Anthony Herrera

Joe Howell
The Millionaire next door

Questions - The Millionaire Next Door

1.

Explain the following two (2) concepts addressed in

The Millionaire Next Door: Big Hat, No
Cattle You dont spend youre wealth on flashy toys,
cars, or cloths. But your income is more than you
have to show for; youll never know whom the
millionaire is because they dont spend money on the
flashy cloths, homes and toys.

2.

Go to Hell Fund Money set aside for if the

income has come to a stop, they go to hell fun is
going to pay for all the bills, and needs to stay afloat
and keep going with life. To live for more than ten
years, they save 15% of ther income.

3.

In the examples of Mr. Richards (PAW) & Mr. Ford

(UAW), both men are close in age & yearly income.
Explain why Mr. Richards has nearly five times the
net worth of Mr. Ford. (Be specific).

4.

Mr. Richards live on seven percent of his wealth, he

lives below his means. He has no credit card debt
and budgets his income. He has stayed in the same
home for many years. He drives an American car,
two years old and never bought new.

5.

Mr. Ford spends money on new cars, spends money

on expensive cloths, lives in a gated community, and
has a high conception lifestyle.

6.

Provide short answers to the following four (4)

questions:

What is the cornerstone of wealthbuilding?

Saving money, and living below your lifestyle.

Most people will never become

wealthy in one generation if they are married to
people who are second generation of wealth.

Upon giving his wife $8 million of

stock, from taking his company public, what did his
wife continue doing? Investing in stalk

Why would someone who is a

millionaire need to budget? To live below there
means, low consumption lifestyle.
7.

In the example of Theodore Teddy J. Friend and his

parents, answer the following two (2) questions:

The book describes Teddy as being

possessed by possessions. Explain this comment.
Teddy spend money on expensive yearly charges, he
was posseted by all that he has bought.

What was the small change Teddys

parents could have made that would put them in the
millionaire category? (Be specific.) They could save
money, not spend money on expensive cloths, or
new cars. Set aside money for the go to hell fund.
8.

Mr. Rodney is a high-income/low-net worth corporate

manager. Explain why he is described as having sold

his financial independence. His income was high,
but so was his lifestyle. He set aside No money for
when his corporation goes under, and his net worth
was effected.
9.

Why did Mr. W.W. Allan decline the gift of a RollsRoyce? Because there is no investment in an
expensive gift.

10. Regarding Economic Outpatient Care (EOC), answer

the following four (4) questions:
=

Define Economic Outpatient Care

(EOC). Care for an adult child financially.

Upon learning his parents were

donating their property to the local private college,
describe Jamess reaction.

Why was Jamess response

predictable? James was use to his parent providing
for him his whole life.

As illustrated in the example of Henry

& Josh, what is the fundamental rule regarding
wealth building? (Be specific.) When building wealth,
save ten percent of your income, live below your
means and save.
8.

Regarding Affirmative Action, Family Style, answer

the following two (2) questions: Why were sisters
Sarah & Alice so different regarding wealth
accumulation? What did Kens father tell him
often? (Be specific.)

9.

Explain the root cause for the conflict between Mr. W

& the residents of the vacation condominiums. (HINT:
Its not because of his dog.)

10. Now that you have finished reading The Millionaire

Next Door, answer the following three (3) questions
in a minimum of three (3) paragraphs. How has
your perception of millionaires changed? What
are the two (2) concepts you found most useful?
Give a specific example of one small change you
can make to improve your financial well- being.

Reflective Writing
Readingthemillionairenextdoor,andunderstandingtheoutcomesthathappen
whenlivingblowyourmeanshascomesogreatlytomeoverthereadingofthe
millionairenextdoor.Bringmoreawarenessthatthesocietyweliveinwiththewealthy
doctors,orCEOshavefancycarsandniceclothsreallysetupabadexampleforthere
offsprings,andalsomakeyouwonderiftheyarelivingabovethereincome.Iquestion
myselfnowafterreadingthemillionairenextdoor,doIneedthenicethingsthatIpay
monthlyfor.IfmyfancythingsIhavedontpayforthemselvesandittakesmoneyout
ofmynetworthitsnotworthhavingit.Thiswasawonderfulbookthatbroughtmore
understandingtonetworthandtherealityofmillionairesandsavings.