Final book review of Stop Acting Rich

Review of Chapter THREE of Stop Acting Rich by Thomas Stanley:
Shoes and clothes of millionaires are divulged. Many non-millionaires overspend on the shoes they think millionaires wear, in order to look rich. Most millionaires do not spend lavishly on shoes. The ones that do are usually celebrities. Real millionaires do not buy expensive suits.

 

The lesson is that if you want to emulate a real millionaire, do not buy expensive clothes.

 

Review of Chapter FOUR of Stop Acting Rich by Thomas Stanley:

The watches that real millionaires wear indicates interesting facts about wealth. Apparently 4 in 10 millionaires who wear expensive watches received them as gifts rather than buying it themselves. The watch on your wrist does not show how wealthy you are, it only shows the time.

 

The lesson is not to be impressed by somebody who has an expensive watch, as the watch is not the same as their bank balance.

Review of Chapter FIVE of Stop Acting Rich by Thomas Stanley:

Grey Goose vodka is very expensive, and is a best seller. The buyers are usually non-rich people who think they are emulating the rich. A lot of these buyers of expensive vodka are trying to fool each other that they are very rich, when most of them are not.

The lesson is to not be taken in by the marketing hype of such products, and not to believe someone is rich by the products they consume.

Review of Chapter SIX of Stop Acting Rich by Thomas Stanley:

Wine collecting is seen in the media as a preserve of the rich, but apparently this is not true and few millionaires collect wine. Also, 94% of millionaires do not have butlers to prepare their meals.

The lesson is that real millionaires are not the wine swigging butler junkies that the movies make them out to be. The reality is far more sober.

Review of Chapter SEVEN of Stop Acting Rich by Thomas Stanley:

The most expensive motor vehicles are driven by those who are rich and those who act rich. Many middle class professionals are struggling badly to pay their car leases, along with all of their other expenses in life. Public opinion polls showed that most people thought that you have to have a very expensive car to be rich, when the reality is that most millionaires are happy to drive "cheaper" cars such as Toyotas. Most millionaires do not drive luxury cars. Stanley tells how baseball legend Joe DiMaggios favourite book was The Millionaire Next Door, which Tom Stanley is proud of. This baseball player built a $45 million fortune and did not squander it. He did this by being frugal. 

 

The lesson is don't be fooled into thinking that those with the most expensive cars have money. When I read about the frugality of Joe DiMaggio, I am reminded of the story that came out in the news a few days ago that former British millionaire football player John Barnes has been declared bankrupt (which was allegedly overturned shortly after). In spite of all of Barnes money making in his lifetime (£millions), lack of interest in frugality and money matters lead to his downfall. Barnes said: "I just hate not having enough money. Apart from that, I don't like dealing with bills and never have done. I let my wife Andrea deal with them."

Review of Chapter EIGHT of Stop Acting Rich by Thomas Stanley:

If your house is in a cheap area you will not have to worry about spending a lot of  money to keep up with the Joneses. He says a big home shows that a person probably has a big debt, which they have trouble maintaining. If you buy a big expensive house in a posh area, then you must spend on other things to maintain the illusion such as expensive clothes, cars, and consumables to go with it. Stanley says that your home and neighbourhood will have the biggest impact on your balance sheet. There are people who can live in expensive neighbourhoods comfortably, but such people are very rich, and they can afford it without struggle. Many people emulate the rich and even think that they themselves are rich. A 2000 poll showed that 19% of people thought they belonged to the richest 1% of Americans. Now that's funny.

The lesson is, don't live in an expensive area. Last year I was talking to a fellow moneyseeker, and I told him of my plan to invest in a property in a particular area X. He said to me don't invest there, invest in area Y, instead as its a more affluent area and the houses are more expensive. I looked at him gobsmacked and lost much financial respect for him. The higher the house price, the higher the mortgage, the higher the taxes, etc.

Review of Chapter NINE of Stop Acting Rich by Thomas Stanley:

All that glitters is not gold. Anyone draped in so called rich trappings of success is highly likely to be living on credit in order to pay for it all. People want success quickly and they don't care how much debt they have to go into to get it. In a fictional letter at the end of the chapter, Stanley says it can take 20 or 30 years to become wealthy.

The lesson is that becoming rich usually takes a long time (20 to 30 years), and the last thing you want to do is impede your progress by wasting lots of money on high status artifacts.

Moneyseeker3000 assessment of Stop Acting Rich by Thomas Stanley:

Stop Acting Rich is a wake up call to a world that thinks that rich people throw their money around, so that is the way for everyone to be, in order to be happy. Frugality is the way to independence and financial freedom. I give this book 3 stars out of 5. It doesn't offer anything new to the financial world that is not covered in his previous books. It shows that a few millionaires can afford the very best the world has to offer, but these people are glittering rich. Attempting to emulate the vision of rich people portrayed by marketing hype is counter-productive as most rich people got rich by being frugal.