Customer Reviews

Getting Rich In America: Eight Simple Rules for Bulding A Fortune--And A Satifsying Life

5 star:		(15)
4 star:		(3)
3 star:		(1)
2 star:		(1)
1 star:		(1)

 

 

As the name states, this book explains how it is possible to build wealth AND achieve a satisfying life by following a few simple rules. There are no off-the-wall advice or get-rich-quick schemes offered here, unlike the material from some other "financial gurus". All of the principles presented in this book are logically sound and time-proven, but I hesitate to say "common-sense" because so few people actually practice them in reality.

For example, I think we've all heard about the power of compounding--and how it can turn a modest savings into a significant nest egg over time. However, very few people take this to heart and apply it to their daily money management decisions, because they feel it requires too much work or they feel helpless in controlling their expenses. What the authors do is demonstrate, by using specific examples and crunching the numbers, that even minor expenditures today can have significant economic impact down the road. They show that by making certain choices early on in one's life, nearly ANYONE can build a fortune in America. It truly doesn't require a genius or lots of luck to become rich today. Moreover, the authors point out that one doesn't have to sacrifice all of life's pleasures or live like a pauper in order to achieve financial security. All it takes is a little prudent savings and investing. If you believe in the opportunity to achieve wealth in this country, but have trouble getting motivated and taking action, this book is for you.

The chapter on investing is excellent. The authors explain how trying to beat the market is futile, and "safe" returns can be riddled with risk over the long haul (due to inflation). If you believe that you are just as capable of managing your investments as paid experts, you'll like this book.

Most people aren't aware of the return on education; I know I went to college just because it was the thing to do (and my parents wouldn't have it any other way ;) This book describes how increasing one's education level can substantially affect (negatively and positively) one's earnings. It's very interesting reading.

What this book also emphasizes, that most other financial advice books neglect to mention, is that living a good lifestyle is not only satisfying but also FINANCIALLY rewarding. Practicing good ethics enables a person to feel good about him/herself (leading to a more productive life), and making healthy lifestyle choices extends your life (thereby allowing the power of compounding to work longer). If you want validation that doing the right thing and living responsibly is rewarding emotionally AND financially, then read this book.

The only point that I have a minor quibble with is: getting married is good for wealth building. I understand what the authors are trying to say, which (I think) is: being in a committed relationship and having a contributing partner can accelerate the wealth building process. However, I don't believe that the actual marriage contract is necessary for achieving wealth. While marriage may help some couples stay together, it can also provide a false sense of security for others (causing them to stop working as hard on maintaining the relationship). Some people choose not to get married because they have no desire to produce offspring, others do it to avoid the "marriage tax penalty". I think unmarried, committed couples are just as likely to build significant wealth (and live fulfilling lives) as married couples. Anyway, I'm being technical here, and what's important is that the authors do get their point across.

I really liked this book, and I am practicing all the principles described in it. I find my peace of mind higher than ever, knowing that I'm well on the path towards a secure future.

Imagine a book with the practicality of your high school home economics teacher, the wisdom of Ben Franklin, the financial savvy of Wall Streeter, written in the peppery style of an NPR journalist; thats what Getting Rich in America was for me.

These authors have actually lived their own advice and become millionaires; no hypocrisy here! Even those of modest means can choose to turn income into wealth by getting a good education, limiting their expenses, investing regularly, using the power of compound interest, and living a healthy lifestyle.

The special twist of this book is it's emphasis on living a happy rewarding life. A frugal lifestyle need not be barren or miserly. Financial freedom is not limited to the Bill Gates or Michael Jordans of the world. The authors are populists - encouraging all toward financial success. Much suffering in the world would be avoided by heeding the advice in this book.

This book presents the virtues of thrift, hardwork, family, and community espoused by Ben Franklin in a convincing Y2K format.

Most get rich books for popular consumption are based on gimmicks and raise false hopes among the gullible. Lee & McKenzie are different. They show how anyone, even low-income people, can gradually build a fortune without luck and without expert advice. They show how getting rich in America is a choice that anyone can make. It takes discipline, resolve, perserverance, and patience. It doesn't require any financial expertise or knowledge of the stock market. Every young person should read this book and follow its simple rules. It gives the lie to the widespread belief that you have to be rich to make money. It will build confidence in the free-market system.

Getting Rich in America by Dwight Lee and Richard McKenzie is a powerful statement of what anyone in this great country can do if they are willing to work rather than whine. And for those who really do want to get rich, this book provides a useful roadmap for how to do it. But the most important point about this book is that it is not just about financial strategies. The real message is that getting rich is more about living the type of life that will be meaningful and satisfying -- no matter how much money you have. Trying to get rich to live the good life puts the cart before the horse. But, it you live a good life--one of integrity, responsibility, and dependability, you can easily get rich. The message in this book is one that every parent would like to see his or her children live by. No doubt about it, this book deserves 5 stars.

In only five short pages (41-45), those who harbor the mistaken notion that they can't make it, or that poor Americans can't make it, can learn from Lee and McKenzie how a high school graduate who at age 18 and for the rest of his/her working career earning just $15,000 a year, or about $7.21 an hour for working the usual 40-hour week throughout the year, could build a fortune, i.e., in other words, "poor" Americans can retire rich.

Lee and McKenzie crunch the numbers for us and conclude: "No matter how you change the example, the point remains. Even many low income Americans have the chance to be well-off at retirement. All it takes is a willingness to work hard and an early appreciation of compount interest. [Ah, the value of compound interest. There's the nub.] Few Americans get rich in America by taking it easy, or by avoiding giving up something. Most well-off Americans who get rich do so by putting in, for some stretch of time in their lives, extra hours in school and on the job. Indeed, researchers have found that at least 26 percent of the income gap between the top and bottom 10 percent of all income earners in the 1973-91 period is explained by the fact that the top 10 percent of income earners simply worked longer hours each year."

Lee and McKenze say:

"For far too long, poor Americans have been presented with a defeatist message, that improvement is beyond their means and can come only from the goodwill of higher-income Americans. Not true. Poor Americans should look to themselves for their own improvement, where they can be the beneficiaries of 100 percent of their own efforts to improve their own lot. First, however, they need to believe in a prosperous future, and in the value that their savings, however, small, will bring over many years if invested wisely."

Lee and McKenzie note that low wage earners may indeed have limited options (if they chose to not extend their income through education). However, instead of working the usual 40-hour weeks, they can extend their work week by putting in overtime at their job or by getting a second job at the same rate of pay. To keep the illustration conservative, the authors assume that these workers would have to increase their work week by only 10 hours a week through age 40 (after which they would revert to the standard 40-hour week).

In other words, the authors assume that for 23 years these minimum-wage workers would work a 50-hour work week--which is what the average American worker worked in the late 1920s. (Note: the average work week in 1997 was about 35 hours for all workers and about 42 hours for manufacturing workers, according to Lee and McKenzie.)

Finally, the authors assume that subject workers would have half of their extra income to pay taxes (mainly in the form of Social Security taxes) and to boost marginally their standard of living. Assuming they are not paid at the overtime rate, they would save the rest of the additional income of $3.60 per hour of extra work.

And how much would they be worth at retirement? Drum roll...If they retired at age 65, their net worth would be $9.82 million assuming an appreciation rate of 15 percent [over and above inflation--and in today's dollars/today's purchasing power]. [You may argue, of course that a 15 percent rate of return is way too high]; But how 'bout $780,673 at an appreciation rate of 8 percent [over and above inflation]; or $262,638 at an appreciation rate of 5 percent [again, over and above inflation].

Not everyone will choose to retire at 65. If retirement is delayed until age 70, our "poor millionaires" could be worth $19.74 million [at 15 percent appreciation]; $1.15 million [at 8 percent appreciation]; or $335,201 [at 5 percent appreciation], according to Lee and McKenzie.

They say:

"Not bad...especially since we've not allowed for overtime pay...Do you think our saving requirements are too high for someone earning so little income? Then let's assume he works only 10 extra hours a month (or saves $36 a month), and then run the numbers. At a rate of return of 15 percent, he will have a net worth of $2.27 million at age 65 and $4.56 million at age 70. With an 8 percent return, he will have a net worth of $180,155 at age 65 and $264,707 at age 70. With a 5 percent return, he will have a net worth of $60,609 at age 65 and $77,354 at age 70."

Lee and McKenzie's message is clear:

* "Poor Americans should look to themselves for their own improvement, where they can be the beneficiaries of 100 percent of their own efforts to improve their own lot...."

* "All it takes (to become rich) is a willingness to work hard and an early appreciation of compound interest."

All this from pages 41-45. Do read it all; it will become your bible for a "satisfying life." ------------- This information has been submitted to the Free For All Editor of the Washington Post in a somewhat different format.

This book provides the most insightful and easy-to-follow set of guidelines for becoming wealthy in the 21st century. The authors recommendation to use index funds is both clever and timely. Even one year ago the strategy of buying diamonds (The Dow Jones Index) would not have been feasible because they did not yet exist. These authors are on the cutting edge both philosophically and in terms of the tools that are available to todays investor. There is no better book available for young people between the ages of 18-40. This book is "must-reading" for anyone interested in the stock market and should be read before Peter Lynch or any of the other stand-outs.

Terrific, no nonsense, easy-to-take advice on how to build wealth while enjoying a good life.What I especially liked is that their research proved that when you take responsibility for your own life, both personally and financially, ridding yourself of the ever-popular victimhood mentality, the benefits you can reap are truly unlimited. Bravo!

Organized, neat, and complete plan of action for the long-term investor

The eight rules reinforce which many people intuitively know. I bought this for my college age child and will buy another for my highschool age child. It clearly outlines the basics of creating a balance in life and how to reach financial security without the need to win the lottery. A great book for young people to refer to for many years. The examples are modern day issues which many of us face rountinely.

This book is wonderful! It is written in a style that everyone can understand and learn from. This book is really about how one's "lifestyle" has financial consequences. Great motivation to start saving and investing! I highly recommend "Getting Rich in America."