This book was a real wake-up call! This is how our parents lived and how my generation lived when we were younger. It also reminds us that "you can't always tell who has money and who doesn't". Lots of research to back up conclusions - tedious in parts but very valuable for anyone struggling to manage their finances in modern society.
Millionaires are everywhere...most don't show or act like it though. This is the focus of the book- how affluent people live, spend and earn their money. It is a pretty eye opening experience to find out what these researchers discovered.
I thought this book was great. Lots of ideas such as *cut your expenses*, *buy value*, *work at what you love*, *don't, literally, spoil your kids*, *the jones are probably somebody's spoiled kid*, etc. awesome read.
This book was written by and for people that enjoy referencing statistics, tables, and case scenarios. I am not one of those people. This book was terribly boring and a pain to read. However, once you wade through the tediousness, the book contains useful information on obtaining wealth.
The Millionaire Next Door:
1. They live well below their means.
They are extremely frugal- from their house to their cars to their clothes.
2. They allocate their time, energy and money efficiently, in ways conducive to building wealth.
They take the time to plan and control their yearly financial expenditures as well as their investments.
3. They believe that financial independence is more important than displaying high social status.
They believe if they purchase the multi- million dollar mansion in an affluent neighborhood that they have to buy the luxury foreign cars for the garage, the dues for the country club, the private school tuition, the designer suit and watch- essentially an unnecessary and extravagant lifestyle.
4. Their parents did not provide economic outpatient care.
Adult children of affluent parents that receive substantial EOC are less successful, ambitious, and responsible than those adult children who do not.
5. Their adult children are economically self- sufficient.
They lead by example and demonstrate the practice and importance of financial responsibility and independence for their children. The more financially independent the adult children are, the less of a financial burden they are to their parents.
6. They are proficient in targeting market opportunities.
They are not nearly as price- sensitive when it comes to purchasing investment advice and services, accounting services, tax advice, legal services, medical and dental care for themselves and family members, educational products, and homes. Businesses and professions likely to benefit from the affluent: attorneys who specialize; medical and dental care specialists; asset liquidators, facilitators, and appraisers; educational institutions and professionals; professional services specialists; housing specialist/dwelling products/services; fund- raising counselors; travel agents and bureaus and travel consultants.
7. They choose the right occupation.
Carl Johnson, sole proprietor of Johnson Coal:
'... the successful man is a guy who works at a job, who likes his work, who can't wait to get up in the morning to get down to the office, and that's my criteria.'
The moral of this story: Be frugal. Save. Invest. Teach your children to do the same.
There. I just saved you 250+ pages of mind- numbing statistics, redundant tables, and wearisome stories that illustrate this information.
Book that was absolutely eye opening to me and my finances. Realized the only, and I will say again, the only way to get ahead in the financial world is to budget and invest. Great book, I have been recommending to my family and friends.
Ehhh.overrated book. I kept hearing folks rave about this book and i was let down. If you watch your earnings, you can get by just as well as the folks mentioned, but who doesn't already know that. This book really bashes charaties, which turned me off. I do quite well, and as a result, try to give back. If that doesn't make me as much of a success a millionaire, well, they can have it.
The Millionaire Next Door, is surprisingly inspiring. It is a great read for a 20 something who wants to get ahead of the curve in quest to become a millionaire. The research that Stanley and Danko conducted and explained is easy to understand and relatable to real life. The book makes it seem possible to live a financially secure life. One last thing to point out is that it is an easy read and profiles what real millionaires act like...and they don't usually have expensive clothes and exclusive cars.
When you search out books containing financial advice, you'll almost always sort them by publication date, because timeliness is important. This book was written in the mid-90's, which was a vastly different financial landscape than now. However, about 70% of the book discusses long-term themes and results of interviews and studies that is not affected by the ups and downs of any particular monetary climate. The other 30% of the advice given you will probably glance over and discard (heavy emphasis on the stock market and other types of investments, and we all know what happened in the late 90's / early 2000's in that world). I can't believe I never read this book before, as many times in the past 10 years or so I've heard it quoted and heard people mention things that were in it. I finally got around to reading it, and I'm glad I did. Even disregarding the out-of-date part, which really does not affect the main themes of the book, it was an interesting read. I have also noticed that financial books mostly center around a particular person or group's "plan", and this one was different, as it was an assemblage of plans by people who had already reached their financial goals, not a road map to how "you can be rich too!" like a lot of the others. It's more of a study and conclusion style book than most other financial advice books. With that in mind, I almost don't classify it as financial advice (although 70% of the book is worth taking to heart!), more of an academic case study using a hundred or so cases to make their point. Parts of it are so academic and dry you won't know what to do with the information - such as the involved charts explaining the ethnic background of millionaires they interviewed, how many millionaires per thousand their country has, home values by state, and some other charts that didn't seem to really help me any (I'm Irish and in South Carolina, and I found out that anecdotally anyway, there's not much hope for me ... but really, does that matter?) but again, that's more of a study than a guide. I do recommend it. By far the most interesting was the parts about family relationships and the success of your children, the things millionaires do that consistently bring about success for their children, and also the many ways children of wealthy people fail. Uncomfortably, I could put names of people I know in many of those spots (failure mostly). You will recognize patterns and learn how to avoid the pitfalls. Even though the book is 15 years old, I recommend it.
An excellent read for anyone who is serious about handling their finances better. An eye opening look at how most "rich" neighborhoods are full of "posers", and the true wealth is often hiding in middle income neighborhoods. It's those who live simply, who often become wealthy.
The authors take a scientific approach to analyzing millionaires in this country: who they are, their lifestyles, their values, what they spend their money on, and the types of occupations, work they do. The main difference between this book and many others on the topic is that the authors look at net worth as total cash assets available and do not include non-liquid assets such as homes and personal property. Another important distinction between this book and others is that the authors attempt to really analyze why people in the same income groups have substantially different net worth. I think this is a great addition to books on finance because the authors' conclusions about who is a millionaire and why can be replicated by almost anyone, even those with modest incomes.
This book doesn't work so well for single-income households, but most of the principles still apply.
What a great and insightful way to look into how others gain weath in their lives. So many easy ways to gain personal net worth, which is something many of us never even think about as we continue to live pay check to pay check. Definately a great read!
Want to be rich? Work hard and invest it wisely. Do Not spend it. Spend when need be, which is seldom. Pinch those pennies and buy items that will last a looong time, instead of shiny new junk. If you don't believe me, read the book! Examples of both sides are given: Those who spend and don't save and those who save and don't spend. Guess which ones are the millionaires!
Really opened my eyes to how true millionaires, not heiresses that the media portrays, live. Changed many preconceived notions I had. Lots of statistics but if you can get past the numbers you'll find great info. Loved it.
An older book but with basic advice. Much of what they say can be distilled into...save as much as you can, live frugally and well below your means, have your own business if you can, don't live a high consumption lifestyle. I found the emphasis on being self-employed a bit off-putting. The data is a bit outdated frankly as far as ethnic groups go. I wonder how first generation immigrant Chinese or Korean or immigrant Indians do these days compared to other ethnic groups. I bet they save very well. They aren't really mentioned in this book.
From back cover: The incredible national bestseller that is changing people's lives and increasing their net worth. Can you spot the millionaire next door? Who are the rich in this country? what do they do? Where do they shop? What do they drive? Where did their ancestors come from? How did they get rich? and can I ever become one of them? Get the answers in the Millionaire Next Door, the never before told story about wealth in America. You'll be surprised at what you find out.......