I have been reading this book written by Thomas J Stanley & William D. Danko.
It is more of a research that the two did in their search who are the real millionaires in the United States and to their surprise the real millionaires are not the people that you see in TV and news announcing the value of their newly bought how in the Hampton or their latest fashion style care of this and that designer. The true millionaires are the ordinary people who has mastered some of the secret of wealth accumulation. I have already mentioned about this topic in a previous post but I would like to expound on the three acronyms.
UAW or Under Accumulator of Wealth are persons who doesn't know how to manage their finances. You can find a big rock star, a well known doctor, a very good sales person earning a lot of commissions but they still fall under this category for the fact that they don't know how to make their money work for them in spite of their earning capacities. In layman's term these are the Spenders. They may have great sources of income but must of those earning are slipping away from their hands because they never knew how to make that money work for them....in other words they work hard to spend money and in the end they are broke.
AAW or Average Accumulator of Wealth. These are the normal people. They have regular jobs or even they are famous celebrity or a famous neighborhood shop owner. They do there daily routines and that is all. They are able to meet their needs and only sometimes they struggle to fund some of their financial needs. In other words they just have enough for what ever they need they are in actuality savers. So in case emergencies come there capabilities is only of to what they have save. Savers are good people but nit as lucky as the PAW. These group should be able to rise above so that they can well manage their finances and make money work for them.
PAW or Prodigious Accumulator of Wealth are the wise people who knew how to save and how to invest. They don't mind having a second hand car as long a sit serves ts purpose and it never broke their wallets because they wanted their money to work for them. They invest in business, stocks, and other sources of income while still having a regular job. They only spend when necessary and always take advantage of the right bargain. They always way options first before buying and if it is possible to delay and wait for a better price they can always wait. The secret is knowing how to invest what you have save.