In another case study the book shares the story of вЂњMr.

When you need to spend more, you need to earn more.вЂќ The way they spent their money and the lifestyle Teddy was raised in gave the message that, вЂњOne earns to spend. Growing up, TeddyвЂ™s parents were also over consumers and were not wealthy because of it. He was always worried about what people saw of his possessions and outer appearance, and spent all his money living up to what he thought his lifestyle should appear to be. Three of those reasons are: Teddy is the ultimate consumer, he is вЂњpossessed by his possessions,вЂќ and he has no sense of frugality. Friend,вЂќ or вЂњTeddy.вЂќ He is considered a UAW and the story gives numerous examples. One of the case study stories in the book was about вЂњMr. On page 37 the author announces that, вЂњMost people will never become wealthy in one generation if they are married to people who are wasteful.вЂќ An example of frugality was given when a millionaire told his wife he was giving her $8 million worth of stock, and she just expressed that she appreciated it and continues cutting out cheap coupons to save more money. This concept is expressed throughout the entire book and I found it to be one of the most influential theories from the reading.

The book also discloses that the cornerstone to wealth building is being frugal. In The Millionaire Next Door the term wasteful is defined as, вЂњa lifestyle marked by lavish spending and hyper-consumption.вЂќ Someone who is wasteful would not invest their money wisely or live off of the minimum. Although someone who is a UAW could have a large income, they are not accumulators of wealth based on where the money goes. A UAW is someone who is an under accumulator of wealth. A UAW on the other hand, is the opposite. This is the description of a person who is good at building net worth and wealth, not just someone who makes a large amount of money. The third concept, PAW, stands for prodigious accumulator of wealth. It is the fact that many millionaires have built up enough funds to be able to live a comfortable lifestyle for ten or more years without working. The second concept, the вЂњGo to Hell FundвЂќ is something that describes the portrait of a millionaire. But, there are millionaires who spend less money on their homes and clothing, but are extremely wealthy. It is the conclusion that many people dress fancy and have вЂњbig hats,вЂќ but are often not wealthy. The вЂњBig Hat, No CattleвЂќ concept is the idea that many millionaires do not have the outside appearance that they are millionaires. Four of the concepts addressed in the book The Millionaire Next Door were, вЂњBig Hat, No Cattle,вЂќ вЂњGo to Hell Fund,вЂќ PAW, and UAW.

Millionaire next door paw