3 Kinds of Wealth Accumulator: Which one are you?


It doesn’t matter whether you have a million or not to determine whether you are wealthy.

You may be earning high but have a lower net worth than what is expected of you.

You may be earning minimum but have a higher net worth than what is expected of you.

Wealth does not equal to income or spending.

After listening to the audio book The Millionaire Next Door, I confirmed that what I said in my book How Savings Saved My Life holds true.

“It’s not how much money that you have that matters but it’s what you do with the money that you have”.

According to the authors Thomas J. Stanley and William D. Danko, there are three kinds of wealth accumulator.

To know which category you belong to, compute for your expected net worth using the formula below.


For example, a 50 year old man who had a total income last year of P120,000 has an expected net worth of P600,000 computed below:

wealth calculator

  1. The Under-Accumulator of Wealth – If your actual net worth is lower than your expected net worth, you are an under-accumulator of wealth.
  2. The Average Accumulator of Wealth – If your actual net worth is equal to your expected net worth, you are an average accumulator of wealth.
  3. The Prodigious Accumulator of Wealth – If your net worth is way above your expected net worth, say twice, you are a prodigious accumulator of wealth.

Are you a prodigious accumulator of wealth? I congratulate you.


Did you fall under the Under-accumulator of wealth? Fret not because the subjects of the research of The Millionaire Next Door are in their 50’s and up. If you are a young professional like me, you can still drive your way to becoming wealthy.


Do you want to be a prodigious accumulator?

Take a look at the Seven Characteristics of the Wealthy according to the book The Millionaire Next Door.

  1. They live well below their means
  2. They allocate their time, energy, and money efficiently in ways conducive to building wealth.
  3. They believe that financial independence is more important than displaying high social status.
  4. Their parents did not provide economic outpatient care.
  5. Their adult children are economically self sufficient.
  6. They are proficient in targeting market opportunities.
  7. They chose the right occupation

Photo source here

P.S. 1 The full version of my book How Savings Saved my Life is not yet out. I apologise if I have caused confusion. In the mean time, download the free version here. Those who got the free version until today (January 7) Extended until January 15 only will get the full version for free once it is out. Thank you for the downloaders. Feel free to share the link to your family and friends.

P.S. 2 Here’s what you can expect in the additional chapters in the full version

Why You should always have your savings first

How to choose your Vehicle: Which Investment Instrument is right for you?

How to Know your Deepest why: Three Reasons Why You Should Save and Invest in the right Financial Instrument

Why Some People Almost Always Earn in the Stock Market: The Cost Averaging Method

How to have the right Mindset to succeed in investing and other areas of your life

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