1. PAW (prodigious accumulator of wealth) is someone who has achieved high net worth. UAW (under accumulator of wealth) is someone with low or negative net worth. PAWs may have normal or even below average income. UAW may have high income. It’s not how much you make: it’s how much you keep.

2. PAWs live below their means.

3. PAWs have budgets and stick to them.

4. The majority of PAWs own their own businesses. Businesses are not fancy but provide solutions to basic necessities.

5. PAWs believe being financially free is more important than displaying status. PAWs focus on net worth. UAWs focus on status symbols.

6. Most PAWs are self-made. They didn’t receive money from their parents.

7. Most PAWs are big investors, putting 20% or more of their income into savings, stocks, mutual funds or real estate.

8. PAWs keep their taxes low because they’re not selling investments all the time. They buy and hold.

9. Most PAWs dedicate time to financial planning and regularly consult with expert professionals.

10. Most PAWs buy used cars and keep them for a long time.

11. Most PAWs don’t give cash gifts to their kids, but many pay for their education.

Book link: The Millionaire Next Door