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Explain the following two (2) concepts addressed in The Millionaire Next Door:

Big Hat, No Cattle


You have lots of valuable items, but no money
Go to Hell Fund
You accumulate so much money, you can live on your income for over 10 years,
if you were to lose your job
. In the examples of Mr. Richards (PAW) & Mr. Ford (UAW), both men are close in age & yearly
income. Explain why Mr. Richards has nearly five times the net worth of Mr. Ford. (Be specific).
Because he doesnt spend as much as mr. ford in regular household items, mr. ford lives above
his means, while mr. richards lives below his.
Provide short answers to the following three (3) questions:
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?
Kept being frugal, and cutting out coupons
Why would someone who is a millionaire need to budget?
That is how they became wealthy, so that is how they stay wealthy
In the example of Theodore Teddy J. Friend and his parents, answer the following two
questions:
The book describes Teddy as being possessed by possessions. Explain this
comment
He was fascinated in having the best in everything
What was the small change Teddys parents could have made that would put
them in the millionaire category?
Invest money from their smoking habits instead of smoking
Mr. Rodney is a high-income/low-net worth corporate manager. Explain why he is described as
having sold his financial independence.
He doesnt hold onto money, he spends when he has money
Why did Mr. W. W. Allan decline the gift of a Rolls-Royce?
Products change lifestyles
Regarding Economic Outpatient Care (EOC), answer the following four (4) questions:
Define Economic Outpatient Care (EOC).
Paying for the adult childrens lifestyle after they leave the house
Upon learning his parents were donating their property to the local private college, describe
Jamess reaction.
He assumed, thats my property!!!, they cant sell that!!!
Why was Jamess response predictable?
Because he had been receving gifts as an adult from his parents

As illustrated in the example of Henry & Josh, what is the fundamental rule regarding wealth
building? (Be specific.)
Whatever your income, always live below your means
Regarding Affirmative \Actions, Family Style, answer the following three (3) questions:
In the example of sisters Ann & Beth, describe the consequences to Beth & her
husband from receiving EOC
The parents believe that Beth and her husband are inferior ones. While ann is perfect
Explain the concept weakening the weak.
You give the financially dependent child more money, making them rely on you even more.
What did Kens father tell him often? (be specific.)
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 best in your field, Dont chase money, if youre the best in
your field, the money will find you
Explain the root cause for the conflict between Mr. W & the residents of tyhe
vacation condominiums. (HINT: its not because of his dog)
It is because he had the monopoly on the specific design of housing in the condominiums.
Now that you have finished reading The Millionaire Next Door, Answer the following three (3)
questions in a minimum three (3) paragraphs.
How has your perception of millionaires changed?
It has changed from the millionaires living lives of glamor and big houses to living lives of being
financially disciplined and frugality. It is living well below their means. They live to have money
later, not now. They try to be ready for the future, as opposed to enjoying the present time. They
budget to help them know how much money they can afford to spend, while keeping the most
money possible for future finances
What are the two (2) concepts that you found most useful
They Live well below their means, they budget to help them know where they are spending
there money, and so they know how much they are saving towards retirement. This also helps
the millionaires keep on track of their financial requirements for retirement.
Give a specific example of one small change you can make to improve your
financial well-being.
Not living such a high life, with my expensive phone and expensive clothes. I also have tons of
clothes that I never wear. I pay about $40 per month towards my phone, and that takes away
from my savings accounts to save money for college and retirement. I could also take away
some of my luxuries in life
Reflective Writing
Compose 2-3 paragraphs explaining how completing this assignment helped you achieve at
least two (2) of the SLCC learning outcomes:
Learning outcome #1
Students develop the knowledge and skills to become community engaged learners and
scholars. I have learned this learning outcome through the principles I can teach that I learned

in the millionaire next door. I have learned and can teach people about personal finances, and i
can have people learn how to save money, and eventually become a millionaire.
Learning Outcome #2
Students develop the knowledge and skills to work with others in a professional manner. I have
learned this through what advice and teaching lessons I can give others in a professional
setting, especially if they need the financial advice found in the Millionaire next door.