If you interact with any other human beings, you are involved in negotiations! At its heart, the art of negotiation is an interpersonal skill that can not only help you save money, but can make you a better friend, co-worker, partner, or boss. Too often we think one person wins and the other loses when negotiating. That is not the case! It is all about setting aside your own desires long enough to learn about another person. This episode will show you our top five tips to transform your personal and professional interactions for the better.

In this episode, you’ll learn:

• How to assess the numbers involved in a negotiation
• Practical tips on how to listen and understand
• When it’s ok to compromise, and when to press in
• Key secrets to being a likable person
• Questions to ask yourself when making a big decision

Research and resources in this episode:

• How to Win Friends and Influence People by Dale Carnegie
• Never Split the Difference by Chris Voss

Enjoy the Show?

• Sign up for the Financial Order of Operation (FOO) Online Course!
• Get FREE downloads full of financial advice from our Resource Page!
• Subscribe on YouTube or wherever you listen to podcasts.
• Send us your questions or share your story.

If you have any questions (or just want to say hi!), join the conversation on Facebook, Twitter, or Instagram!

There’s something special about millionaires that makes them different from the rest of the population. Success isn’t usually ingrained in your DNA; success is cultivated by maintaining good habits and working hard towards your goals. There are some habits that most millionaires share, and you can learn a great deal about success by studying the habits of successful people. Here are some of the habits and traits of millionaires, all based on research included in The Next Millionaire Next Door by the late Dr. Thomas Stanley and his daughter, Dr. Sarah Stanley Fallaw.

1. Reading

Millionaires spend more time reading than the general population, about 5.5 hours per week compared to 2 hours for everyone else. It’s common knowledge that successful people read more; reading makes you a more informed person, increases problem-solving skills, and increases our intelligence and comprehension of the world around us. Reading comes in many forms, such as online articles, magazines, newsletters, and short stories. You don’t need to be a bookworm to be an avid reader.

Another reason the time spent reading is so much greater for millionaires is because highly successful people never stop learning. In order to stay ahead of the curve, you’ve got to keep growing, learning, and improving. Reading helps keep you sharp and being well-informed will keep you ahead of your peers.

2. Less social media

There are great, productive uses for social media, but more often than not it’s a time waster. Millionaires spend about 2.5 hours per week on social media, and the general population spends 14 hours per week on social media! This means that the average person uses social media for nearly as much time in one day as a millionaire will in an entire week. The difference in social media usage is the most drastic difference in how millionaires and the average person spends their time. Social media usage is a very telling statistic; it means that millionaires, and successful people, are much more efficient with how they use their time. They keep social media to a minimum, while the time the average person spends on social media seems excessive.

Not all social media is bad or a waste of time. On LinkedIn, for example, you can form connections that could lead to a job or other career opportunities. Other social media networks can be used for productivity rather than wasting time, but spending an excessive amount of time on social media is usually not that productive.

3. Exercising

It probably comes as no surprise that millionaires exercise more than the average American. Staying in shape prolongs life expectancy and exercising releases endorphins that lift your mood and increase feelings of positivity and happiness. Everyday Millionaires, by Chris Hogan, found that 82% of millionaires considered themselves optimists. Exercising is one of those habits that helps people feel optimistic – about their health and life in general.

The great thing about exercising is that it’s free. You don’t need any expensive equipment to get started, and you can exercise inside or outdoors. Exercising is not only a habit of successful people, it will also make you healthier and more positive.

4. Caring for family

Probably the most surprising habit of millionaires is the amount of time they spend caring for their family. We normally think that financially successful people spend most of their time at work and probably don’t get to see their family very often, but the research shows the opposite is true. Millionaires spend 8.5 hours per week caring for their family and the average American spends just 3.6 hours per week caring for family members.

This shows that financial success doesn’t mean spending days and nights at the office and rarely seeing your family. Millionaires get more quality time with their family than the average person. The numbers show that millionaires don’t work less – they work 38.4 hours per week compared to 32.1 for the average American – which means they are more efficient with their time. Spending less time on social media and other time-wasters allows them to focus on more important things, like spending time with family and reading.

There’s so much we can learn from how millionaires think and behave. Our most recent show, “5 Steps to Becoming a Millionaire!,” explores even more millionaire behaviors and habits. Data used in the show comes from our first ever Money Guy Wealth Survey, a survey of our clients about habits, behaviors, and what has made them successful. Watch it now on YouTube below.

Have you ever wanted to ask a millionaire how they built their wealth? In this episode, we asked and they answered! We work with hundreds of financially successful people everyday. They were kind enough to help us create this episode by sharing their wisdom through The Money Guy Wealth Survey. It gives us a glimpse into how millionaire minds work and how all of us can implement these simple steps to create abundance in our own lives.

In this episode, you’ll learn:

• The biggest lie the public is told about becoming a millionaire
• The dollar amount millionaires consider “wealthy”
• Lifestyle choices and habits that lead to success
• What advice millionaires would tell their 25-year-old selves

Research and resources from today’s episode:

• 5 Levels of Wealth: Which Level Are You At? (The Money Guy Show)
• The Millionaire Next Door by Thomas J. Staley, Ph.D and William D. Danko, Ph.D
• The Next Millionaire Next Door by Sarah Stanley Fallaw Ph.D
• Everyday Millionaires by Chris Hogan

Enjoy the Show?

• Get FREE downloads full of financial advice from our Resource Page!
• Subscribe on YouTube or wherever you listen to podcasts.
• Leave us a review on Apple Podcasts.
• Send us your questions or share your story.

If you have any questions (or just want to say hi!), join the conversation on Facebook, Twitter, or Instagram!

You asked us to share our top recommendations for personal finance books. We give these books to our interns, new team members, and highly suggest them to anyone in The Money Guy family.

By reading these books, you’ll gain an understanding of personal finance that sets you above the rest and, ultimately, change your life for the better. 

You can hear more personal thoughts on each book on our #AsktheMoneyGuy episode, What Books Does The Money Guy Show Recommend?

1. The Wealthy Barber by David Chilton

If you’re looking for a book covering the basics of personal finance – this one’s for you! 

It was published in 1995 with some old-school charm and was written in narrative form, like a storybook. (In other words, it does not read like a textbook!) Even if you don’t know anything about finance, you can enjoy The Wealthy Barber.

It’s educational fiction that (we think) should be required reading for every college graduate as they start their first job. It covers all the basics like, how money can work for you, buying your first house, investing, and saving.

2. The Millionaire Next Door by Thomas J. Staley, Ph.D and William D. Danko, Ph.D

When this book came out in 1996, we found out that millionaires were not hanging out with Robin Leach and driving rolls royces. They were driving F150 trucks! 

You’ll learn how actual wealthy people make decisions. If all you do is read it and behave the way they behave, you’ll be amazed how at how much it changes your circumstances.

This book is very emotional for me (Brian) because it made me realize that I could do this! I could actually build wealth myself. I come from a lower-middle class household, and I grew up with some false misconceptions that to be rich you had to inherit money. Well, I found out from The Millionaire Next Door that 80% of millionaires are first generation, meaning they did not inherit money from family members. That shook me! There’s a lot of madness and noise in your head that just doesn’t match up to what real millionaires are like. One of them probably lives next door to you!

3. How to Win Friends & Influence People by Dale Carnegie

If you want to be a better husband, wife, business partner, or friend, this one’s for you. I kid you not, this book will make you a better human! It goes through some basics of how we’re all wired. What makes us happy? What influences us? The majority of the self-help empire industry is built upon the basic tenets of How to Win Friends & Influence People. Cut out the middle-man go straight to this book.

Whether you’re far down the path of your financial journey or you’re just starting out, we hope these books inspire you! By keeping this knowledge at the forefront of your life will serve you well and set you up for success. Watch the full #AsktheMoneyGuy episode to hear more about how these books have changed our lives.

The New Year is right around the corner, and we want to help you make it as successful as possible. How? By getting started with these seven must-read book recommendations!

Whether you want to improve your financial health or focus on self-development, these books have you covered. If you’ve ever wondered what information helped shape us into the financial experts we are today, this show provides the answers.

Before we get into these fantastic reads, we’d be remiss if we didn’t tell you that one of the best ways to take your finances to the next level in 2016 is to get the your own Money Guy on your side.

If you want Brian and Bo’s expertise for your portfolio, email brian [at] money-guy.com or bo [at] money-guy.com. We’d love to help make 2016 a financially successful one for you.

In This Episode, the Money Guys Recommend:

• The Millionaire Next Door: The Surprising Secrets of America’s Wealthy by Thomas J. Stanley and William D. Danko. This is a great book for those needing extra motivation to get excited about saving. It paints a realistic view of millionaires that makes wealth seem attainable even for the average Joe.
• The Wealthy Barber: Everyone’s Commonsense Guide to Becoming Financially Independent by David Chilton (3rd Edition). This is the perfect book to give to a high school, college graduate, or finance novice as it’s in an entertaining storybook format.
• The Truth About Money by Ric Edelman (4th Edition). Brian calls this a reference book, and Bo calls it the personal finance encyclopedia. It’s a must-have for anyone serious about improving their financial situation.
• Any Berkshire Hathaway Annual Shareholder Letter by Warren Buffett. Brian and Bo both agree that there’s tons of timeless wisdom and investment tidbits in every letter, and this archive goes back to 1977. It’s also free!
• How to Win Friends & Influence People by Dale Carnegie. This book is enormously popular for a reason. It covers six essential concepts you need for success when dealing with people and winning them over.
• Outliers: The Story of Success by Malcolm Gladwell. The interesting case studies on highly successful people make this book an insightful read.
• David and Goliath: Underdogs, Misfits, and the Art of Battling Giants by Malcolm Gladwell. This is a recent publication and critics had mixed reviews, but Brian loved it. This book argues that what we perceive as weaknesses can actually be unique strengths.

Additional Resources

• Brian’s column in U.S. News & World Report
• Thomas J. Stanley’s Blog (continued by Sarah, his daughter)

Go Beyond Common Sense With the Money-Guys

As we close out the end of the year, we couldn’t be more thankful to our Money Guy family. Without you, this show wouldn’t be as successful as it is today.

We appreciate all the feedback we get, and we read every single email you send us. Let us know what you want to hear about in 2016 by emailing brian [at] money-guy.com or bo [at] money-guy.com.

And don’t forget to connect with us on Twitter @MoneyGuyPodcast, or check us out on Facebook. We’d love to have you share your book recommendations with us on social media, too! We’d love to hear what you think we missed.

Can’t wait to get reading and want more amazing financial content? Join our community! You’ll get access to 15 of our most recent shows, and as a bonus, our podcasts will be delivered straight to your inbox so you can be the first to listen to them.

This episode of The Money-Guy Show is a reflective one as Brian and Bo pay tribute to Thomas J. Stanley, co-author of the popular personal finance book, The Millionaire Next Door. They also discuss the importance of healthcare directives in light of Brian’s father-in-law passing away unexpectedly.

As loss is unfortunately inevitable in our lives, Brian is also offering his wisdom on how we can turn loss into motivational fuel.

The Timeless Advice of The Millionaire Next Door

Dr. Stanley passed away a few weeks ago in a tragic car accident and Bo and Brian pay tribute to him.

The Millionaire Next Door has influenced the lives and financial decisions of so many people. Brian recalls first reading the book back in college and having his financial DNA changed. He says it was amazing to read that 80% of millionaires were first-generation rich, dispelling the myth that the wealthy commonly inherit their money.

This means that anyone could become a millionaire, and the factors of the wealthy listed in the book are attainable by anyone as well.

The Money Guys also discuss Dr. Stanley’s other book, Stop Acting Rich: …And Start Living Like a Millionaire. It contains a great formula to figure out if you’re accumulating wealth fast enough:

Income * Age * 10% = ?

You can compare the number you get from this equation to your net worth to gauge your progress. (Brian notes that the formula works better for those over 35 years old.)

How to Deal With Loss in a Positive Way

Brian received a question earlier on how he turned a negative event into a positive: when his father passed away, he decided to start his own business.

He mentions that the darkness of the situation gave way to clarity as he reflected on what truly mattered in life, and gives 4 tips on how to turn loss into motivational fuel after gaining clarity:

• Visualize what you desire and dream
• Craft a big picture plan
• Take baby steps to implement the plan
• Don’t look down or back

The Importance of a Living Will

Brian highlights the importance of having a living will in place so your loved ones can have peace of mind in the event you become incapacitated.

Brian’s father-in-law recently went in for a routine outpatient elective surgery, and unfortunately experienced complications that led to his passing. However, because he had a living will, the family was able to honor his wishes and come to peace with the fact he had lived a long and fulfilling life at age 81.

Brian and Bo urge listeners to set up a living will for themselves, and to have an open discussion about it with their parents. If the conversation seems difficult to have, you can always use The Money-Guy Show as a catalyst to talk about it.

To help you think about what factors you need to consider, Brian recommends looking at the Mayo Clinic’s guide on the subject.

None of us like to think about death, but there are positives we can take away from these situations. Make sure you reflect on what matters most to you, and take the time to craft a living will so your loved ones don’t have to make critical decisions about your health without your input.

2008 is coming to a close and this is the time of the year where we start planning those Resolutions on how we are going to make 2009 better than 2008.  Below I have provided a few thoughts and links:

If you are Unhappy… Make a Change
If you are not happy with where you are financially right now I challenge you to make 2009 the year you make a change. Success is easier than you think… You just have to believe and figure out where your passion is.  Maybe 2009 is the year to start a business, or for you to go back to school. It is very fulfilling and can be financially rewarding to make a big change and have success that leads you to a better life.

If Debt is your Demon consider Checking out Dave Ramsey’s Total Money Makeover.

If you are new to Personal Finance consider reading David Chilton’s Wealthy Barber.
This book is a must read for anyone just beginning their journey into Financial Independence.  The book does not read like a text book.  It is very entertaining and highly motivating.

Curious to see how the wealthy think? Consider reading The Millionaire Next Door.

Wealth is a side effect of finding a career that works with your personal passion and what makes you happy.

Understanding the Limitations of Human Behavior:

Listen to the show today and I share how the desire to time the market can be a dangerous game.

I also need to let you know the facts behind human behavior and your investment returns. There is a great resource that provides an analytical way to review the way many of us act in good and bad times. That resource is DALBAR and their Quantitative Analysis of Investor Behavior (click to check out the site yourself)

Scary Stats and Figures:

Annual Return From 1987-2007 (20 Years):
Inflation = 3.04%
Bond Investor Return = 1.55%
Equity Investor Return = 4.48%
Long-Term Gov’t Bd Index = 7.56%
S&P 500 Return = 11.81%

Average Retention Over 20 Years:
Equity 3.1 Years
Fixed Income 3.2 Years
Asset Allocation Funds 4.2 years

One of the first things that I let people know about investing is that anyone can make money when the market is up. There have been enough studies that support this by using Darts and Monkeys, but your real test as an investor comes when the market is down. I know that most of my listeners are overachievers that own or run successful companies, but even smart individuals can make bad decisions when fear overcomes them. Use this data to keep your thoughts rational if the market continues to be choppy.

Thoughts on the Big 3 Auto Makers
I close out the show and the year with a few thoughts on the situation that the Big 3 Auto Makers are in.  I even have some information provided by a few of my listeners that live in Michigan.

Thank you for listening in 2008 and I look forward to a very productive 2009!