Cassidy Nielsen

The Millionaire Next Door E-Portfolio Assignment

06-08-2016

1: Big Hat, No Cattle is a concept where if you may have a big hat (fancy
clothes, fancy cars, a fancy house) but, you dont have cattle to back it up.
You put on a big show for everyone thats not exactly accurate when it
comes to your bank accounts, retirement fund, and net worth.
1a: The Go to Hell concept is where you have earned enough money to be
able to live without working for 10 or more years. That is also without
sacrificing anything you currently have, because you live beneath your
means.
2: When it comes to the lifestyle Mr. Richards lives, he doesnt consume the
majority of his income. He and his family live beneath the means of their
income. He is just fine wearing nice suites, but not custom made. He doesnt
wear $5000 watches either.
Mr. Ford on the other hand lives above his means, he over spends in order to
show off his status. He is one who purchases the expensive cars, expensive
suites, and expensive watches. He has expensive everything! Therefore, he
is not building his net worth, or his saving fund.
3: Most people will never become wealthy if they are married to people who
are wasteful
3a: After her husband gave her $8 million worth of stock, she thanked him
and continued cutting out 25 and 50 off food coupons.
3b: A millionaire need to budget because thats how they became a
millionaire in the first place. Budgeting plays a major role in what happens
with your income. They work their way to the millionaire status, and they
maintain that with budgeting.
4: The meaning behind what the book said about Teddy being possessed by
possessions stems from the fact that he must have the best of practically
everything. One earns to spend. When you need to spend more, you need
to earn more. He works hard every day to provide the best for him and his
family. Although, even though he might have the best, he doesnt have
nearly has much in savings and in stocks as he could. When he stops
working for whatever reason, he wont be able to continue their lifestyle for
too much longer.
4a: If Teddys parents had invested just their cigarette money into some
stocks, they could have turned around with more money to actually buy a
tobacco company. The books says At the end of 46 years, the couple would
have had a tobacco portfolio worth over $2 million.
5: Mr. Rodney would like to become financially independent eventually, but
he did not choose to take part of the tax-advantaged benefit that his work

Cassidy Nielsen

The Millionaire Next Door E-Portfolio Assignment

06-08-2016

offers. Instead he decided to live in a very expensive home, lease cars, join
clubs, own a vacation home, and pay taxes. He is not realistic when it comes
to his finances. He is on a constant earn and consume rotation.
6: Mr. Allen didnt want the lifestyle that came with owning a Rolls-Royce.
The car would be too nice to take fishing, which is one of his favorite things
to do in his free time. Plus, he would probably feel the pressure to spend
more of his money to bring the rest of his life up to the status that the RollsRoyce holds.
7: Economic Outpatient Care- This refers to the substantial economic gifts
and acts of kindness some parents give their adult children and
grandchildren.
7a: James felt threatened, his future income was threatened. He was upset
with the decision his parents had made.
7b: James reaction was typical of the people in his situation. Being gifted
money has been his security for some time now, and he is not amused with
the thought of not having as much money flow into his account from his
parents.
7c: Henry and Josh are very different stories, although they are brothers.
Building wealth with the hope of having a comfortable retirement plan means
that you need to follow Henrys example, and you need to live well beneath
your means, and be smart with your income ( whither its given to your or
not). Josh on the other hand will have a tough time retiring comfortably
because he is living a very expensive lifestyle and relies heavily on his
parents really nice gift of cash.
8: In the story of Ann and Beth, their parents were always there with money
for them. When Beth got married, they were in a tougher situation and had
to depend on Beths parents. As time went on, Beth and her husband felt like
they had not worth and no means to be working and successful individuals in
society-especially the work force. Their parents had brainwashed them and
put them down so much that they actually believed they couldnt become
financially stable without their help.
8a: Weakening the Weak I believe means, that dont set your children up to
be weak. Give them a good foundation that you taught them when it comes
to lifestyle and money management. Your children are your clean slates so to
speak, dont spoil them, dont discourage them either. Support and right
teachings is what will do your child the best in the end.
8b: Kens father often told him I am not impressed with what people own. I
am impress by what they achieve. Im proud to be a physician. Always strive

Cassidy Nielsen

The Millionaire Next Door E-Portfolio Assignment

06-08-2016

to be the best in your field Dont chase money. If you are the best in your
field, money will find you.
9: The condo owners felt as though Mr. W. and his family did not live up to
the standards most of them did- judging on the outward appearance and
what the familys status seems to be. So they felt it necessary to discard
them somehow, the dog was just an easy target.
10: My personal perceptions about millionaires has changed quite
dramatically. It never occurred to me that wealth can be, and is actually
determined by other things, other than what you own. Its how much is in
your savings account and how much you have in stocks and retirement. My
mind was the typical image, fancy watch, suit, shoes, car, house, pool, cabin,
etc. I never thought that maybe someone who shops at Walmart and eats
humble meals at home could possibly be a millionaire! Its not all about the
appearance. The big hat, no cattle concept really struck me.
10a: The big hat, no cattle concept was interesting to me. Whenever I see a
fancy car on the street I always think, their house is probably so nice. Or I bet
they have the most expensive shoes and purses. But, in reality thats not
always the case.
I really enjoyed the chapters that referred to the car purchasing. I remember
back in high school, my finance teacher told us that if you can, avoid buying
new cars, just because their value drops significantly as soon as they are
driven off of the lot. Thats always stuck with me. I never thought that people
who actually had money to blow so to speak would listen to that too. Buying
a 3 year old car and searching the market is something I wouldnt picture a
millionaire doing. But I really enjoyed those chapters and I am excited to
apply them to my car purchasing experience.
10b: I can learn a lot from this book. Im so grateful it was part of the class to
have to read it. One thing I am looking forward to doing is building my
wealth. I dont spend my money- but I also dont invest. I would like to look
into investing and get going on that. I have a steady income, but I can also
have another form of income as well

SLCC Learning Outcomes:

This assignment really pushed me into an area I wasnt familiar with.
The millionaire world. You could even say the financial world. Reading this
book and answering the comprehensive questions really makes you think
about all of the concepts this book talks about and make you want to use it
in your real life situation. This assignment has helped me realize that when it

Cassidy Nielsen

The Millionaire Next Door E-Portfolio Assignment

06-08-2016

comes to finances you need to be educated and you also need to be creative
with your money, how you spend it, how you save, how you can multiply it,
etc. Money is some serious business and this assignment brought all of that
into reality.
Sometimes you have to be critical in your thinking and critical on how
you or your spouse spends money. Its not always fun looking at yourself and
evaluating your flaws. This assignment makes you look at yourself in the
mirror and ask, do I earn money just so I can spend? Or, do earn money so I
can make something else it and I can use for the future.
Learning the knowledge about finances and how to manage money is
also very vital to how you interact with professionals in the business, or just
in the world. Acting professional and knowing what youre talking about is
very important. When you walk into a bank expecting a home loan or a car
loan, you can show them you mean business because you know what youre
talking about. Or if you are trying to negotiate on something for a price, you
will have more knowledge under your belt so you can make wise decisions.