October 17, 2013

Thomas Stanley’s book, Stop Acting Rich, describes the dilemma many Americans have: to be rich or to act rich. Explain?

2 thoughts on “October 17, 2013”

  1. Alex Christianson says:

    To act rich is to continuously trying to go above and beyond the Jones-es. This is by getting new houses, cars, luxury item that give them the appearance of wealth. In reality their finnances are doing terrible and they are biting off more materialism that they should budget for. To be rich is to be more careful with what you take in and invest wisely instead of buying junk in the here and now depleting your financial resources (money is an important means for survival and today’s societies). Over a long chunk of time with good habits your money will grow and you will be truly rich.

  2. Mike Finley says:

    That was a great answer, Alex. Let’s recap.

    Thomas Stanley, author of The Millionaire Next Door, The Millionaire Mind, and Stop Acting Rich, has studied the real millionaires for quite some time and he shares his findings in these three wonderful books. What has he identified? Your eyes can deceive you.

    Just because someone is wearing the latest designer clothing, driving the new car, owning the newest phone, and living in the biggest house does not mean they are rich. Actually, it is probably a good sign they are not (they have purchased stuff on credit that will depreciate very quickly). They are acting rich.

    Stanley makes the case (with plenty of evidence) that the vast majority of Americans have a choice. They can act rich (see above) or they can actually be rich. Be rich? Live below their means (minimize the use of credit), save their money consistently over time, and invest it wisely in stocks, real estate, or themselves (business and/or education). With time (decades, not days) and the right habits, wealth is created. Will they look rich? No, they will look like your average Joe or Jane. YOUR EYES CAN DECEIVE YOU.

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