By Elyse Umlauf-Garneau, REALTOR® Magazine
You don’t need to be born to wealth, win the lottery, become a corporate CEO, or exist on tuna fish to get rich, according to Getting Rich in America–8 Simple Rules for Building a Fortune and a Satisfying Life by Dwight R. Lee and Richard B. McKenzie (New York: HarperBusiness, 1999; $25)
The authors say virtually anyone can amass wealth by following eight simple rules. Among their rules: Take the power of compound interest seriously, resist temptation, and take prudent risks.
Although much of the advice is extremely practical and probably familiar to you, it bears repeating. To create substantial wealth, you need to have discipline and create a long-term vision of where you want to be financially.
In the book, you’ll find exercises and methods of number crunching that aren’t mind numbing or inaccessible to a beginner.
Whereas other books use a chart to explain how your money grows, Lee and McKenzie offer real-life examples of average Americans who’ve amassed big nest eggs by living a frugal–and happy–life.
Also, if you’re really wondering whether that splurge purchase will really make a difference in the long run, the authors illustrate the long-term cost one of our most treasured status symbols–a Rolex watch. If the $4,000 you spend on the watch is instead stashed away and left to earn 8 percent a year, the authors say, in 30 years that one-time investment will be worth $68,983.