The Millionaire Next Door

[propertymanager]

Bluemoon,

I agree with your idea, but your wording isn't quite accurate.  Most doctors, lawyers, and other professionals are not millionaires - that was the point in The Millionaire Next Door.  They have high incomes but relatively a low net worth.   The definition of a Millionaire is someone with a net worth of $1,000,000.  Of course, we both know that a net worth of a million dollars won't buy you a cup of coffee at the corner gas station.  Only if those assets are producing income will you be able to enjoy that java.

However, I agree with your premise that those that are truly "rich" are those that can live their lives without having to work to provide for daily living expenses.  Of course, if you ask 100 people for their definition of rich, you'll get 100 different answers.  For some people, it would be an annual income of $X per year.  For others, it would be having a net worth of $X.  For you and me, it might be the ability to work when we want and to have a certain lifestyle.

Mike

[4444]

Just finished the book. I learned a lot about who I want to become and how my childhood impacted my desires. It was interesting how the afluent in america tell their kids to become highly skilled individuals (like lawyers, doctors and accountants). I got a small academic scholarship to a big state school and got in as a "business major". I plan on expanding my knowledge and have always wanted to write for the school newspaper. I plan on majoring in either finance or entrepreneurship, but who knows. I plan on finding what I am truly passionate about. What i realized is that anyone in america can live "happily" both financially and materialisticly with knowledge and a budget. I just plan on finding something that I am passionate about and as of now investing is something that I would love doing (all asset classes, though). I would like to thank everyone for their advice. 

[Dave NB Can]

Interesting thread.
I read this book a few years ago and wanted to point out a small detail.

The original question was entrepreneurs having a greater net-worth than highly educated professionals.

One key ingredient in this that has not been touched on is that a successful entrepreneur can add the value of his business to his net-worth.  Most professionals can't do this because they work for someone else or own a piece of a business with a partnership structure designed to net-out all available cash to the partners.

I went to university and got a degree in business administration.  It has taken me almost 10 years to unlearn what I was taught and re-educate myself in doing creative real estate deals.  University is a machine designed to produce middle managers for fortune 500 companies.  Why do you think they keep making endowments to them? 

If you want to benefit yourself, you need to create your own education plan and learn useful information.  Visiting sites like these and doing the courses for sale are a great way to do this.  By earning degrees that others recognize, you are, in effect, seeking validation from those other people.  STOP! they aren't going to pay your mortgage.

I would recommend that young people stay very skeptical when studying at university.  Always ask "why do they want me to think this way?"

cheers
Dave

[rookieNYC]

Dave NB Can,
  Very good post..As I still feel that college is never wasted time it is even more important to understand how the *real* world of business works..I did have this issue when I was in college..I clearly remember the day in my business administration class when I asked the professor what experience he had to be teaching the course and how many different industries/businesses he has owned/operated in his years..He answered zero,he learned it all from reading..From that day forward I never looked at any professor the same..I learned everything that made me successful from *real life mentors*...People I can call/IM/meet in person...While college helped me to get in the door of my career my *street* knowledge moved me up the ladder of life..Book smarts and SAT scores will only get you so far..But if you can be smart enough and open minded you will excel in the game of business...Eyes and ears open,mouth shut and be humble and no question is stupid when you are trying to learn...