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UAW stand for under accumulator of wealth, which is someone who has
little net worth, he/she makes a decent income but spends too much on
his/her lifestyle, and he/she doesnt invest in anything.
4. In the example of Mr. W.W. Allan, answer the following two questions:
He never extended credit to people The reason he never extended credit to people who
who exhibited the Big Hat, No exhibited the Big Hat, No Cattle was because he believed
cattle philosophy. Why?
they had already spend their money in anticipation before
they have even earned it, which shows that they would not
be able to repay their debts.
Why did he decline the gift of a The reason that he declined the gift was because it did not
Rolls-Royce?
represent anything that he thought of to be important in his
life. He was also worried that owning such a vehicle would
project the wrong picture of him.
5. Regarding Economic Outpatient Care (EOC), answer the following four questions:
Define Economic Outpatient
Care (EOC)
Upon learning his parents were
donating their property to the
local private college, describe
Jamess reaction?
Why was Jamess response
predictable?
As illustrated in the example of
Henry & Josh, what is the
fundamental rule regarding
wealth building? (Be specific)
6. Regarding Affirmative Action, Family Style, answer the following two questions:
Why were sisters
Sarah & Alice so
different regarding
wealth accumulation?
The reason that they were so different was because Sarah ignore their
fathers ancient views on the roles of women, and sought out an
education and career for herself. Her father then went and cut her off
from all financial support, so Sarah had to become financially
independent. On the other hand, Alice was under her father financial
support, not only was Alice under his support but also her husband was
too. When her father passed away they, Alice and her husband, began
to overspend all the money that was for her and her children, then when
Alice passed away her husband was unable to give their daughters a
support for their future, which led Sarah to step in and create trusts for
the girls, in hopes that she would be able to teach the girls about finance.
Kens father told him often: I am not impressed with what people own.
But I am impressed with what they achieve. I am proud to be a
physician. Always strive to be the best in your fieldDont chase
money. If you are the best in your field, money will chase you.
7. Now that you have finished reading The Millionaire Next Door, answer the following three
questions in a minimum of three paragraphs.
How has your perception of millionaires changed?
What are the two concepts you found most useful?
How will you apply them into your life?
When reading this book my perception of being millionaire has not changed very much.
Its amazing how much planning they are doing in order to be known as a millionaire. You
cant just become a millionaire overnight. I think developing good financial habits such as
saving, budgeting, investing and living below your means are concepts that are essential to
become a millionaire.
Some concepts that I found to be useful and I could possibly use in my life are that frugality
pays off one day. It is not enough though. You should also be a knowledgeable investor.
Another thing is to avoid being an EOC at any cost. This is to me the most useful concept since
I know many people are not financially independent, even though it is time to be at their current
ages.
The way I would apply those concepts would be by simply being financially independent.
I feel that parents play a huge role in order to make their kids financially independent. My
parents when I was 20 years old began to charge me for rent. It was not a lot but it really gave
me a sense of responsibility and liability. Another way that shows I am financially independent is
that Im being used to pay for everything I need. My parents no longer pay for anything that is
related to me including school, bills, and food. In addition, its always important to plan for
retirement in advance. That can be done by simply doing an investment that can be paid back. So
when you decided that youre ready to retire, you have some sources where you can get money
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to pay for your living expenses. I think, in general in order to have a comfortable retirement, its
a good idea to figure out how to generate multiple sources of income; so if something went
wrong, you still have money coming in from other sources.
Reflective Writing
Compose 2-3 paragraphs explaining how completing this assignment helped you achieve at
least two (2) of the SLCC Learning Outcomes.
Some of the SLCC learning outcomes that I have accomplished by completing this
assignment are as follows. I have learned to think critically and creatively by comparing my
grade to the economic system. This forced me to really think about the consequences of having
certain ideals.
In addition, reading The Millionaire Next Door helped me to acquire substantive
knowledge about finance and budgeting. While reading this book I found about what I need to
be doing to make my future a better place. Many of us have been convinced that only those
people who have luxury goods are those with the money. In fact, I learnt this is not the case,
and those are usually the people who are under a lot of dept. What I learn is those who are
living under their means are those who are truly wealthy. They are comfortable within the
common things in their lives. This comes to show that appearance can lie to you (Dont judge
a book by its cover), those who live under their means are the ones who have their future
planned out and those are millionaires.
While reading this book I begin to plan my future, and begin to plan the way I should be
spending my money, my mother and sister are perfect examples of someone who lives under
their means. They would rather save money for their future than go out and spend their money
carelessly. They have also been a great example of someone who I want to become financially
in the future. I want to be able to retire and not worry about my finance when I have to be
retired.
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