Dr. Sarah Stanley Fallaw on The Next Millionaire Next Door | Afford Anything Podcast (Audio)

[@frankish5314]

Wonderful interview. This made me think about my journey. I came from a relatively impoverished upbringing in post WW2 London, UK. I went from a C/D grade student at 13 years old when my Dad sat me down and laid out why an education was my key to success. We also had very little money and most things were bought on credit. The very next day after my Dad spoke to me I went to each of my teachers and told them I wanted an "O'level" in all of my subjects. They literally laughed at me. The peer pressure to NOT do well at school was also huge. I became one of the school nerds and was bullied as a result. Somehow I managed to push through that and became one of 3 kids from my school to go University. In 1997 I emigrated to the US. I have always been extremely frugal (more derision for being a "tightwad"). Today I still drive my 1999 Dodge Neon, live in a paid for house and have a net worth of about $3M. I retired 5 years ago at age 52.

[@SorryIStomp]

Frank Hinde amazing

[@michaelwoods4495]

Congratulations! You were right and the naysayers and peer-pressures were wrong. I wonder how they're doing now...

[@leonormuller4442]

Thank you so much or sharing your inspirational story!

[@frankish5314]

@@leonormuller4442 Thankyou Blair, Michael and Leonor. Actually, yes it might sound amazing but it really isn't. My salary was not that great when I first emigrated (about $53,000 per year). But I saved like mad, bought a house with rental property on it and out everything I could into Stock market ETF's.. Of course the Bull market was huge but after 16 years the house was paid for and I had $1.25M saved. I have double that today but have not earned any money except the rent for the last almost 7 years. If I can do that from almost nothing a lot of people can do even better.

[@kristentrutt1969]

Jk

[@chris14091975]

This is probably one of the best interviews in personal finance ever. Sarah simply the best personal finance person i have ever read.

[@HerAeolianHarp]

Another excellent podcast. Paula deserves as many followers as possible. She is astute, warm and thorough.

[@theresekirkpatrick3337]

I grew up poor. But join the army to succeed. My husband read your dad’s book many years ago. Paid off our house by 43 and at 48 with his online job we up and moved to a beautiful place in another state. We could’ve been at a million by now but Realestate in paradise is almost double to where we moved from. We have 0 debt no degrees.

[@theresekirkpatrick3337]

@Frugality of JP he’s always been in sales. 25 years in the new home lumber business, 7 years ago quit there and now sells colt (collectible ) firearms. Never know when this crazy government is going to try to take our rights to sell and bare arms. So we’re prepared. Best of luck

[@TRINITY-ks6nw]

Yeah!!!! I love success even someone else's

[@evadeanu1]

You are lucky with your husband for looking after finances. Others are mostly spenders and it could be difficult to actually save anything

[@johnbrown1851]

​@@theresekirkpatrick3337Maybe they will ban assault rifles, but regular guns? Stop being paranoid.

[@karen53164]

PAW here! The Millionaire Next Door book inspired me and helped me to change my life. I've read it many, many times.

[@michaelswami]

I drive a 2008 Dodge Ram pickup. My business partner and his son are always telling me I should get a new truck. I always tell them I’m just not wired that way and I will never get a new truck, when I change, it will be another used truck. You did a great job with this interview. I loved it.

[@jenniferressmannwriter]

We drive an old suburban! Love that truck. 65K+ for a new one!? 🤯

[@dawnmurray6945]

Excellent interview! I absolutely love the book Millionaire Next Door and I’m looking forward to reading Dr Sarah Fallaw’s book as well. Be blessed

[@lvickers966]

"Grad School is the new college " - i have seen this become quite true even in my industry, and most of us aren't rich

[@minimalmillionairemom]

Love this interview! I read The Millionaire Next Door a couple of years ago and realized this is us.

[@bondjames-bond7664]

Any tips/advise for me , a broke guy???

[@theresekirkpatrick3337]

We used it too. Best Advice if you use a credit card pay it off immediately do not carry debt for spending. Used the envelope system It works because you learn to live within a budget. Because when you run our of cash you can’t spent what you don’t have.

[@videomdify]

Paula’s questions are very thoughtful and helpful. Thank you.

[@quartytypo]

The powerful revelation of THE MILLIONAIRE NEXT DOOR is that is showed ordinary people they too could become a millionaire. They didn't need a prestigious education, born to a wealthy family, own a large business or manufacturing plant. That was people's idea of a millionaire before the book.

[@YoungDen]

True indeed

[@Squintillions]

Thanks for this podcast, read the Millionaire Next Door book a couple months ago. Really interesting to hear the follow up. Keep the podcasts coming. I’m on the way to be the first millionaire in my family!

[@sergiohernandezplaza7350]

Hola

[@kerrygagnon467]

Sarah, I read your fathers book shortly after it was published. It was a turnstile for me. Although, I was using some of the idea's in the book before I had read the book, the book brought me full circle. I have recommend this book to everyone since I read it. Look forward to reading the updated book.

[@gerardosaldana9207]

Paula is such a great interviewer!! Awesome episode!

[@jaetguz]

Recently picked up the "Stop Acting Rich" book. Pure wisdom on modern day money realities.

[@findyourcreativejourney488]

thank you for this awesome podcast! :)

[@JGULLIF]

November 1998 my wife and i marry. In the preceding year we jointly read the MND passing it back and forth ... on the day we married we were standing in line in the cook county building in Chicago awaiting our turn to get married ... with a net worth between zero and less than zero ... we had already put into action the strategies ... 22 years later ... all i can say is that it works. Clearly, we have more money than I EVER could have imagined. We are modest householders in the Chicago suburbs and, yes, we are millionaires. Never argue about money ... in fact, its an integral part of our relationship and brings us together .... an open matter and a source of pride between us. Danko and Stanley were really quit smart ... and i thank them.

[@brentshuffler1234]

How lovely that the original co-author's daughter has become a doctoral graduate in her area and continued her father's seminal work! One other dimension that needs to be considered is NET PAY after taxes and statutory deductions (e.g., contributions to Social Security or National Insurance Schemes, as they are variously called in other countries).

[@MariaGarcia-gj5ie]

Loved this❤

[@KpxUrz5745]

Accurate information. What's the point of flashiness and showing off? It just wastes tons of money. Just remain frugal and keep investing regularly. Drive a used car. Few vacations. Live well beneath your means. I grew up poor, worked hard in school, inherited very little, and kept on reading and learning about stocks and other markets. Now in upper 3% of wealthy Americans. None of it is about privilege. It's all about consistency, not overspending, and finding ways to slowly invest that work for you.

[@michaelwoods4495]

Millionaire? A million dollars isn't all that much any more, but it's a lot better than not having it!

[@bryanwilliams242]

A million dollars is not what it used to be, but it’s certainly more than most people have. A recent study showed that 40% of Americans do not have the cash to cover a $400.00 emergency. The median retirement savings for Americans is $65,000.00, so a million dollars is quite significant in relation. The first million is the most difficult to save. Each million thereafter gets easier.

[@Bran08Eman]

Yeah it isn't much these days. As a net worth, something you accumulated by just living your life and making prudent decisions. Some have $10M assets and $9M debt. Another has $1M assets and $0 debt. Everyone is different.

[@mikeroyce8926]

In the UK, I reckon that you have financial security when the home you live in is paid off and the household has £1 million (Approximately 1,360,000 USD) in investments. Using a "safe withdrawal rate" of 3.25%, this would give an income of £32,500 (Approximately £44,200 USD). This is slightly above the median household figure of about £31,000 (possibly this figure is after taxes). If someone qualifies for the full UK state pension then a bit more than £9,300 (12,600 USD) will be added to this per retiree. In the UK we dont have to pay for health care, but the family home is likely to have be sold if the surviving spouse needs long term care in a residential care home.

[@arnoldludere]

Awesome podcast 💯👌🏽, insightful

[@fkc2107]

Good speaker with amazing brain!

[@wagnerpaivafernandes]

Amazing interview

[@dansmith1743]

Interesting interview. I liked the. Awareness on what you spend Money and the use of credit cards will make you question was the purchase worth it.

[@idontwantachannelimjustcom7745]

For key take away number 3 let's check my Amazon cart. The total is .01% of what I spent all of last year. You are the average of the 5 people you are around or talk to the most. I spend most of my time watching KZbin and listening to podcasts. I have some audio recording equipment in my cart. Yes considering the name that is ironic. There is also a DIY stem toy that could inspire content. I'm just above the low end of the income range given in the show but I have an 80% savings rate. Paretos law says that I should give up the idea of content creation as a side hustle and get a better primary job. The math says I should get a lower income job closer to home not work overtime and do content as a side business. Any thoughts? 25% of my spending last year was on commuting. An entry level job closer to home is break even minus the %10 of my income that goes into a 401k, or as I currently see it "a black hole that I cant touch for 35 years"

[@looktothefuture84]

I'd say that depends on your attitude to your side hustle and whether your main income is a career path or just an unskilled job? Is the side hustle just so, or something you hope to turn into a business? If you're not a high earner then there's even greater potential (and incentive?) for a 'side hustle' to become your full-time gig, eventually.

[@raymondnoya5653]

I'm reading her book

[@bondjames-bond7664]

Hows it

[@ciaradonnelly4627]

That age x income divided by 10 equal net worth was almost exact for me.....weird

[@brentshuffler1234]

Comparisons based on gross income are extremely misleading because they ignore the huge impact of being in a city or country with ZERO personal income-taxes (e.g., Antigua, Cayman Islands, Alberta in Canada, Florida in the U.S.A.) versus high-tax locations (E.g., Montserrat, Barbados, Germany and Scandinavian countries).

[@llouvakates]

50:40 teaching kids

[@Bran08Eman]

Millionaires: There are numerous turtles and very few hares. The media promotes the hare, i.e. extraverted, well dressed, fancy car and influential friends types. Turtles come in all shapes and sizes and more suited to introverted behavior.

[@cheriegrishin2086]

I cannot get past the idea that they interviewed people in affluent neighborhoods instead of broadly interviewing a sample from diverse neighborhoods. Huh??

[@YoYo-gt5iq]

Once it was her writing the MND blog I found it to be too technical and dry. There was no story to the story

[@llouvakates]

21:11

[@ricolasalle8836]

Really love how she just glossed over the fact that their equation of expected wealth doesn’t work unless you’re over a certain age that is never specified? For someone who works with data... You would think that this wouldn’t be so casual. I’m also annoyed by the fact the study was based on affluent zip codes... when the premise is “the millionaire next door”. this makes absolutely no sense and it undermines the intent of the book as well as the data they’ve collected. I feel like they’ve cherry picked data that backs up an ideology and creates the conceptual self-made millionaire success story that was originally fueled by reaganomics and the American dream in the mid 80’s early 90’s.

[@ricolasalle8836]

I feel like this ideology is fundamentally counter-intuitive to a successful economy as well as a happy and healthy society. The millionaire next door instilled the idea of living a modest life in a cookie cutter aluminum subdivision home. Yeah you can shop at Costco and Walmart to save money... but look where that’s gotten us. Look at Amazon siphoning the life out of small business. This lays the groundwork for the modern day conservatism that is actually tearing the world apart. Capitalism is an auroboros... the snake that eats their own tail, consuming themselves in the end. This is not it for me

[@Elizabeth-mt6bb]

@@ricolasalle8836 so what's your suggestion? Spend everything you make and be in debt?

[@ricolasalle8836]

@@Elizabeth-mt6bb aren’t you already in debt?

[@Elizabeth-mt6bb]

@@ricolasalle8836 no I have zero debt

[@chemquests]

Is the interviewer a robot or the voice for robo-calls?

[@kiwikim5163]

I know. It's like she recotds her questions anf sends them to the interviewee.

[@incomecuan2177]

Siapa yg kesini gara2 insta storynya bang Radit?

[@SirenaSpades]

Sarah, you sound great and I can't wait to read the follow up book. But whoever is doing the interview sounds like a robot :( I really can't even stand to listen.

[@quietsignal]

Two years later...survey of American men...would you date this woman? Absolutely...for one night...

[@panjiwjati]

Raditya dika followers?

[@monicasmadhouse9278]

I don't trust a women who didn't read the book on the same topic...not a very good RESEARCHER 😅😢🤣😂

[@geofferypmeyers]

I’m 28 years old and I make $49,000. My predicted net worth according to their formula is $137,000. Who the hell making $50k for only a few years has a net worth of $130k?? Edit: Kept listening and they said the equation doesn’t work well for those under 45

[@dansmith1743]

Sarah Meyers buying a new house or condo from a developer on a fixed rate loan. can raise your net worth. Assets less liabilities. Developers will make deals on financing to sell their homes, plus since they are new, there will be less repairs than a used home. Each payment you make lowers the interest payment on a loan and builds equity, whereas renting an apartment, the rent goes up every year. If you don’t like the upkeep of a yard, then a condo, townhome, or zero lot home. Save 20% per year. 10% to your 401k and 10% to a low fee EtF like from vanguard . In 2 to 3 years you will have enough for a down payment., as well other expenses. Some expenses will go up, like property taxes , which can be written off on you tax return and house insurance would go up for certain regions with a history of tornadoes , hurricanes. This is tied to the value of your home, increasing. Renting an apartment doesn’t increase your net worth.

[@leonormuller4442]

@@dansmith1743 Thank you Dan for the useful information regarding developers. I was under the impression that purchasing an older home was a good idea, after reading your advise I am reconsidering looking at new homes.

[@dansmith1743]

Leonor Muller : interest rates are so low now to. Also, look at property value taxes in the neighborhood you want to buy by square footage. if a developer’s agent is to high pressure then go somewhere else. Plenty of developers building now. Also, remember that a buyer’s real estate agent works more for the seller, than for you. Since they get the commission from them. Take your time. You don’t have to buy the first house you see and . If you prequalify, then the seller is interested in you as a potential buyer. Find out wa

[@dansmith1743]

Sarah Meyers most reputable developers have a warranty on workmanship for a certain number of years. So another thing to check before you sign.

[@Bran08Eman]

Under 45, the study shows focus on day to day budgeting and frugal behaviors. As a "Procurement Officer", attack your living expenses by investing in a home, pay it off ASAP. With your no mortgage living expenses, be the "CFO" and invest and grow asset portfolio. You are well well on your way on beating the net worth marker equation.