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Millionaire Next Door

December 7th, 2017 at 05:12 am

Listening to the "Millionaire Next Door," has truly opened my eyes. My God, at my age, my net worth should be about $206,000 and I'm nowhere near that. Ugh I'm so embarrassed.

My goal is to pay off these debts in the next year or at least have 80% paid off by the end of 2018 and to sock away 25% of my income.

The book discusses to set the following goals:
* Daily goals
* Weekly goals
* Monthly goals
* Annual goals
* Lifetime goal

I've listed mine below
* Daily - apply for a new job
* Weekly- complete a task similar to those of the Millionaire Next Door
* Monthly - reduce CC debt by 25%
* Annual - Pay off at least four debts
* Lifetime - visits all 50 states

15 Responses to “Millionaire Next Door”

  1. creditcardfree Says:

    Don't beat yourself up to much! We're human. Once we know better, we do better. You are kickin' it!!

  2. Amber Says:

    Thanks CCF, I'm just trying to figure out how I can contribute the full 18k per year to my 401(k) and still be somewhat comfortable. Looks like annual salary of $75k would do it.

  3. DW Says:

    Amber, it’s not about how much you make, it’s about what you do with what you have.

  4. LuckyRobin Says:

    Can you move to a cheaper apartment? A smaller place with lower rent might be worth the long term gain of being able to add more to the 401K. What about selling your dad's truck? The longer you hold onto it the less value it will have on the market. I know you are holding on for sentimental value, but what would your dad want for you? To keep a truck you don't use or to get out of debt faster so you can contribute fully to your 401K? Take a photo of the truck. You will have the same memories looking at it as you will looking at the truck. It is hard to let go of things that belonged to our parents, I know, but this one is holding you back when it could be moving you forward.

  5. Out of the Dark Says:

    Amber, I've read that book a couple times. Lost my copy, purchased a new one and have it on my list to read again. Great inspiration and very well written. DW is right, along with our other brother and sister SA'ers....it's not how much but what you do with it.

    Stay the course, keep blogging, keep learning and stick to your plan. Jettison any/all extra weight, baggage, unnecessary expenses, waste of time and negativity.

  6. Amber Says:

    Hi all,

    I know it's not about the money you make, though I'd like to make more. I'm just thinking short term but even with my current salary, if I stay the course I'll be able to contribute the max based on my salary.
    I am looking to move; and as far as dad's truck that's a tough one. I know it makes sense but right now I can't get rid of it.

  7. Bluebird Says:

    Hi Amber, you will do it! Knowledge is power! I first read that book in 1997 (and I still have my copy and have loaned it out numerous times). The other book I read around that time was Your Money or Your Life by Joe Dominguez and Vicki Robin. Both had a huge influence on me. But I've always been obsessed with personal finance. Great job setting goals!!!

  8. LuckyRobin Says:

    Amber, revisit the idea in 6 month when your dad's death isn't quite so fresh. You may be far enough in the grieving process to let it go then.

  9. terri77 Says:

    I'd like to listen to this book. How are you listening to it? Can you purchase the audio version through iTunes or Amazon?

  10. terri77 Says:

    I'd like to listen to this book. How are you listening to it? Can you purchase the audio version through iTunes or Amazon?

    I love you lifetime goal of visiting all 50 states. I hope to do the same. Still have quite a few to go.

  11. Amber Says:

    Hi Terri,

    I actually downloaded from my local library using the Hoopla app. You should be able to do the same so long as you have a library card. Some libraries use the app OverDrive as well

  12. LivingAlmostLarge Says:

    Good luck.

  13. Tabs Says:

    If it makes you feel any better, I am nowhere near where my net worth should be either, for my age. But we can only do what we can so....

  14. terri77 Says:

    I bought the book on Ebay & can't wait to read it! I remember skimming it when I was in college (still feels like yesterday, but it was 20 years ago).

  15. Dido Says:

    As an alternative approach, try the ratios suggested by Charles Farrell in his book (and article, linked here: http://www.aaii.com/journal/article/analyzing-your-financial-health-using-personal-financial-ratios.pdf) Your Money Ratios.

    The key is progress over time!

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