{"id":2283,"date":"2017-11-13T09:38:14","date_gmt":"2017-11-12T23:08:14","guid":{"rendered":"http:\/\/adelaideprivatewealth.com.au\/uncategorised\/meet-the-non-conspicuous-saver-and-investor-7\/"},"modified":"2017-11-13T09:38:14","modified_gmt":"2017-11-12T23:08:14","slug":"meet-the-non-conspicuous-saver-and-investor-7","status":"publish","type":"post","link":"https:\/\/adelaideprivatewealth.com.au\/meet-the-non-conspicuous-saver-and-investor-7\/","title":{"rendered":"Meet the non-conspicuous saver and investor"},"content":{"rendered":"
The\u00a0Millionaire Next Door<\/em>, a long-time personal finance bestseller that has found a place in the bookshelves of generation after generation of investors, has turned 21.<\/p>\n<\/p>\n In 1994, late US academics Thomas Stanley and William Danko first published their telling blueprint for the quiet accumulation of wealth in an understated, non-showy fashion. This is the opposite of the get-rich-quick approach.<\/p>\n Based on comprehensive surveys over some years plus face-to-face interviews of hundreds of wealthy individuals, Stanley and Danko wrote that \u201cprodigious accumulators of wealth\u201d (PAWs) are typically modest in their spending habits; they don’t tend to look like rich.<\/p>\n By contrast, conspicuous spenders are prominent among a group that Stanley and Danko tagged as \u201cunder accumulators of wealth\u201d (UAWs). In other words, they only looked rich.<\/p>\n Under-accumulators of wealth had a low net worth given their incomes. And they tended to spend more time looking for a new car than considering a new investment.<\/p>\n The size of person’s house or make of car is not an accurate reflection of wealth \u2013 far from it. That’s the bottom-line that should serve as a reminder to anyone who is tempted to try to keep up with high-spending neighbours.<\/p>\n Of course, the label \u201cmillionaire\u201d used to be described as someone who was truly wealthy. (The research was based on households with a net worth of $US1 million.) But much has changed over the past 21 years including how far a million dollars will stretch.<\/p>\n Just think that Sydney and Melbourne’ median house prices in 1996 were about $210,000 and $130,000 respectively. Now Sydney’s median house price is over $1.1 million and Melbourne’s is over $800,000.<\/p>\n Certainly, millionaires aren’t what they used to be in dollar terms. The central point in Stanley and Danko’s work is that they were researching what makes a highly-successful wealth accumulator as against the not-so-successful. The actual dollars involved are incidental to their case.<\/p>\n Careful budgeting and spending habits \u2013 trying to spend well under what you earn \u2013 are critical foundations for creating and keeping wealth. This is even more important when investment returns are subdued and Australian wages growth remains at a record low.<\/p>\n Are you a non-conspicuous saver and investor or a conspicuous spender? It’s hard to be both.\u00a0<\/p>\n If you would like to discuss anything in this article, please call us on |PHONE|.<\/p>\n \u00a0<\/p>\n Written by Robin Bowerman, Head of Market Strategy and Communications at Vanguard.<\/strong><\/span><\/p>\n Source:<\/strong><\/span> Vanguard Investments Australia Ltd (ABN 72 072 881 086 \/ AFS Licence 227263) is the product issuer. We have not taken yours and your clients’ circumstances into account when preparing this material so it may not be applicable to the particular situation you are considering. You should consider your circumstances and our Product Disclosure Statement (PDS) or Prospectus before making any investment decision. You can access our\u00a0PDS\u00a0or\u00a0Prospectus\u00a0online or by calling us. This material was prepared in good faith and we accept no liability for any errors or omissions. Past performance is not an indication of future performance.<\/span><\/p>\n \u00a9 2017 Vanguard Investments Australia Ltd. All rights reserved. <\/span><\/p>\n Important:<\/strong><\/span> Any links have been provided with permission for information purposes only and will take you to external websites, which are not connected to our company in any way. Note: Our company does not endorse and is not responsible for the accuracy of the contents\/information contained within the linked site(s) accessible from this page.\u00a0<\/span><\/p>\n<\/p><\/div>\n<\/p><\/div>\n<\/div>\n
Reproduced with permission of Vanguard Investments Australia Ltd<\/span><\/p>\n
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