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"For this study, the wealth market was defined as adults aged 21 or over with a household income of $150,000+ and net assets (not including primary residence) of $500,000 or more"

From STanley's perspective, most of these people would be serious UNDERACHIEVERS of wealth. Making $150,000 and only having a net worth of $500,000, if you are over 30.

Stanley's seven factors of the wealthy are:

1) the live WELL below their means

2) THe allocate their time, energy and money efficiently

3) They believe financial independence is more important that displaying high social status

4) The parents did not provide economic outpatient car

5) Their children are economiclaly self sufficient

6) The are proficient in targeting market opportunites

7) They chose the right occupation

In the Millionaire Next Door, the 'typcial' millionaire is 57, maile, married with 3 children.

One in five is retired

Annual median income level is $131,000, while the average is $247,000. The ones with incomes of $500,000 and above skew the average upwards. The 'typcial' mllionare has a net worth of 1.6 million.

The average net worth is 3.7 million.

The annual budgets for these poeple is 7% of net worth. that is, they live on 7%, per year, of what their net worth if they are worth 1.6 million typically, their annual 'income' before taxes that they spend is about $110,000.

The average value of the home is $320,000, and 97% own their homes. Half have occupied the home for more than 20 years (which means essentially little or no mortgage interest!!!!!!).

The typically millionaire invests 20% of income.

STanley's formula to determine if you are 'wealthly' is:

Multiply your age times your realized pretax annual income. Divide by ten. this, less any inherited wealth, is what your net worth should be.

Example.....if 41 year old Mr X makes $143,000, has investmetns that return another $12,000, he has total income of 155,000. Multiply that times 41, equalling 635,500. Divide by ten, his net worth should be 635,500.

If you are in the top qurtile, you are a PAW, or prodigious accumulator of wealth.

If you are in middle quartiles (25-75% range) you are an AVerage accumlator of wealth. AAW

If you are in the bottom, you are a under accumulator of wealth UAW

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