I have added TWO books to my small library (i) The millionaire next door and (ii)The elements of Investing. I have started with the former and i've read one third of the pages.

To the accountants in here, What does this statement mean, because the author insists to move from a Under Accumulator of Wealth (UAW) to Prodigious Accumulator of Wealth (PAW) you need good financial advice........People accumulate significant wealth by minimizing their realized/taxable income and maximixing their unrealized/nontaxable income.

Secondly how true is this!!!!!
I quote the authors... on how to determine if you are wealthy.
Multiply your age times your realized pretax annual household income from all sources except inheritances. Divide by ten. This, less any inherited wealth, is what your net worth should be.
Given your age & income, how does your net worth match up? if you are twice above the calculated figure you are a PAW, if you are below half of that a UAW or if you match the calculated figure you are an Average accumulator of wealth (AAW).

So, are you a PAW,UAW or AAW?

@BGL,
Is this wealth calculation universal or American?
Reminds me of a Kenyan psyschologist who failed one Mbogua(a peasant's son) on an IQ test because he could not differentiate between Hamburg(German city)and hamburger...