Stop Acting Rich - Start Acting Like A Real Millionaire!

[hakrjak]

Has anybody else been reading the new Thomas Stanley Book, entitled above?

[ame=http://www.amazon.com/Stop-Acting-Rich-Millionaire/dp/0470482559/ref=sr_1_1?ie=UTF8&s=books&qid=1259794335&sr=8-1]Amazon.com: Stop Acting Rich: ...And Start Living Like A Real Millionaire (9780470482551): Thomas J. Stanley: Books[/ame]

Amazon Summary: "
A leading expert on the affluent reveals the real way to build wealth

With well over two million of his books sold, and huge praise from many media outlets, Dr. Thomas J. Stanley is a recognized and highly respected authority on the wealthy, their behavior, and their thinking. Now, in Stop Acting Rich, he details how the less affluent have fallen into the elite luxury brand trap that keeps them from truly acquiring wealth and details how to get out of it by emulating the working rich as opposed to the super elite.
A defensive strategy for tough times, Stop Acting Rich will show you how to live like Warren Buffett-a rich, happy life-through accumulating more wealth and using it to achieve the type of financial freedom that will create true happiness and fulfillment.

• Puts wealth in perspective and shows you how to live rich without spending more
• Details why we spend lavishly and how to stop this destructive cycle
• Discusses how being "rich" means more than just big houses and luxury cars
• Other titles by Stanley: The Millionaire Mind and The Millionaire Next Door

It's time to understand why we buy what we buy, so that we can start accumulating, rather than depleting, wealth. Stop Acting Rich shows you exactly what it takes to achieve this elusive goal."

:coffee:

I'm about halfway through it, and I have to say it's pretty dissapointing. If I wasn't depressed before reading this book -- I'm probably depressed AFTER reading it. haha

The basic premise is that only the "Glittering Rich" can achieve financial independence while ALSO affording to spend money on frivilous things like cars, boats, airplanes, fancy wines, rolex watches, entertaining, lavish trips, etc.... Everybody else is trying to emulate the glittering rich, even though we can't afford it -- and it completely derails our plans for long term financial indepdendence.

I am only halfway through the book, but I believe the message being sent is that you should give up trying to emulate celebrities and the mega-wealthy, and you should lower your expectations and be willing to be happy with less glamorous "stuff".

I don't know how I feel about this. On one hand I think that it's good to be pleased by simple things in life... On the other hand, I don't want anybody telling me that I can't have many nice things..... Hmmmm.... Will update again when I finish the book.

Cheers,

- Hakrjak

 

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[MJ DeMarco]

Stanley is another poster child for the Slowlane, he should get behind the rest of them, Suze Orman, Ramsey, and Bach. I thumbed through his book a week ago and it made me sick to my stomach.

 

[Cat Man Du]

Stanley is another poster child for the Slowlane, he should get behind the rest of them, Suze Orman, Ramsey, and Bach. I thumbed through his book a week ago and it made me sick to my stomach.

Oh Yes ! Godforbid that you should actually enjoy your money!:smx6:

 

[maximus20895]

^ I'm not really sure where you are coming from. I don't see where MJ said anything about not enjoying your money. If you read some of his posts, he actually says the opposite. He also has a Lamborghini. How is that not "enjoying your money".

Now on to other matters. What I believe MJ is trying to say, and this is just pure speculation is that you should not settle for mediocre. This book is basically saying "I'm not going to get rich so I shouldn't even try and face the facts" which in my mind is a very naive thing to say.

Translation: I am NOT in control of my actions or I don't believe that I can take productive action in order to have the lifestyle I want.

Again, this is just speculation as I get that vibe from what was posted in the first.

 

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[Cat Man Du]

^ I'm not really sure where you are coming from. I don't see where MJ said anything about not enjoying your money. If you read some of his posts, he actually says the opposite. He also has a Lamborghini. How is that not "enjoying your money".

Again, this is just speculation as I get that vibe from what was posted in the first.

I was addressing the DUMB book. Not MJ - I certainly enjoy mine ! Porsche and other things. You only live once - This is it baby!:smx4:

 

[MJ DeMarco]

^ I'm not really sure where you are coming from. I don't see where MJ said anything about not enjoying your money.

Unless I myself misinterpreted, I didn't think he alluded that I said (or don't) enjoy my money. Quite the contrary ... I live EXACTLY how I want to live.

As for the Slowlane Pharisees, they want you to settle for mediocre ... you have no chance of wealth and you have no chance of that dream lifestyle. If your dream is a Lamborghini, forget it, if your dream is a beach house, forget it, if your dream needs any assemblance of money, forget it. Give up and settle, work the 9-5 for 40 years, save 10%, behold faith to the stock market and its hopeful annual 8%, and your day of "retirement" will soon come ... with such a impotent, dull strategy, its no wonder most people fail this plan; how can anyone get excited over it? :smx4:

 

[Cat Man Du]

I read his " The Millionaire Next Door" and decided that if that's what it takes - I'll just end it NOW!

Sometines I indulge in a little scarcasm !

 

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[hakrjak]

Getting a little more into the book last night......

Stanley's writing style is very dry, like the PHD that he is... But the book does seem to have some interesting DATA in it, despite being such a downer....

It says that the top car brands owned by millionaires in the USA are actually Fords & Toyotas. The #1 watch is Seiko. The majority reside in houses valued at under $300k. The vast majority have never owned a boat or yacht. Most have never paid more than $300 for a suit. And the majority drink wine that costs under $10 per bottle.

Stanley is painting a picture of most millionaires as being very frugal and down-to-earth.

I don't mind some of this... I am constantly yelling at my wife to buy the $12.99 "jug" of Yellowtail, instead of the $19.99 bottle of expensive wine. I can hardly tell the difference anyway, and figure we can drink $20 wine when we've made it!!

Also on careers, it states that most millionaires are Doctors or Lawyers (Careers #1 and #2), as one would expect... But then the book lists 8 more careers in the top 10 that you'd probably never expect. One is mining engineer.... Who would have thunk it!?! One is FUNERAL DIRECTOR -- Wow... Talk about a career choice most people never consider! haha

Cheers,

- Hakrjak

 

[MJ DeMarco]

It says that the top car brands owned by millionaires in the USA are actually Fords & Toyotas.

:smx9: Count me in this demographic ... how else am I supposed to get to the grocery store? My Tacoma!!

 

[LaughedAt]

These books written by authors who got rich writing self-improvement are getting very old and useless.
Seriously, most millionaires are Doctors or Lawyers? Most SELF-MADE millionaires I know of are business owners\senior executives.
After reading "How To Get Rich" by Felix Dennis I got really sick when thinking about all the money I spent on books without checking the author's credibility, books with titles such as: "How To Get Really Rich", "I Can Help You Become A Millionaire", mostly written by academicians who have much formal education but not a lot of experience in the business world.

Here's a quote I love, from a car forum, written by a successful person as a reply to a question whether the book "Think And Grow Rich" really reveals the secret to becoming rich:
"I tried to think and grow rich, didn't happen. But when I got out there on the street and hustled my a$$ off, then I got rich. After 35 years in business, I've learned there is no "SECRET" to getting rich.
How do you get rich? You find something that is wanted by society (like writing "how to get rich" books), put your idea in gear and go man go.
I read that book many moons ago, along with countless others. They had a few good ideas but for the most part it's pollyanna. Many authors get rich writing self-help books and never have actual business experience".

[Rant off]

:smx9: Count me in this demographic ... how else am I supposed to get to the grocery store? My Tacoma!!

THE LAMBO does it best, only when you drive it, a regular 5 min drive to the grocery store would take like 50 mins with all the attention haha.

Edit: Damn MJ, did you piss Runum off and he ended up banning you LoL?

 

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[hakrjak]

Stanley's book reads like a dissertation with a lot of data and hard facts. I don't think there is any reason to dispute them -- Based on the fact that he collected this data via survey to something like 64,000 millionaires in the USA. There is a slight variation that could cause the answers to be off by a small %, but not much.

Here are the occupational group that make up the top 10 millionaire groups in the USA:

1). Physicians and Surgeons -- 10.01%
2). Attorneys -- 8.85%
3). Farmers & Ranchers 4.76%
4). Mid Level Managers -- 4.45%
5). Managers: Farms & Ranches -- 4.93%
6). Funeral Directors -- 6.10%
7). Authors -- 7.96%
8). Mining and Geological Engineers -- 4.51%
9). Chiropractors -- 4.90%
10). Desktop publishers -- 3.29%

Very interesting stuff... It kind of falls in line with another thread I started a few months ago to discuss high earning jobs... Doctors and lawyers make up the top almost 20% of all millionaires in this country -- Wow... big disparity from the rest of the groups! Had I known this as a young man, I would have probably continued on through law school -- I thought this was just a cliché!

Still curious as to why Desktop Publishers and managers of farms & ranches made the list... Had no idea those folks were high income earners at all!?! I have a friend who is a desktop publisher type / photoshop whiz, and she has trouble holding a $40k/yr job! Maybe they are including web designers & web page entrepreneurs like MJ in this category?

Cheers,

- Harjak

 

[MJ DeMarco]

1). Physicians and Surgeons -- 10.01%
2). Attorneys -- 8.85%
3). Farmers & Ranchers 4.76%
4). Mid Level Managers -- 4.45%
5). Managers: Farms & Ranches -- 4.93%
6). Funeral Directors -- 6.10%
7). Authors -- 7.96%
8). Mining and Geological Engineers -- 4.51%
9). Chiropractors -- 4.90%
10). Desktop publishers -- 3.29%

None of that data surprises me because Stanley describes the upper-middle-class ... sorry to be so depressing but a "millionaire" is just that.

Now, if we ascribe real millionaire status to what it was 20 years ago, we are talking about penta and deca millionaires.

Under that classification, you'll find few of these professions up there. You'll find business owners, authors, inventors, franchisors ... if your interested in Stanley's upper middle-class, I'm sure his book is a fabulous read.

In 10 years, we can add "cocktail waitresses" and "gas station attendants" to this list too because the dollar will be so devalued. At that point, the new millionaire will be $50 MILLION. See my point?

Stanley is just another Slowlane Pharisee who sells books. Notice AUTHOR is on his list, what a great way to make some scratch, sell the Slowlane!

 

[hatterasguy]

I liked his previous two books, I thought he made some really good points in them. I also know a lot of people who fall into the groups he is talking about.


I havn't read his most recent book, but the theme I got from his others is don't live beyond your means. Pretty much don't be a $30k millionaire.

 

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[Cat Man Du]

I liked his previous two books, I thought he made some really good points in them. I also know a lot of people who fall into the groups he is talking about.


I havn't read his most recent book, but the theme I got from his others is don't live beyond your means. Pretty much don't be a $30k millionaire.

You got it!! Shop at Penneys buy a Chevy and you've got it made!:smx4:

 

[hakrjak]

You got it!! Shop at Penneys buy a Chevy and you've got it made!:smx4:

Funny, he says you should buy your suits at JCP's if you want to look like an average millionaire

- Hakrjak

 

[Cat Man Du]

Funny, he says you should buy your suits at JCP's if you want to look like an average millionaire

- Hakrjak

Of course - That's where I got it. Also, you can buy a 3 year old MB and really live it up!:smx6:

 

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[Scout]

6). Funeral Directors -- 6.10%

Does anyone else find this a bit disturbing that funeral Directors are up in the top ten. I don't find it much of a shock, if anyone has recently had to make funeral arrangements it is a major racket. they have a captive customer in a very emotional state and they just nickel and dime you on every little thing.

 

[hatterasguy]

You got it!! Shop at Penneys buy a Chevy and you've got it made!:smx4:

Whats wrong with driving a Chevy? :coco:

 

[hatterasguy]

Funny, he says you should buy your suits at JCP's if you want to look like an average millionaire

- Hakrjak

I know a bunch of millionaires who wear jeans, work boots, and drive 200k mile company trucks. I was actualy going over blueprints with one today who has $10m liquid and about twice that in property.

He goes on some nice vacations though. He is planning on spending the next 4 months going between a beach places he rented in Hawaii, FL Keys, and Bahamas.

 

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[Cat Man Du]

Whats wrong with driving a Chevy? :coco:

Nothing !! It just shouldn't be your dream. I don't believe in living below your means!

 

[hakrjak]

I think that even though Dr. Stanley's book is a downer to a lot of folks who want to hit the Powerball go become MC Hammer overnight... There are some good things to be learned here.

As I continue on, here are a few key lessons I'm taking from it:

1). The vast majority of people who spend a lot of money to convince you that they are rich are simply NOT. They are full of shit.... Their cars, watches, and shoes are all mortgaged to the hilt!

2). If you are spending money trying to convince people that you are affluent before you've "made it" -- It's hampering your ability to truly achieve financial independence. If you are a brand whore, re-examine your life.

3). Live below your means... Find happiness in the things that you have now... Don't spend your life dreaming of stuff in the future, because you might never get it -- Or you might be too old to enjoy it by the time you do!

4). The vast majority of people who have made millions have simple tastes, and don't need to live extravagantly to show off their wealth. It is important to stay grounded, no matter what level of success you achieve.

- Hakrjak

 

[bizzyricky]

well I don't understand the concept of working hard and dicipline for so many years...

Lol and when you get there you can't enjoy it ( you gotta live mediocre)... I'm not saying you gotta go crazy and buy everything but....

If it's like that then its almost pointless to get to the fastlane...why not just stay middle class and save yourself the hassle.

 

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[camski]

Even though I dont consider myself rich yet, and though I would consider myself upper middle class. This chart suggests that I am in the top fifth in terms of income. Graphic: How Class Works - New York Times Now while I can afford a nicer car, I choose to drive a 2005 ford taurus. It is a very practical car and I could care less what other think of what I drive. I live in a small house that is nice but not extravagant at all. I own investment property, stocks and have some cash in the bank. Like I said I am not rich but I am working my way to towards getting there. I plan to become rich by my definition not anyone elses.
Now having said that, I find that trying to look rich doesnt impress those who truly are rich. I would (even though we have never met) say that just because MJ drives a lambo he doesnt do it to "look rich". He does it because for him it was a dream from a pivot point in his life. Contrast that with many people who once they make a litle money rush out and live in the "right" neighborhoods and drive the fanciest cars so that everyone will know they are rich. In fact they buy multiple cars and build huge garages to store them in. They have just as much going out as comes in so they can keep up their "successful" appearance.
My overall point being that the truly rich people dont try to impress, because they dont have to, they are comfortable with who and what they are. They have substance. The wannabes chase the appearance of what society assumes all rich people have and do. They focus on the style. Being rich to me is substance over style.

 

[MJ DeMarco]

I think that even though Dr. Stanley's book is a downer to a lot of folks who want to hit the Powerball go become MC Hammer overnight... There are some good things to be learned here.

As I continue on, here are a few key lessons I'm taking from it:

1). The vast majority of people who spend a lot of money to convince you that they are rich are simply NOT. They are full of shit.... Their cars, watches, and shoes are all mortgaged to the hilt!

2). If you are spending money trying to convince people that you are affluent before you've "made it" -- It's hampering your ability to truly achieve financial independence. If you are a brand whore, re-examine your life.

3). Live below your means... Find happiness in the things that you have now... Don't spend your life dreaming of stuff in the future, because you might never get it -- Or you might be too old to enjoy it by the time you do!

4). The vast majority of people who have made millions have simple tastes, and don't need to live extravagantly to show off their wealth. It is important to stay grounded, no matter what level of success you achieve.

- Hakrjak

This are all good points, which I basically say (in different words) in my own book.

Even though I dont consider myself rich yet, and though I would consider myself upper middle class. This chart suggests that I am in the top fifth in terms of income. Graphic: How Class Works - New York Times Now while I can afford a nicer car, I choose to drive a 2005 ford taurus. It is a very practical car and I could care less what other think of what I drive. I live in a small house that is nice but not extravagant at all. I own investment property, stocks and have some cash in the bank. Like I said I am not rich but I am working my way to towards getting there. I plan to become rich by my definition not anyone elses.
Now having said that, I find that trying to look rich doesnt impress those who truly are rich. I would (even though we have never met) say that just because MJ drives a lambo he doesnt do it to "look rich". He does it because for him it was a dream from a pivot point in his life. Contrast that with many people who once they make a litle money rush out and live in the "right" neighborhoods and drive the fanciest cars so that everyone will know they are rich. In fact they buy multiple cars and build huge garages to store them in. They have just as much going out as comes in so they can keep up their "successful" appearance.
My overall point being that the truly rich people dont try to impress, because they dont have to, they are comfortable with who and what they are. They have substance. The wannabes chase the appearance of what society assumes all rich people have and do. They focus on the style. Being rich to me is substance over style.

What makes me rich is not my Lambo, the big house, or any other "thing" but my freedom ... and I certainly don't look rich unless you count the actual 11 minutes I drive my car every month. The assertion here in this book as it pertains to myself is if I went out and bought 6 more exotics and paid cash, upgraded my already too big house, swapped out my Toyota for an S-Class, I'd be trying hard to flaunt it ... but I'd be at the financial redline and my freedom would slowly erode.

The message here is "live below your means" and its a good message that is relevant for all income/wealth levels.

Stanley focuses on the lifestyle UNDER the means. (EXPENSES)
Fastlane focuses on an elevation of the means. (INCOME + NET WORTH)

 

[Cat Man Du]

This are all good points, which I basically say (in different words) in my own book.



What makes me rich is not my Lambo, the big house, or any other "thing" but my freedom ... and I certainly don't look rich unless you count the actual 11 minutes I drive my car every month. The assertion here in this book as it pertains to myself is if I went out and bought 6 more exotics and paid cash, upgraded my already too big house, swapped out my Toyota for an S-Class, I'd be trying hard to flaunt it ... but I'd be at the financial redline and my freedom would slowly erode.

The message here is "live below your means" and its a good message that is relevant for all income/wealth levels.

Stanley focuses on the lifestyle UNDER the means. (EXPENSES)
Fastlane focuses on an elevation of the means. (INCOME + NET WORTH)

There is a big difference between living below your means and living at your means> The show-offs usually go into debt for their toys. There is a life-style that says you can afford a nice car, home. etc. on your income/assets. To drive a middle class car so that you can get a Porsche when you're 65 years old - STINKS and is right lane thinking!
Life can be much shorter than you count on..... Live life now - not in excess, but enjoy while you can - tomorrow could be too late!

 

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[Pinnacle]

Does anyone else find this a bit disturbing that funeral Directors are up in the top ten. I don't find it much of a shock, if anyone has recently had to make funeral arrangements it is a major racket. they have a captive customer in a very emotional state and they just nickel and dime you on every little thing.

It's a business. What would these people do without these directors in a time where they can't think straight because of being filled with so much emotion? The average person/family does not have the resources to bury their fallen on their own. Tough as it is, a major need is being filled.


As far as the thread topic, Stanley either misunderstands or fails to acknowledge that the purpose of producing is to consume. What the average American doesn't understand/acknowledge, however, is that our consumption is made possible because SOMEONE produced. Both Stanley's theories and those he challenges in his books are irresponsible for these reasons, alone. This is on top of the fact that we shouldn't have to be "ashamed" to spend the money we earn any way we wish.

 

[EastWind]

it's all about a catchy title, acting like a real millionaire before you are a millionaire is an oxymoron. you are just acting, acting like a real millionaire, not BEING a real millionaire. who cares how the millionaire's live? what's more important is doing what millionaires DID BEFORE they made their millions. all that stay frugal or spend money to attract money is not so important. what's more important is the things that will get you your millions.

 

[hakrjak]

it's all about a catchy title, acting like a real millionaire before you are a millionaire is an oxymoron. you are just acting, acting like a real millionaire, not BEING a real millionaire. who cares how the millionaire's live? what's more important is doing what millionaires DID BEFORE they made their millions. all that stay frugal or spend money to attract money is not so important. what's more important is the things that will get you your millions.

I think the premise of the book is to expose a lot of myths about how real millionaires live, to free people from trying to emulate a fallacy. Most people seem to have this notion that they crap on solid gold toilets, and wear $5000 suits every day, and that's not true. Not even close...

Every person on the planet has probably been brand-influenced at one time in their lives by clever marketing that made you think that the "pretty people" are using the product you are being pitched. Whether you recognize it consciously or not -- You probably were influenced.

There is a good chapter I just finished about a Liquor Store clerk who drinks only Grey Goose Vodka. He says it's "Because of the taste! The goose is better than all others, hands down!" -- But when compared to other Vodkas in blind taste tests, there is clearly not much difference at all. In fact 90% of the 300+ brands of Vodka in our country turn out to be derived from the same pure alcohol base supplied by Arther/Daniels/Midland in huge tanker trucks... So there really isn't anything different about the way they are distilled, and none of them are aged, etc... This chapter goes on to expose the real reason the guy drinks Grey Goose, even though he only makes $7.50/hr as a clerk. It makes him feel better about himself, because he feels like he is now the member of an exclusive club. When he goes to bars and orders a "Goose Martini" the $15 price tag is a small price to pay in order to identify himself to everyone in his circle as someone with discriminating taste, and class... All because people perceive the drinkers of Grey Goose to be wealthier, prettier, younger, etc... Little does he know that most Millionaires prefer Smirnoff and it's $17.99 for a 1.75L price tag!

Cheers,

- Hakrjak

 

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[MonTexan]

In fact 90% of the 300+ brands of Vodka in our country turn out to be derived from the same pure alcohol base supplied by Arther/Daniels/Midland in huge tanker trucks... So there really isn't anything different about the way they are distilled, and none of them are aged, etc...

It's all about the marketing. If people THINK you're brand is worth a mint, they'll pay a mint for it. Rolex comes to mind. I guarantee that any timex out there is more accurate than the most expensive Rolex. They are well-known to keep terrible time, yet people pay BIG for them. A $7,500 watch is to the attorney what a $15 goosey is to the liquor store clerk.

Don't get me wrong, I love a stainless Yachtmaster...

 

[hatterasguy]

Stuff is great but I rather have my freedom.

A $15k watch and a $300k car are nice things to have, but they won't make you happy. Freedom is far more valuable at the end of the day.

Being able to say, hmm this month I'm not going to work. I'm going to head out west and tour the national parks insted. Thats more valuable to me than toys.