ofcmetz wrote:The Millionare Next Door book had a lot of info on the habits of the rich. It suffers from survivorship bias, but is still an entertaining and enlightening read.
Maybe in context the book benefits
from survivorship bias in the sense that understanding the habits of people who maintain their wealth is of more value?
I haven't read the book the OP mentioned but have read a couple others on the subject, including The Millionaire Next Door
I think people have pretty well captured the essence of what a person can apply.
-Live below your means (sometimes to the point of being a cheapskate). Moderation in clothing, automobiles, and homes seem to top the list.
-Extend your forethought years or decades into the future
-Maximize your unrealized income (minimize your tax liability). For the typical Boglehead that would equate to growing a substantial, tax-efficient investment portfolio.
Hollywood, TV, and fiction have created somewhat of a stereotype of the rich guy smothered in gold lighting $100 dollar cigars with $100 bills. I suppose that happens sometimes, but the wealthy people I know are no where near as crass about it.
If I recall correctly, most of the subjects in The Millionaire Next Door
were "self-made" with median incomes somewhere around $60K (in the early 1990s, maybe translates to 70s-80s today). My suspicion is that many of the habits are causal or at least supportive of building wealth gradually in the long haul. Imitating some of them sure has helped me (I'm no where near financially wealthy in the objective sense, but the arrow is pointing up much more so than in my inattentive youth). Whether the character traits behind the habits are innate or acquired I don't know for sure.
Don't do something. Just stand there!