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ePortfolio assignment Finance 1050

1.
Big Hat, No Cattle is a phrase from an individual in Texas. It is used to
illustrate that sometime people dress or act like they have a lot of money
(big hat) even though they dont (no cattle). It doesnt matter how you dress
or appear, if you do have lots of cattle or property. It drives home the idea
that many millionaires dont dress like what most people think a millionaire
should dress.
Go to Hell Fund is having enough money saved that you can stop working
for ten or more years. It is important, as people get closer to retirement that
they have saved enough money where they no longer need to work.
2.
While Mr. Richards and Mr. Fords expected level of wealth is very close
being that both men are close in age and income, Mr. Richards is worth 5
times as much as Mr. Ford because Mr. Richard must spend much more
money to maintain his familys higher upper middle class lifestyle. He has a
foreign luxury vehicle. He is living above his means, and Mr. Ford places an
emphasis on consumption.
3.
Most people will never become wealthy in one generation if they are
married to people who are wasteful.
Upon giving his wife $8 million of stock, from taking his company public,
what did his wife continue doing?
She continued to cut out coupons. She is doing the same things today
as when they only
had a kitchen table.
Why would someone who is a millionaire need to budget?
They became millionaires by budgeting and controlling expenses, and
they maintain
their affluent status the same way.
4.
Teddy was possessed by possessions because he wanted others to know how
successful he is. He is scared he will lose his competitive edge sales wise
so he purchases more items on credit using his fear of default to continue to
push him.
Had Mr. Friends parents stopped smoking 1095 packs per year for 46 years
($33,190) and instead had invested that money into the stock market they
could have had close to $100,000. If they would have put the cigeratte
money into phillup morris, instead of purchasing the product over 46 years
they would have had close to 2 million dollars.
5.

ePortfolio assignment Finance 1050


Mr. Rodney has sold his financial independence because, he is caught in the
perpetual earn and consume treadmill. Instead of participating in his
companys stock match options, he spent his monthly money on many
frivolous purchases. If he would have participated in the options, he would
now be a millionaire, but now all that time has passed.
6.
Mr. Alan rejected the gift of a Rolls Royce, because he understood it would
change his life. He explained he cant go to a hole in the wall restaurant in a
rolls. He cant throw fish in the back when he goes fishing. The rolls Royce
doesnt represent anything important to Mr. Alan. Often times status artifacts
can be a burden and change the way one feels like they need to be living.
7.
Economic Outpatient CareSubstantial economic gifts and acts of kindness some parents give
their adult children
and grandchildren.
Jamess response when hearing his parents intended to donate a portion of
their fortune to the local college, James was angry. Even though roughly he is
given roughly 20% of his annual income from his parents to cover his
purchases he is scared that the donating of a portion of his parents wealth
will cut into the annual gifts he receives. Whats more is James thinks of
himself as self-made.
James response was predictable because, he is worried that his gravy train
can be coming to end. James most likely views the fortune his parents built
as his own.
The fundamental rule regarding wealth building is whatever your income,
always live below your means.
8.
Beth and her husband have to face many consequences as a result of the
constant EOC they have received. Beths mother had more input on the
home that was purchased than Beth did, partly because it was being
financed by Beths parents. Beths father once drunkenly called Beths
husband a bozo. Robert (Beths husband) is treated as a handyman or a
chauffeur. From the story it is quite clear that the parents look down upon
Beth and Robert because they survive off of mom and dads money.
Weakening the weakBy giving a child (who is irresponsible economically) money you are hurting
the child. Instead of working with a child to help them become responsible,
money is just a quick fix that doesnt resolve the problem, but rather
augments it.
Kens father often told him I am not impressed with what people own. But I
am impressed with what they achieve. Im proud to be a physician. Always
strive to be the best in your field dont chase money. If you are the best in
your field, money will find you.

ePortfolio assignment Finance 1050

9.
The disagreement stemmed from the fact that the condominiums owners
who chose to appear wealthy didnt like Mr. Ws family because they were
not considered beautiful people. The dog wasnt the core of the issue, but
was a means to end to get Mr. W and his family to leave.
10.
My perception of millionaires has changed drastically. Firstly, I hadnt
considered the idea that majority of millionaires dont outwardly appear to be
millionaires. It was very interesting to read that idea of big hat, no cattle.
Most millionaires are quite the opposite small hat, lots of cattle. I also didnt
know that most millionaires are first generation. I had the unfair belief that
they are from old money that is passed down generation to generation.
Two concepts that I found most useful from the book are always to live below
your means and to stay out of your adult childrens family matters. I didnt
realize that wealth isnt measured by the household income of family or the
offense, but wealth is how people spend the income or defense. It is an odd
thought that if family A makes less than family B, they can still be wealthier
than family B. The most important aspect to the equation is what percentage
either family is spending of their income. The second concept, is much
smaller and only earns one paragraph in the book, but is very important.
While I dont have any children yet, I do feel as if sometimes parents and or
in-laws, everyone to live life the way that they have done it. This can cause
huge amounts of stress and it can fracture family relationships.
One specific example I can do to improve my financial standing is ensuring I
dont live beyond my means. Often times it is very easy to be tempted to
buy things that I want instead of things that I need. A smaller point to help
ensure I dont live beyond my means is to budget. The book points out even
millionaires need to budget. That is how they became millionaires.
Reflective Writing
This assignment helped me to improve my ability to communicate effectively.
It can be difficult expressing ones ideas clearly and simply, but this
assignment especially question #10 was another chance to improve my
ability to communicate. Often times communication via writing can be
difficult, because the medium isnt fluid. In a conversation, one can check to
ensure others are comprehending, but in a written format it is not possible.
Each opportunity I have to practice my ability to communicate helps me to
grow. Practice makes perfect. An important aspect of communication is to
the medium. This project has helped me improve my typing as well which is
an important aspect when communicating via a word processor.
This assignment has also helped me to improve computer and information
literacy. Each time I use Microsoft Word, I am learning different ways to be

ePortfolio assignment Finance 1050


improve the end product. Each time I venture further and further into the
tabs at the top of the program. With each assignment I place on my
eportfolio, I am becoming more and more comfortable with using it. I am also
learning more options and better ways to use the eportfolio. These types of
assignments help me to become more familiar with other types of programs,
canvas for example. I am grateful for assignments (like this one) that stretch
my ability to use computer programs.