Chapter 2 - Frugal Frugal Frugal

"They allocate their time, energy, and money efficiently, in ways conducive to wealth."
 
They became millionaires by budgeting and controlling expenses, and they maintain their affluent status the same way.  (40)
 
Question 1: Does your household operate on an annual budgets?
Question 2: Do you know how much your family spends each year on food, clothing, and shelter?
Question 3: Do you have a clearly defined set of daily, weekly, monthly, annual, and lifetime goals?
Question 4: Do you spend alot of time planning your financial future?
(40-46)
 
One earns to spend.  When you need to spend more, you need to earn more.  (52)
 
To build wealth, minimize your realized (taxable) income  
and maximize your unrealized income (wealth/capital appreciation without a cashflow).
(55)
 
No pension plan... never had a pension plan.  (66)
 
Will I ever be able to retire?  (67)
 
If you're not yet wealthy but want to be someday,
never purchase a home that requires a mortgage that is more than
twice your household's total annual realized income (68).