Hi, I need help with essay on The Economics of Personal Finance. Paper must be at least 750 words. Please, no plagiarized work!
During the period when the authors of ‘The Millionaire Next Door’ i.e. Thomas Stanley and William Denko were focused on identifying the key secret factors of how people get wealthy, they had discovered various types of offbeat aspects. According to their observation, a majority of people from upscale neighborhoods do not possess enormous wealth. Moreover, it has also been found by the authors that a majority of people with enormous wealth do not spend their life as upscale neighborhood (Stanley and Danko 7-69).
In this concern, the authors have determined a number of denominators that are likely to demonstrate the living standard of the upscale neighborhood. In this context, it has been recognized that the effective allocation of money and time along with ways that are conducive to be wealthy can be considered as one of the major denominators, which enables the neighborhood to strengthen their personal finance. Moreover, the people belonging from the upscale neighborhood are likely to live well below their means which has further been witnessed to be addressed by the authors within the book. According to their observation, it has also been recognized that the upscale neighborhoods generally consider higher importance of their financial independence than displaying higher social status within a particular community (Gitman, Joehnk and Billingsley 27).
Correspondingly, the authors of the book have also stated that the age and income level of the person has been considered as the major determinants regarding the amount a person should be worth. According to their observation, the authors have critically determined that older population with higher level of wealth have accumulated significantly higher amount of wealth as compared to the younger and lower-income individuals. The discussion of the authors has also brought