Stop Acting Rich ... And Start Living Like A Real Millionaire
Wiley (Published 2009)
Written By Thomas J Stanley
USA

Review 5 stars— Life Changing

How the blurb describes the book:
The steep price we're paying for the credit crisis begs the question: what led so many Americans to spend so far beyond their means? Why did so many buy into the myth that hyper spending like the rich would somehow convey real wealth? In his most timely book to date, #1 New York Times bestselling author Thomas Stanley reveals the results of a major survey which uncovers the sharp differences between the spending habits of real millionaires versus those who are just "acting rich." It turns out that the big spenders aren't who we thought they were. The "aspiring rich" far outspend real millionaires, who rarely spend above their means regardless of the extent of their wealth. As a result, they've mortgaged their future on an illusion.

Stop Acting Rich exposes the huge gap between what we think "rich" looks like versus what it actually is. Dr. Stanley's research and the national survey carried out on his behalf by University of Georgia Survey Research Institute rips the lid off just about every assumption we have about who the really rich are (and aren't), what they do (and don't do) and what they buy (and don't buy).

For example:

• The #1 most popular make of car among millionaires is Toyota--not BMW or Mercedes

• Real millionaires pay about $16 (tip included) for a haircut at a traditional barber shop

• Nearly 4 in 10 millionaires surveyed buy wine that costs around $10

• There are currently more than 350,000 millionaire educators (working or retired teachers or professors)--a profession that is far better at transforming income into true wealth than doctors or lawyers

• Only 5.7 percent of all millionaires surveyed nationally paid $1,000 or more for their most recently acquired suit

• Sixty-four percent of all real millionaires have never owned a second house – not even a rustic log cabin in the woods

• The proportion of Americans who owned boats in 2006 exceeded the proportion who left an estate of $1 million or more in 2007 by a ratio of nearly 5 to 1

• In the U.S., there are nearly three times more millionaires living in homes that have a market value of under $300,000 than there are living in homes valued at $1 million or more

• The number one preferred brand of shoes worn by millionaire women is Nine West and their favourite clothing store is Ann Taylor--with the Gap and Costco not far behind

• Most real millionaires eschew Rolex, Omega and Tag Heuer timepieces in favour of Seiko watches

• Those who give away larger portions of their income to charitable causes end up accumulating more wealth.

In Stop Acting Rich, Dr. Stanley explores the profile, professions, and psychology of the typical status-and-brand-obsessed U.S. consumer. He uncovers who the most successful wealth accumulators are – not doctors and lawyers or business professionals, but educators, engineers and farmers. Funeral directors, for example, are better at accumulating wealth than doctors even though their income ranks well below doctors.

Stop Acting Rich makes clear the greatest cause of our financial woes: residence, but it's not only the price of our home, it is also where we live. Live in an upscale neighbourhood and you will spend more on everything from your car to your haircuts. Successful wealth accumulators understand that keeping up with the Joneses is a drain. Far better to live in a community where the neighbours' net worth is lower than theirs and Grey Goose is not on the menu.

By revealing the truths about what millionaires really spend their money on, and how the rest of us spend in an illusory attempt to emulate them, Dr. Stanley has written an important, must-read book that will transform the debate about America's hyper consumer culture, and show us all how to get on the right path toward attaining genuine, long-lasting wealth now and for the future.

Mr Home Budget's Review:
Thomas Stanley the author of Stop Acting Rich is indeed a gifted writer. His other works include The Millionaire Next Door and the Millionaire Women Next Door. And this book Stop Acting Rich once again hits the nail on the head.

The chapter which is the most important is "Everything you think about rich is wrong". This is where he uses facts, figures and survey results to prove and smash conventional thinking about rich people. In fact, a majority of millionaires do not even look rich. Yet there are thousands upon thousands of non-millionaires who go out of their way to look rich. And over the course of their lives, looking rich actually costs them greatly in total accumulative savings.

He gives examples of a behaviour pattern that real millionaires adopt which really saves them money over the course of their life. This includes:

Not purchasing homes in exclusive suburbs

Only buying second hand cars, which would not be considered luxury

Saving money where they can at the supermarket

Not using debt or credit cards

Being extremely frugal in all aspects of their lives

While people he calls aspirational rich (e.g. look rich but are not) follow a different yet strangely opposite pattern of habits:

Buying houses in exclusive neighbourhoods

Updating their cars regularly with new ones

Buying clothing brands which would be considered high end

Using credit cards and car loan debt to purchase items when there is a shortfall of cash

These aspirational rich believe they can purchase success. Instead of working for success they can buy items which in their mind a successful person would own, thus shortcutting their way to success. In fact these aspirational rich even purchase high end alcohol to display a status symbol at parties and get-togethers.

Thomas Stanley calls buying high end goods, icon displaying. A $10,000 watch is an icon. People who wear a watch like this are telling the world, "Hey look at me; I'm so successful I can afford an expensive watch". And while the world or strangers are probably impressed with the watch, it doesn't mean by any standard, that the person wearing it is really successful. In fact, they could have purchased it via a maxed out credit card. The book encourages you to stop buying the icons and start thinking about success and gaining wealth without displaying any icons to the outside world.

One part that I really enjoyed and which caught my eye: "Wealth isn't accumulated on an elaborate European vacation –it's accumulated by spending a summer vacation camping and visiting museums. Wealth isn't accumulated with a country club membership – it's accumulated with a walk in the park with that you want to be around. Wealth isn't accumulated from rich mahogany and many leather bound books – it's accumulated from a home you feel comfortable in and books you actually read, probably checked out from the library."

While this is only one of the books Stanley Thomas has written. It is 100% worth getting as you can't help but learn more about yourself, co-workers, family, friends and the world in general. Plus understand who is handicapping themselves from gaining real wealth.

Pros:
A brilliant book with a great message.
Just by adding a few things from the book into your life, you will be able to change for a much richer future.

Cons:
It is quite long.