client should be at least 5 pages of content, double spaced , 12pt. font, 1 inch margins, either APA or MLA format is acceptable.source..
"The Millionaire Mind" by Thomas J. Stanley.
Chapter one of this book evaluates the archetypal profiles of U.S millionaires with the term millionaire denoting U.S.A families with a net worth above one million US Dollars. A behavioral comparison is cast in this chapter between the Under Accumulators of Wealth- UAWs and the Prodigious Accumulator of Wealth- PAWs. Under Accumulator of Wealth-UAW, individuals with low net prosperity about their income. An example is a doctor earning $250,000 if their net worth not more than the (Age Ã—1/10 of pretax income). It is more inclined to income consumption than on income saving methods. On the other hand, Prodigious Accumulators of Wealth-PAW is denoted by the reciprocal of common UAW which usually accumulates over (Age Ã—1/10 of pretax income) and these people are considered as millionaires. An archetypal American millionaire would describe themselves as to be owning businesses regarded as dull-normal. These includes welding contractors, rice farmers, paving contractors, auctioneers, and pest controllers and they claim to be 80% first generation prosperous. Further, this chapter illustrates that approximately 2/3 of the millionaires work between 45-55 hours in a week and that they are meticulous investors.
Chapter one main points
Spending less than what you earn. The authors argue in this chapter that wealth is based on net worth and any person spending more than they earn will obviously fail to raise their net-worth. In particular, they say that most of the wives are organizers and thorough budgeters and that most could attest that wives are to a greater proportion more conservative on money than their men.
Do not buy status goods or live a status lifestyle. From this chapter, purchasing or hiring new and costly imported cars is of poor value since it is a repeating cycle of devaluing resources. Choosing to buy premium items and changing them frequently has the same effect as they hold no value and their cost goes to waste. Competing with the living status of your neighbor is categorized as both poor value and a feeling of the need to keeping on buying goods of ostentation to be on the same standards as your neighbor who is mostly UAWs. Stress is laid on hyper consumers who should grasp more revenue to afford superfluity goods and be more susceptible to income tax and inflation.
PAWs invest if it is worth the gain. Rather than keep their money under mattresses like misers, PAWs will invest their cash in ventures with good interest and will often go for riskier ventures only if they are worth the payback. Most of them will invest in the stock market as well as in private dealings besides venture capital that accumulate interest. They never do gambling or speculations on long-odd bonds.
Spending cash meant for tomorrow today. Further, the UAWs and majority Americans are depicted to be spending money meant for tomorrow today and give this as the prime cause of debt and no net worth under UAWs. Contrary, PAWs believe in saving today's money for the day to come. Therefore most UAWs plan under conditions like an increase in income to make use investment stratagems to accrue wealth. Nevertheless, most of them do not use investment approaches to accrue wealth on meeting the initial conditions. These prerogatives and notions habitually come from a preliminary certainty that an increase in income...