The Millionaire Next Door Patrick Flood FIN 1050

1. Explain the following 2 concepts

a. Big Hat, No Cattle You see people that just seem like they are
keeping up with all the latest and greatest, and it quite frankly
looks like they are rich. In all reality they may just be using all
their money to put on the look as if they are rich rather than
investing time and money to be truly wealthy.
b. Go to Hell Fund This is basically a fund that allows wealthy
people to live for years and years without having a job. A go to
hell fund can be a common thing among people who arent
necessarily millionaires though. As long as you save little by little
to help you in case you say to your boss go to hell and you just
leave your job. Its a fund to help you in circumstances like that
where you will be out of work.
2. PAW and UAW: the former, meaning Prodigious Accumulator of
Wealth. People of the same age and roughly amount of income and the
ability to use that to build their actual net worth. The latter, being the
Under Accumulators of wealth, basically the opposite. They dont do
much to build their self net worth.
3. Short Answers to the following
a. Most people will never become wealthy in one generation if
they are married to people who are WASTEFUL.
b. Upon giving his wife $8 million of stock, from taking his company
public, what did his wife continue doing? Cutting out them
Coupons
c. Why would someone who is a millionaire need to budget? thats
how they became a millionaire in the first place.
4. In the example of Theodore Teddy J. Friend and his parents,
answer the following two questions:
a. The book describes Teddy as being possessed by possessions
Explain this comment. He was raised in such a way that buying
things is exactly what his money was for when he receives it so
the more he was wanting or needing to buy the more he needed
to earn. So it was the possessions that were in control of his
behavior.
b. What was the small change Teddys parents could have made
that would put them in the millionaire category? Well for one,
change their perspective or rather the behavior that they had
about money. Invest the money and even save. Not just spend all
the time. The cigarette money seriously was a lot that couldve
been useful.
5. Mr. Rodney is a high-income/low-net worth corporate manager.
Explain why he is described as having sold his financial
independence. He backed out of an opportunity of investment
 through stocks that wouldve been a helpful investment in the long run
but because he turned it down it it hurt him later.
6. Why did Mr. W.W. Allan decline the gift of the Rolls-Royce? He
was specific about how he loves fishing and how you cant throw fish in
the back of a sweet ride like a Royce. It just didnt fit his lifestyle and it
wouldve been a burden if anything for him.
7. Regarding Economic Outpatient Care, answer the following
four questions:
a. Explain this statement: The more dollars adult children receive,
the fewer they accumulate. -- the more your adult children
borrow money the more they spend of things that arent
investments to help them with their own income/net worth.
b. What is the likely financial outcome for Mary & Lamar once her
mother passes away? they have too much to pay for right now
that it is going to be difficult for them to figure out their money
and how much they even really have.
c. The parents of Ms. BPF were determined to give their daughter
every advantage. After they created an ideal environment for
her, what was the result? She is old and still living at home and
with an independent future still out there for her she has her
business and things going for her right now that her parents
have been investing a lot of money into, so it kind of has locked
Ms. BPF in to her parents lives dependently for a while it seems,
unless she makes efforts to be independent.
d. In the case of Laura (A Woman of Great Courage), explain the
primary message derived from her story? she is a living
example of putting your mind to anything and achieving
greatness. She was a teacher and was struggling with money
and then went into real estate with full intention and purpose to
do well and she did.
8. Regarding Affirmative Action, Family Style, answer the
following three questions:
a. In the example of sisters Ann & Beth, describe the consequences
to Beth & her husband from receiving EOC? because Beths
parents helped with buying Beth and her husbands home it
seems as though that is held over their heads in many ways by
the parents. They financially cripple themselves and make Beth
and her husband do a lot for them since they are in close
proximity from their home.
b. Explain the concept weakening the weak. when children or
others that may be uneducated financially, you must help and by
not helping thats what weakening the already weak means.
c. Select one of the Rules for Affluent Parents & Productive Children
& explain why you think this rule is important.
9. Explain the root cause for the conflict between Mr. W & the
residents of the vacation condominiums -- the dog was simply the
 residents scape goat if you will. They used the dog as the excuse to
get rid of Mr. W so he wouldnt be cramping their beautiful people
style.
10. Now that you have finished reading The Millionaire Next
Door, answer the following questions in a minimum of three
paragraphs:
a. What are the two concepts you found most useful? I really
enjoyed learning about UAW and PAW because I can apply that to
myself and see others or other situations in a much better light
as I use those concepts. As I read the different stories of the
different situations I was able to find little characteristics here
and there that I am able to understand better about myself and
how my financial perspective goes.
b. Give a specific example of one small change you can make to
improve your financial well-being. I believe that ignorance is a
major obstacle, so having this knowledge that I do now, just from
studying experiences of others, I will make the small step
forward of change that involves more awareness in my finances.
I will do more to track and keep a better eye on what I have
going on for me. Most importantly to track more to save more.

Reflective Writing

Compose 2-3 Paragraphs explaining how completing this

assignment helped you achieve at least two of the SLCC
Learning Outcomes:

The first Salt Lake community college learning outcome that I will
outline that has really stood out to me as I did this research and studying,
will definitely be the outcome of thinking critically and creatively. I feel like
financial problems come up on people because of ignorance. Ignorance can
be easily overcome if your awareness is focused on your goals and what you
really want out of your current situation. Ignorance is over come through
effort and hard work. Now, thinking critically and creatively, helps overcome
that obstacle of ignorance. It is a way of working hard and using your efforts
wisely. Being able to get creative with your finances can really come in handy
when you want to save for things such as a house or shaving a bigger family.
Using critical thinking, can I help you be organized and use the necessary
tools to help you do all that it takes to make sure that you were being official
until affective and tracking and planning your finances. I plan on doing that
now.

The next Salt Lake community college learning outcome that I will take
away from this class, is believe it or not the developing computer and
information literacy. We did and activity in this class and for which were used
financial documents through Microsoft excel. I really loved what was possible
on that Excel spreadsheet. I really think that this class has given me The
motivation to want to develop those skills even further. I wanted to be able
to use these tools to help me and my family work out the best plan is for us
financially. A lot of things can be done by hand with a pen and paper, but
computer and information literacy, it's something I took away from this class
as something that will really help me in the future.

In conclusion, of all the things that I've learned in this class, as well as
all the experiences that I have seen and studied about, it all comes down to
the action that I will take. And diving deep into this class and discovering
many different things about myself as well as all the different instruments
and tools that can be used to help me with my finances, I am excited for the
future.