451-The Millionaire Next Door Wealth Index: How Do You Stack Up?
Radical Personal Finance
Joshua J. Sheats, MSFS, CFP, CLU, ChFC, CASL, RHU, REBC, CAP
4.4 • 1.9K Ratings
🗓️ 12 April 2017
⏱️ 19 minutes
🧾️ Download transcript
Summary
The Millionaire Next Door Wealth Index:
"Multiply your age times your realized pretax annual household income from all sources except inheritances. Divide by ten. This, less any inherited wealth, is what your net worth should be."
Transcript
Click on a timestamp to play from that location
| 0:14.4 | Welcome to Radical Personal Finance, the show dedicated to providing you with the knowledge, skills, insight, and consistent daily encouragement you need to live a rich and meaningful life now, while building and working on your plan for financial freedom in 10 years or less. Fighting the sniffles today, so today's show is going to be extremely short and to the point. |
| 0:20.4 | But I want to talk with you about the Millionaire Wealth Index. |
| 0:27.0 | I'm drawing this from the well-known book The Millionaire Next Door by Tom Stanley and William Danko. This seminal work was |
| 0:35.2 | published about 20 years ago. In fact I just realized that they published a |
| 0:38.8 | 20th anniversary edition which I have not yet gotten trying to look up and get a copy of the 20th anniversary |
| 0:44.6 | edition, to see how they've updated that since the passing of Dr. Tom Stanley back in 2015. |
| 0:51.7 | Interested to see how they've updated the research, interested to see if there have been |
| 0:54.8 | any changes that have occurred since then. |
| 0:58.2 | In the beginning of the Millionaire Next Door, the authors talk about how to define the wealthy. |
| 1:03.0 | After all, they're writing a book about the wealthy. |
| 1:05.1 | The subtitle of the book is called The Surprising Secrets of America's Wealthy. |
| 1:09.0 | And they talk about some different ways to discuss and to categorize wealth. |
| 1:14.8 | This is not actually an easy question to answer. |
| 1:19.1 | Words have meanings depending on where we are. We ascribe the meaning to a word based upon our own personal |
| 1:26.1 | experience, our own personal knowledge and our own personal use of the word. I do this every |
| 1:29.8 | day. And my little intro there that you just heard where I said show dedicated to helping you to live a rich life now |
| 1:37.0 | While building a plan for financial freedom in 10 years or less |
| 1:41.6 | Depending on how you're stumbling into that slogan, you'll |
| 1:44.6 | interpret that differently. For example, I personally live a very rich life now, and |
| 1:51.4 | I want you to live a rich life now. And I want you to live a rich life now. But some people define that term |
| 1:55.9 | rich in the context of driving a luxury automobile. I have I place a lot more emphasis |
| 2:02.1 | on having an intellectually rich life than I do on driving a luxury |
... |
Please login to see the full transcript.
Disclaimer: The podcast and artwork embedded on this page are from Joshua J. Sheats, MSFS, CFP, CLU, ChFC, CASL, RHU, REBC, CAP, and are the property of its owner and not affiliated with or endorsed by Tapesearch.
Generated transcripts are the property of Joshua J. Sheats, MSFS, CFP, CLU, ChFC, CASL, RHU, REBC, CAP and are distributed freely under the Fair Use doctrine. Transcripts generated by Tapesearch are not guaranteed to be accurate.
Copyright © Tapesearch 2025.