The first person they interviewed was a real estate investor and owner of multiple businesses, and he showed up in an older run-down suit. They prepared a very fancy gourmet meal with expensive beverages and invited the decamillionaires to a fancy penthouse to interview them on their path to wealth. In the book, they discuss some of the interviews they had with what they called “decamillionaires”, or people worth at least $10 million dollars or more. The Millionaire Next Door describes these 7 attributes that are followed by PAW’s to grow their wealth to self-made millionaire status.Īccording to The Millionaire Next Door, three main words come to mind when discussing the importance of living below your means: “FRUGAL, FRUGAL, FRUGAL!” They also are more likely to use bad debt like credit cards, personal loans for unnecessary purchases and other similar financial habits. They are the spenders who don’t take the time to budget or invest their money and often give in on impulse purchases. They use their time properly, spend on a budget, live below their means, and invest regularly.
PAW’s are those who efficiently build wealth to become millionaires or decamillionaires. An Easy Formula, Followed By Few Peopleħ Lessons Learned From The Millionaire Next DoorĪ “Prodigious Accumulator of Wealth” (PAW) and Under Accumulator of Wealth (UAW) are terms used in The Millionaire Next Door book to describe the types of people and the way they spend their money and time to build wealth.Millionaires Are Proficient In Targeting Market Opportunities Millionaires Adult Children Are Economically Self-Sufficient Millionaires Parents Did Not Provide Economic Outpatient Care Millionaires Put Financial Independence Above Social Status Millionaires Allocate Their Time, Energy And Money Efficiently 7 Lessons Learned From The Millionaire Next Door.Here is what each of the lessons means, and how you and I can apply them to building wealth in our own lives. More than just the statistics are the lessons learned from the majority of millionaires today. 1% of millionaires have vehicles that are at least 2 years old, 12.4% three years old, 6.3% with vehicles at least 4 years old, 6.6% with vehicles at least 5 years old, and 12.3% with vehicles that are six years old or older.70% of millionaires never paid more than $29,200 for a new vehicle, and only 5% ever paid more than $57,500 for a new vehicle.50% of millionaires pay less than $235 for a watch, and only 25% ever pay over $1,125 for a wristwatch.75% of millionaires never pay more than $199 for a pair of shoes, and 50% pay less than $140.Other amazing statistics that might get you excited:
Go figure right? So scrap that dream of a $10,000 suit.
Are you an Under Accumulator of Wealth (UAW) or are you a Prodigious Accumulator of Wealth (PAW)?