Summary: Watch Video 1 Watch Video 2 Watch Video 3 Stuart Zadel – The Millionaire Next Door Part 4 Well hello and welcome! This is Stuart Zadel, I want to welcome you to this month’s video as we continue the journey into the seven critical factors that determine the difference between wealthy people (that is millionaires) which we are referring to as Prodigious Accumulator of Wealth or PAWs and non-millionaires or people that we call Under Accumulators of Wealth, that’s UAWs, as determined by the study in the great book, The Millionaire Next Door. So first thing, I’d like to thank everyone that’s watching the videos and talking in person as I travel around the country and those that have been contributing into the conversation be either on Facebook or on the blog itself, and thanks for your participation there. This is actually video number four in an eight-part series and I want to stress again that I highly recommend that you watch all the videos in sequence because each one builds upon the next one. Now last time if you’ll recall, we discussed that one of the key differences in the third video (that was the second factor) was that it’s how you are spending your time that determines the result that you get. We discovered in fact that Prodigious Accumulators of Wealth (PAW’s) spend on average 83% more time each month managing, updating and planning, their financial independence. Now, that’s almost double what the Under Accumulators of Wealth (UAW’s) spend. Now that in itself is a massive figure! But compound that almost double the amount of time spent each and every month over a lifetime, and I think you’ll understand we have massive differences in the wealthy and the non-wealthy or the poor in society. It’s not that one is lucky. They’ve got different habits, and over time those habits are magnified. We also investigated; it’s not how much money you make, it’s what you do with it that counts. So feel free to check out those videos below: Video 1 Video 2 Video 3 Today, we’re going to get to factor number three which I love, and that is simply stated this way: “Financial independence is more important to them than displaying high social status.” The whole chapter kicks off and talks a lot about cars. Probably the single greatest wealth destroyer on the planet Now, cars is certainly something that people display high social status with and I’m not going to get into all that because the chapter is quite lengthy, and you might want to get the book yourself and check it out. But, just to understand that the car is probably the single greatest wealth destroyer on the planet. Certainly behind the family home, (unless you’re into investment properties) it will probably be the second largest investment most people in western societies will ever make. But it’s also, one of the single (it is in my opinion) the single greatest wealth destroyer as well. Think about it, a brand-new car drops in value 20-40% immediately you drive it off the showroom. It’s a usually non-tax deductible debt. The car is worth a lot less each year that goes on and it’s got significant running cost as well. Simply look at your latest registration, you’ll think: “Holy smokes! It costs so much just to get a car and keep the car on the road.” That’s aside from the fuel running the vehicle. The book goes into how Prodigious Accumulators of Wealth buy their cars. I won’t go into it in detail as I said right now. But in general, they are buying stock standard everyday cars. Things like Fords and Holden’s, normal everyday mass-produced cars. The study is predominantly US-based, but of course that might be Toyotas and Hyundais or something out here as well. But they are not wasting their money displaying high social status with luxury European brands and the like of that. Some, a small percentage do all that sort of stuff but in general, that’s where it gets to. Now in general, the Prodigious Accumulators of Wealth end up tending t[...]
