161-A Tribute to Tom Stanley: 10 Major Finance Lessons I Learned From The Author Of The Millionaire Next Door

I was very saddened to hear on Sunday night that Dr. Tom Stanley, author of the famous book "The Millionaire Next Door" and many others, died in a car accident near his home in Atlanta on Sunday afternoon.

As I reflected on the impact that he and his work had on my life, I came to realize that he probably had a greater impact on my way of thinking than any other personal finance author I can think of.

Not only did he impact my way of thinking, he impacted me personally.

I reached out to him in July of 2009 when I was trying to find resources for how to market my services as a financial advisor to the affluent.

His response was gracious and professional:

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07/19/09

Joshua,

Can't thank you enough for your kind comments on my blog. Words like yours sustain me. Two of the best rated speeches that I have ever given were to The Top of the Table and later at the Court of the Table (as you know part of the Million Dollar Roundtable Association). Both of those speeches were recorded (audio) and, as I understand it, were distributed by The Million Dollar Roundtable. I would also suggest that you read the chapter on Beverly Bishop in my book, Millionaire Women Next Door. And also Selling to the Affluent should be very valuable to you in your work. I'll know better about my speaking programs in September. Please continue to check my website for updates. Regards and much continued success.

Tom Stanley

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More importantly, he saved me from a very expensive mistake by suggesting a specific car for me to purchase. (Details are in the show.)

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08/19/10

Mr. Stanley,

One very brief question: What do you think would be the best kind of car for a financial advisor to drive?

I don't believe in "status" cars. But I live and work as a financial advisor in West Palm Beach/Palm Beach/surrounding area! And here, everyone--even/especially the broke people--have status cars.

What should I do? :)

Joshua

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08/26/10

Dear Mr. Sheats:

If I were in your position, I would buy a previously owned Chevrolet Tahoe or the GMC version in white, leather interior with tinted windows! These cars fit in each and every category of the wealthy. They are among the most popular cars within the "glittering" rich (very affluent) segments.

Regards,

Tom Stanley

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His communication was professional, courteous, and emminently helpful. Now that I find myself in the position of a somewhat public figure, I'm striving to emulate him.

I was disappointed not to be able to get him on the show. I had reached out to him for an interview but his schedule didn't allow it at the time. I had hoped to bring him on in the future but alas, 'tis not to be.

In my tribute to him, I have prepared this episode with ten important lessons I learned from him.

1. I learned who the actual millionaires are.
2. I learned the difference between wealth and income.
3. I learned that it's OK to simply be on the way to wealth and that age matters.
4. I learned to be proud of being frugal.
5. I learned to choose my spouse very carefully.
6. I learned not to go with the crowd.
7. I learned to choose my housing very carefully.
8. I learned that you aren't necessarily what you drive. Millionaires drive Fords.
9. I learned how to prepare my children to avoid Economic Outpatient Care.
10. I learned principles, not rules.

Enjoy!

Joshua