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"But I think this is the difference between the millionaire mind and the peson without the millionaire mind. "

You have to be careful here. In Stanley's book, the Millionaire Mind, he is talking about people with a net worth of over 10 million dollars.....net worth....most of these people don't need to borrow a ffew piddling couple hundred thousand to buy a house...

I'm sure Bill Gates didn't have to borrow money to buy his 'house'. any of the 15 million......and likely didn't......his exemptions start phasing out at a little over $130,000......and at his level, probably count for nil......or Tiger Woods.....or Madonna....

In Stanley's first book, the Millionaire Next Door, most of the people in the book had net worth of a few million, and had gotten there, mostly by being successful business men and women. Almost none had inherited significant amount of money. Yes, they lived in houses commensurate with their income often...but many also had lived in the same house for 20 or 30 years. They didn't live in 'mansions', have a gardner, cook, and chauffeur.....

They didn't go out of their way to buy ostentatious houses, and I don't recall any comment in the book about people buying big houses in order to get big deductions. Quite the opposite was true...most of them had 'dull' lives compared to the fake impressions left on tv.... preferred Coke and beer to expensive wines.....didn't touch caviar......at the interviews he conducted....didn't wear Rolex watches or piles of gold chains or fancy diamond pinky rings....that is the stuff of TV stories, of "Who Shot JR", and all the follow onl shows.....

Anyone wearing 40 lbs of gold chains like Mr T on the A-team, trying to fight or run, would lose every battle....just grab a chain and choke him to death...or give him a push, and over he goes....hee hee..


So I would clearly disagree with your statement that the 'millionaire mind' feels it is necessary to pay big interest on a big mortgage.

That said, it should also be noted that many of the millionaires Stanley interviewed had their net worth in other than stock, so it wasn't immediately able to be converted to liquid assets. In many cases, they did use leverage, both in their business, and in a mortgage, to conduct financial transactions. BUt in most cases, they were very conservative.

It was interesting to note, that in Stanley's book, he noted that doctors are often among the highest paid people. They tend, as a group, to have very low net worth compared to their income level. They have typically adopted a high consumption lifestyle (big house, expensive cars, expensive country club, expensive habits, expensive kids, etc) that inhibits their ability to accummulate assets and net worth.
They are usually NOT among the people in his book.

I would think that Kiyosaki, the so claimed 'author'of rich dad, poor dad, who gives pretty rotten advice, would certainly subscribe to this statement in one part of his book....in other he says to be debt free ....he has it both ways.....then again, he was homeless for a few weeks, living in his car, with both he and his wife with college degrees, barely making ends meet (in his book Cashflow Quadrant)....so you can take his advice for what its worth.....

No, methinks you watch too much TV.....

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