Thomas J Stanley day

Today is going to be Thomas J Stanley day. He wrote 2 of my top 3 books "The Millionaire Next Door", and "The Millionaire Mind", and has just released his next book "Stop acting rich...and Start Living Like a Real Millionaire". If you are interested in seeking money at all, you need to read his books right now.

You can find out more on his website www.thomasJstanley.com,

Have a look at Thomas Stanleys blog.

Also, check out Thomas Stanley on Twitter.

Thomas Stanley went out and did his research to find out how people get rich. Of all the books and sources I have read over the years, his books remain firmly on top of my pile. He is like a modern day Napoleon Hill, (the author of Think and Grow Rich), because he is going out and actually interviewing real millionaires to find the truth about money.

I have spent a good portion of my time going through Thomas Stanleys website and blog, and I'm going to learn everything I can from it. Moneyseeking is compulsive to me, and I shall be like a sponge, soaking up every last piece of advice. I have recently received his latest book, "Stop acting rich...and Start Living Like a Real Millionaire", from Amazon. It's 9 chapters and so I am going to start partially reviewing it as I'm reading it each day. Starting now.

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

Stanley says there are many distinct types of millionaires and denotes the existence of the glittering rich, (or super-rich) millionaires, who have far more money than normal millionaires. People hinder their chances of becoming rich by trying to buy what these super-millionaires buy. People who have great financial defense, i.e. frugality are more effective than people who simply earn very high incomes. I'm going to remember this as it basically tells me that saving is far more important than earning. Previously I decided to see the split as 51% financial defense and 49% financial offense. Now I will see defense as far more important. Stanley shows how people become wealthy by living below their means. I particularly liked the bit where he says that school teachers have a much higher capacity to become wealthy than the norm, because for the most part, they are so frugal. This shows that anyone in a normal job can make an outstanding job of their finances if they are frugal. Wealth accumulation is akin to a long distance marathon and the fantastic example is given of Dr E who was only a college professor for over 30 years, yet became a multimillionaire via frugality.

I think that Stanley is showing that there are millionaires, and then there are even bigger millionaires. The lesson appears to be that attempting to be a super-rich millionaire like Donald Trump is a hard act to follow, but copying the habits of a less rich millionaire (such as my millionaire mentor Mr Piper who is Frugal with a capital 'F') is a far more realistic course of action.

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

The glittering rich are able to hyperspend the way they do, because they can afford it. They are actually living within their means. The glittering rich are a rare breed. Most millionaires live in "affordable" homes in "non-rich" neighbourhoods, this is how they can build wealth as they don't need to spend extra money on expensive maintenance. Rich farmers, who usually live in rural areas, are exposed as exceedingly good at building wealth, as they are not in close proximity to opportunities to waste their money. So, when you see what looks like a glittering rich person, hyperspending in the top shops, buying the best the world has to offer, they are either a real glittering rich person, backed up by their balance sheet, or they are a fake, wasting their money and future opportunities to be rich. The glittering rich are a rare breed, so such a person is probably the latter.

The lesson appears to be 'don't be ashamed to live within your means', as all of those people who seem to be flashing their money around are most probably in the biggest financial trouble.