The recommended daily allowance

The Millionaire Next Door (Thomas Stanley)

It is unfortunate that some people judge others by their choice in foods, beverages, suits, watches, motor vehicles, and such. To them, superior people have excellent taste in consumer goods. But it is easier to purchase products that denote superiority than to be actually superior in economic achievement. Allocating time and money in the pursuit of looking superior often has a predictable outcome: inferior economic achievement.

What are some of "the surprising secrets of America's wealthy"? Well, they don't spend much on suits, watches, or cars, to begin with. And perhaps taking their cues from billionaire Warren Buffett (and related link here), many live in modest homes in modest neighborhoods.

As it turns out, they adhere to fundamental tenets:

■ Spend less than your earn.

■ Steer clear of "status purchases" and a "status lifestyle."

■ Teach your kids these same behaviors (i.e., do not provide "economic outpatient care").

I first read in Millionaire in 1997, but I returned to it this month when tweaking my money management "curriculum." Despite its reliance on (somewhat irritating) repetition and thinly veiled reverse snobbery, Millionaire is a timely reminder that the truly (as opposed to apparently) wealthy often live frugally and that earning to spend is akin to financial slavery.

You'll find an excerpt of this personal finance classic here and the author's website here.