Average American household has less than $10,000 in net financial assets...

Recently I listened to the audio book, " The Millionaire Next Door." It made me think a lot about how American's spend money.

How can the average American have only $10,000 in assets, excluding home mortgage?

How can people to have incomes in the $100,000 or greater range have little to no assets?

How is it that people with incomes less than $100,000 a year millionaires?

Many Americans love status items, IE, new cars every few years. It is the perception given that if you drive a brand new BMW or Mercedes you are wealthy. However most millionaires never have spent more than $30,000 on a car, and RARELY by new vehicles.

The book describes two different types of people: UAW's ( Under accumulators of wealth) and PAW's (prodigious accumulators of wealth).

The book describes various lifestyles of people. I can already see people I know as UAW's. These UAW's get their spending habits from their parents. Did their parents get new cars every few years? Or did they drive their Toyota for 10 years, then buy another USED car and drive it for another 10 years.

This book is a must read for the avid investor.