Who are the rich?

I have a keen interest in the consumer behaviors of the affluent. I am a huge fan of Thomas J. Stanley who often writes books based on the wealthy. So who are the affluent? Hint: they are not the ones wearing $5000 watches, in that designer suit, driving luxury cars. First, how would you define wealthy?

“Wealth is not the same as income. If you make a good income each year and spend it all, you are not getting wealthier. You are just living high. Wealth is what you accumulate and not what you spend” - Thomas J. Stanley, the Millionaire Next Door.

I think the above quote is a pretty sufficient definition. Here are some traits of the prototypical millionaire:

• A businessman who has lived in the same town for most of his adult life.
• Owns a small factory, chain of stores or a service company.
• Lives next door to people with a fraction of his wealth.
• Has an average accumuated household NET WORTH of 3.7 million, yet has a (taxable) income of $131,000 (avg income $247,000).
• Lives well below their means. Meaning no designer suits, no $5000 watches, no current model luxury vehicles.
• 97% are homeowners and a minority only lease their vehicle.
• Many have advance degrees: masters, law, medical, Ph.D
• works 45-50 hours a week
• invest 20% of their taxable income each year.
• TIGHTWAD

I thought this was fairly interesting and insightful!