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Thomas Stanley, who also wrote such great books as Stop Acting Rich and Start Living Like A Real Millionaire and The Millionaire Mind, also wrote a book about millionaire women? ItвЂ™s called Millionaire Women Next Door. My main criticism of the PAW/UAW calculation is that the whole concept is based on comparing one person's position to other people's positions.В I think this should be, at best, a point of interest.В What really matters is understanding your current financial position in relation to your desired timeline of financial and life achievements! The best way to do this is to regularly work through the financial planning process and periodically run long-term financial planning projections, including those that model market volatility and stress-test your financial plan.If youвЂ™re an avid personal finance geek like me, you probably are well aware of The Millionaire Next Door (one of the four books that changed my financial life). Adopting a more diversified portfolio approach pre-crash would have given her a lower PAW score initially, but would have protected her wealth through the downturn. In 2001, I remember meeting with a new client, a young emerging executive,В who had lost more than $1,000,000 of value in her company stock over the previous year's market crash! She likely would have qualified as a PAW the previous year, but in 2001, she was a UAW due to her portfolio's heavy concentration in her company's stock. Stanley's model doesn't address the quality and structure of someone's net worth, or how sound it is in the face of different challenges. Stanley's writings are well worth reading because they do an excellent job of addressing critically important topics:В your financial behavior and mindset! However, while I think his model for calculating PAW/UAW status is an interesting gauge, it's not perfect.ДЄs a financial advisor, IвЂ™ve had the opportunity to see many вЂњmodelsвЂќ of wealth accumulation over the years for some people, the timeline is slow and steady, while other people hit a career jump or level of business success later in life. StanleyвЂ™s characteristics and behaviors provide excellent food for thought for anyone wanting to improve their financial position, and overall, I think Dr. That statistic may change if you study the top of the wealth pyramid, but the point is that even if people werenвЂ™t born into money, they still have the opportunity to build wealth!Дr.

Stanley made the point several times in his writing that 80% of America's millionaires were first-generation rich-they did not inherit their wealth. It's important to keep in mind one other finding: Dr. Those UAWs then do not have the option to consistently save and invest their income for the future. Stanley typically found that UAWs exhibit the opposite characteristics of PAWs.В He emphasized his findings that UAWs often 'act rich' and live outside their means, even falling into debt to live such a lifestyle. The really brilliant millionaires are those who selected a vocation that they love-one that has few competitors but generates high profits.' ( Millionaire Mind,В 21).Дr. If you are creative enough to select the ideal vocation, you can win, win big-time. Stanley's opinion of 'the right occupation?'В Stanley writes, 'After studying millionaires for more than twenty years, I have concluded that if you make one major decision correctly, you can become economically productive. Number seven, in particular, could be viewed as quite subjective. Stanley identified them as behaviors and attributes that were common among those who had achieved a high level of wealth compared to their peer group.

They are proficient in targeting market opportunities.ДЄlthough these traits do not guarantee wealth, Dr. Their adult children are economically self-sufficient. Their parents did not provide economic outpatient care. They believe that financial independence is more important than displaying high social status. They allocate their time, energy, and money efficiently, in ways conducive to building wealth.

Stanley's research identified seven characteristics of PAWs:

Millionaire next door paw