Sunday, July 16, 2006

 

The Millionaire Next Door and a Contest Coming


Thanks to Tricia at Blogging Away Debt, I'm reading The Millionaire Next Door which arrived in the mail on Friday. Tricia read it first and she had a contest to give it away which I won. I'm only on page 66, here's what I have learned so far:

Millionaires think like us, that is they are all about living below your means and paying yourself first. These concepts are nothing new to us pf bloggers, but it is encouraging to see that I am on the correct road to becoming a millionaire.

Now for the sad news, I am a UAW (under accumulator of wealth), well I knew that already but the book told me by just how much I am under-accumulated. In order to determine what your net worth should be, the authors say to take your age, multiply it by your pre-tax annual household income and divide by ten. My net worth should be $179,420 as you can see by the sidebar, I have a ways to go to reach the $358,840 the book recommends. And where did I get that number you say, well the book states that there are two net worth expectations. There is where you should be based on your age and income (179k) and where you should be in order to be "well-positioned in the PAW category" (358k) which is twice the level of net worth expected. A PAW is a prodigious accumulator of wealth. These numbers are quite the lofty goal for me given my current financial state.

And now for the contest! One of Tricia's contest conditions was that the winner had to promise to pay the book forward when finished. So as soon as we finish the book (I'm having bf read it as well) I will be having a give-away for the book with the caveat that the winner will have to promise to keep the book going amongst us. More to come...

4 Comments:

Anonymous Tricia said...

Glad to read your first thoughts from the book and it's great that your boyfriend is reading it as well.

I can't wait to hear more from you, and to see who gets it next :)

- Tricia

4:10 PM  
Blogger NinjaPigeon said...

I must be like, one of the only PF bloggers who've never read this book. One day, it'll happen though!

6:00 PM  
Anonymous freedumb said...

Ninjapigeon, nope you're not! i am too. :)

Kassy, that's an impressive chart...if you were a stock, you'd be like MSFT in the early 90's.

Could you update my link to my new blog address?

http://www.financialfreedumb.com

Thanks,
FF

1:43 PM  
Anonymous Anonymous said...

I enjoyed that book.

-JW

4:47 PM  

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