Sunday, January 28, 2007

What to do to survive the recession? Build wealth

I am going to loan my copy of The Millionaire Next Door to my kids and nieces as a guide for long term wealth building - this entertaining book is a road map for building wealth instead of living a consumption based life style.

Since many more economists are now warning about the serious structural problems in our economy (that the war in Iraq is keeping out of the public consciousness), it occurred to me that Stanley and Danko's advice on money management and life style also apply to protecting you and your family from economic downturns. I am old enough to have lived through several economic "boom and bust" cycles, and one thing that has always caught my attention is that during "boom" economic times, a lot of people seem to believe that the good times will never end. In fact cycles are natural, should not be feared, and should be planned for.

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