Comments on: Who are 'the rich', really?

By: When is the right time to own a business? « How to Make 7 Million in 7 Years™

Mon, 01 Dec 2008 13:31:30 +0000

[...] my take on this video drew some sharp criticism, so I countered with some comments by Prof. Thomas J. Stanley (author of The Millionaire Next Door and The [...]

By: AJC

AJC — Mon, 27 Oct 2008 03:23:57 +0000

@ Jeff – Not at all … and, a great question I can summarize my position as follows:

MM201 : Business = Good

MM301 : Business = Bad

… naturally, there are exceptions, but not in the way that Get Rich, Stay Rich, Pass It On suggests.

By: Jeff

Jeff — Sun, 26 Oct 2008 21:49:41 +0000

@AJC – Maybe I’ve misunderstood your philosophy. I read both 7M7Y and 7MIT and have used your methods to try and determine my own number. Through that process I have come to the conclusion that owning your own business is one of the best ways to achieve the necessary compound growth required to achieve my number.

Have I misinterpreted the message?

Thanks
-Jeff

By: AJC

AJC — Sun, 26 Oct 2008 20:24:36 +0000

@ Jeff – Just because that’s how MOST made their money, doesn’t mean that it’s the BEST way to make YOUR money … that’s what we want to talk about here. Of course, the Millionaire Mind does lay down some useful groundwork.

By the way, the ONLY thing that I found useful about “get rich, stay rich, pass it on” is their Benchmark (even that, I have some disagreement over … for example too much of these millionaire’s net worth is tied up in their personal real estate (home, second/third homes, etc.),

Also, they have confused CAUSE with EFFECT:

Because so many millionaires have made their money in business, their conclusion is that if you are rich in some other way (say CEO,professional, consultant, etc.) and want to pass your wealth on to the next generation you should then buy or start a ‘real’ business … poppycock!

By: Jeff

Jeff — Sun, 26 Oct 2008 17:44:00 +0000

Guten Tag von Deutschland. I’m on travel in the German Alps south of Munich.

How timely, I’m currently reading “The Millionaire Mind.” It’s interesting to see the habit patterns and opinions of so many successful people. The book can be a bit dry at times (it’s basically a report of findings) but it’s been encouraging to discover threads of my own behaviors and beliefs in the book.

Now I just need to find the money.

I’m only a couple chapters into the book but my big take away thus far is that being a moral person of high standards who owns and invests in their own business has been a key success factor.

This is similar to the tone you take here at 7M7Y and one I’ve seen espoused in other books (e.g. “Get Rich, Stay Rich and Pass It On”).

As for bashing the rich. Well, I think people tend to criticize and complain the most about the things they understand the least.

Thanks for the great summary,
-Jeff
Learn to mange money and lead your personal finances.

By: AJC

AJC — Sat, 25 Oct 2008 19:38:43 +0000

@ Thomas – I can’t answer for certain, but the book found that most millionaires owned businesses – for long periods of time – and the owners slowly accumulated wealth by not spending and investing conservatively. This leads me to believe that it’s the latter: “i.e. rent, dividends, business income, etc”.

By: Thomas

Thomas — Sat, 25 Oct 2008 18:09:53 +0000

Thanks for posting these survey results. I have read the other book (The millionaire next door) and I really liked it.
Quick question about the people surveyed: You stated that these are people that earn $1,000,000 a year or more. Is that through all income sources, i.e. rent, dividends, business income, etc or only a certain kind of income?

Thanks,

Thomas