Lesson from “The Millionaire Next Door” (IM 549)

Thomas J. Stanley, in his book ” The Millionaire Next Door: The Surprising Secrets of America’s Wealthy”, identifies and reveals the seven common traits that shows up again and again among those American who accumulate prodigious amount of wealth. Defining three terms Prodigious Accumulator of Wealth (PAW), Under Accumulator of Wealth (UAW) and Average Accumulator…

Power of compounding (IM#101)

In 1790, before Benjamin Franklin died, he left about $1000 to each cities of Boston and Philadelphia with a request of not to use it for 100 years. With 8% annual compound rate, after 200 years, in 1990, that money amounted to $6.5 millions. This is the power of compounding. Recently, I went through a…