Friday, August 20, 2010

What Do you spend your time doing?

I recently picked up the Millionaire next Door book by Thomas J Stanley and its a great read. In one particular chapter Mr Stanley went on to described two types of people. Throughout the book he references the two types to drive home points. I thought it was interesting so I decided to share it....

PAW- Prodigious accumulator of Wealth: To be well positioned in the PAW category, you should be worth twice the level of wealth expected. PAWS are builders of wealth, that is they are best at building net worth compared to others in their income/age category. PAWs typically have a minimum of four times the wealth accumulated by UAWS.

UAW- Under accumulator of wealth (self explanatory)

According to Mr Stanley, efficiency is one of the most important components of wealth accumulation. People who become wealthy allocate their time, energy, and money in ways consistent with enhancing their net worth. PAWS allocate nearly twice the number of hours per month to planning their financial investments as UAWS do. I personally believe im somewhere near the UAW side of things. I KNOW I waste a lot of time doing things that have nothing to do with building wealth. I do believe that we should spend time enjoying our guilty pleasures but sometimes we can go overboard.

So what would you rather be doing, spending time watching t.v or building wealth? DON'T BE A UAW!


Young Mogul said...

I read that book- actually I own it- and, of course, I love it! Every nugget of advice in that book is a gem.

Divine and Debt Free said...

cool! we are so kindred! lol