The Millionaire Next Door

1. Explain the following 2 concepts

a. Big Hat, No Cattle This is the idea that people that have money
are investing in things that are the latest and greatest, just so
that they look like they have money. By spending all of their
money on these specific things, it leads to them losing money
fast. They may look like they have money by the things that they
buy, but they may actually not have any money at all.
b. Go to Hell Fund This is a fund that over time you have saved
enough to live without working. It can be back up money if you
quit your job, or get fired.
2. PAW and UAW: PAW stands for Prodigious Accumulator of Wealth. Those
receiving similar amounts as their income build their net worth. And
UAW meaning the Under Accumulators of wealth can be stated as
completely different. They dont build their net worth, but rather spend
and spend without investing in more that will add to net worth.
3. Short Answers to the following
a. Most people will never become wealthy in one generation if
they are married to people who are wasteful.
b. Upon giving his wife $8 million of stock, from taking his company
public, what did his wife continue doing? Cutting coupons
c. Why would someone who is a millionaire need to budget? They
need to budget because thats how they became millionaires. If
they didnt budget, they would be spending all of their money,
and never make it to be a millionaire.
4. In the example of Theodore Teddy J. Friend and his parents, answer
the following two questions:
a. The book describes Teddy as being possessed by possessions
Explain this comment. He grew up always buying things.
Whenever he earned his money, he would buy something right
away. The more he wanted to buy, the more money he needed.
b. What was the small change Teddys parents could have made
that would put them in the millionaire category? They were in
the bad habit of spending the money they had. They werent
very good about saving money, and investing it. They had a lot
of money that could have made them millionaires, but thy spent
all their money.
5. Mr. Rodney is a high-income/low-net worth corporate manager. Explain
why he is described as having sold his financial independence. He
turned down an opportunity for investment in stock. It could have been
really helpful to him in the long run, but he turned it down, and it
ended up hurting his finances.
6. Why did Mr. W.W. Allan decline the gift of the Rolls-Royce? He didnt
care for a car like that. He enjoyed fishing and he said that he wouldnt
 have been able to throw his fish in the back of his car if he had a nice
car like that.
7. Regarding Economic Outpatient Care, answer the following four
questions:
a. Explain this statement: The more dollars adult children receive,
the fewer they accumulate. -- There are some adult children
that ask their parents for money. They end up spending it on
things, instead of investing it in ways to help their income in the
long run.
b. What is the likely financial outcome for Mary & Lamar once her
mother passes away? They have too many things that they are
paying for, and debts they are paying off. Because of that, they
have a hard time figuring out their finances.
c. The parents of Ms. BPF were determined to give their daughter
every advantage. After they created an ideal environment for
her, what was the result? She is living with her parents, and
shes very dependent on them. She has a future for her in her
small business she has started, but she is not going to get far
without her parents.
d. In the case of Laura (A Woman of Great Courage), explain the
primary message derived from her story? She was originally a
teacher, not making much money. She went in to real estate and
she worked so hard that she became very successful. It just
shows that hard work pays off.
8. Regarding Affirmative Action, Family Style, answer the following three
questions:
a. In the example of sisters Ann & Beth, describe the consequences
to Beth & her husband from receiving EOC? Beths parents
bought her and her husband a home. Later the parents lost a lot
of money, and they seemed to hold buying Beths home above
her head. They ask a lot of Beth and her family.
b. *Explain the concept weakening the weak. when children or
others that may be uneducated financially, you must help and by
not helping thats what weakening the already weak means.
c. Select one of the Rules for Affluent Parents & Productive Children
& explain why you think this rule is important. The one I think is
most important is, No matter how wealthy you are, teach your
children discipline and frugality. I think this is especially
important because its important for individuals to work for
things. They should not have everything handed to them; they
should work for what they want.
9. Explain the root cause for the conflict between Mr. W & the residents of
the vacation condominiums The residents were very stuck up and
would use the dog as the excuse to shew away Mr. W. When really they
had it out for him instead.
10. Now that you have finished reading The Millionaire Next Door,
answer the following questions in a minimum of three paragraphs:
a. What are the two concepts you found most useful? I liked the
story of Ms. BPF. Her parents wanted to give her everything, and
because of that, she cannot live an independent life and be
successful. When I graduated High School, I didnt have any
money. My parents paid for me to attend Utah State University
for 2 years, and they paid for me to serve an LDS mission. While I
was on my mission, I set a goal that I would never need their
help financially again. I came home, and got a job right away.
There was only one time that I got in a car accident and needed
to borrow some money from them. I earned money to pay them
back right away. I am now married, and my husband and I have
not needed their financial help.
b. Give a specific example of one small change you can make to
improve your financial well-being. When I was first married my
husband and I were really good about saving money. Each
paycheck we would put a certain amount away, and not touch it.
We have recently gotten in the bad habit of spending out savings
money. We go out to eat far too often, and because of that we
are spending a lot of our paychecks on food. One thing that we
can really work on to improve out financial well being is to save
each paycheck and not spend it. Even if we open a savings
account that we cant see so that we are not tempted to spend it.

Reflective Writing

Compose 2-3 Paragraphs explaining how completing this assignment

helped you achieve at least two of the SLCC Learning Outcomes: