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The Millionaire Next Door: The Surprising Secrets of America's Wealthy

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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? How do they invest? Where did their ancestors come from? How did they get rich? Can I ever become one of them? Get the answers in The Milli 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? How do they invest? Where did their ancestors come from? How did they get rich? 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....


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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? How do they invest? Where did their ancestors come from? How did they get rich? Can I ever become one of them? Get the answers in The Milli 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? How do they invest? Where did their ancestors come from? How did they get rich? 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....

30 review for The Millionaire Next Door: The Surprising Secrets of America's Wealthy

  1. 5 out of 5

    Jay

    I learned that there are seven characteristics or common denominators among millionaires in America. They are: 1.They live well below their means - They are frugal,frugal, frugal. They make more than they can spend. Pretty cool. 2.They allocate their time, energy, and money efficiently, in ways conducive to building wealth - How else did they get there right? Well this goes for those millionaires who didn't inherit their wealth. 3.They believe that financial independence is more important than d I learned that there are seven characteristics or common denominators among millionaires in America. They are: 1.They live well below their means - They are frugal,frugal, frugal. They make more than they can spend. Pretty cool. 2.They allocate their time, energy, and money efficiently, in ways conducive to building wealth - How else did they get there right? Well this goes for those millionaires who didn't inherit their wealth. 3.They believe that financial independence is more important than displaying high social status - Practical. You can display high social status all you want, but if you're still dependent on active income then you're one very vulnerable fella. 4.Their parents did not provide economic outpatient care - Pretty good training ground, don't you think? They train their kids to be survivors and in the end, to be winners. This is the best legacy they can leave to their children. 5.Their adult children are economically self-sufficient -Pass on the buck right? That's why the rich get richer and the poor get poorer. 6.They are proficient in targeting market opportunities - Now this is one handy skill I want to get my hands on. 7.They chose the right occupation - Right! To wake up everyday itching so badly to get yourself to do the things you love. Ain't that a ball! Learn from this. The lessons and ideas may seem repetitive, but the author is really trying so hard to drive home a point. We need to learn the lessons. He want us to. Well, we ought to. =)

  2. 4 out of 5

    David

    This was a great audio and text book (yes, I got both versions) - I especially enjoyed the chapter that had "Working for the Tax Man" and "The Martin Method." 95% of the millionaires own stocks - most have 20% or more of their wealth in publicly traded stocks. Build a good money team: accountant, attorney, financial advisor, and you (and spouse). Looking to build your money team? Ask your CPA. If you do not have CPA... get one. Be frugal, know your financial picture, and have goals with your money. This was a great audio and text book (yes, I got both versions) - I especially enjoyed the chapter that had "Working for the Tax Man" and "The Martin Method." 95% of the millionaires own stocks - most have 20% or more of their wealth in publicly traded stocks. Build a good money team: accountant, attorney, financial advisor, and you (and spouse). Looking to build your money team? Ask your CPA. If you do not have CPA... get one. Be frugal, know your financial picture, and have goals with your money. The good millionaires know how much their costs are in life - how much they spend shopping, traveling, etc. You heard of emergency fund, car fund, retirement fund, etc. well I am adding the "Go to Hell Fund." The typical millionaire has a "Go to Hell Fund" which allows them to quit their job and not work for like 10 years or more. So when you quit your job or get fired, you can say to your employer "go to hell" and walk out the door and not worry about working. I like this part in the book about UAWs and PAWs. You got three categories to millionaires. UAW = Under Accumulator of Wealth (1/2 of AAW) AAW = Average Accumulator of Wealth PAW = Prodigious Accumulator of Wealth (2 * AAW) To figure out what category you are in - do the following formula: Age/10 x Income Example: Age 30, Income $45,000 30/10*45000 = $135,000 This person should have net worth of $135K. UAW = $67,500 AAW = $135,000 PAW = $270,000 To figure out your actual net worth - do the following formula: Assets - Liabilities Example: Age 30, Income $45,000, Credit Card Debt $12,0000, Car Loan $20,000 45000-(12000+20000) = $13,000 This person has Net Worth of $13K.

  3. 5 out of 5

    Renee

    The point of this book comes through loud and clear, the people that we think are millionaires are more than likely swimming in debt. Just because you live in a fancy neighborhood and drive an expensive car does not make you rich. In fact it goes as far as to say that most millionaires live in less costly areas because it costs alot of money to keep up with the JONES! In fact their study showed 37 percent of their millionaires bought used cars opposed to new and paid cash of course. Now their us The point of this book comes through loud and clear, the people that we think are millionaires are more than likely swimming in debt. Just because you live in a fancy neighborhood and drive an expensive car does not make you rich. In fact it goes as far as to say that most millionaires live in less costly areas because it costs alot of money to keep up with the JONES! In fact their study showed 37 percent of their millionaires bought used cars opposed to new and paid cash of course. Now their used cars may be Mercedes but they save on the depreciation of the person that bought it new. They reference one guy nameed W. W. Allen who is a self made MUTImillionaire. "He and his wife have lived in the same three-bedroom house in the same middle class neighborhood for nearly forty years" "Living in less costly areas can enable you to spend less and to invest more of your income. You will pay less for your home and correspondingly less for your property taxes. Your neighbors will be less likely to drive expensive motor vehicles. You will find it easier to keep up, even ahed of the Joneses and still accumulate wealth" Ok, makes total sense but not something that is usually pointed out by the financial world. People tend to spend more than they make making it nearly impossible to accumulate wealth. I love the message of this book and their is extensive research used to back it up.

  4. 5 out of 5

    Pat

    It's rare that you can find a book that is as boring as it is sanctimonious. But they pulled it off! In a nutshell, millionaires aren't made by extraordinarily high incomes (those people's spending tends to increase as well), in fact they're typically people with merely very good incomes who are zealous about frugality and long term investments. Not a huge surprise actually, but its nice to have numbers to back up the story and they do. Many are small business owners, many don't spend much on car It's rare that you can find a book that is as boring as it is sanctimonious. But they pulled it off! In a nutshell, millionaires aren't made by extraordinarily high incomes (those people's spending tends to increase as well), in fact they're typically people with merely very good incomes who are zealous about frugality and long term investments. Not a huge surprise actually, but its nice to have numbers to back up the story and they do. Many are small business owners, many don't spend much on cars or suits and 80% are first-generation millionaires (not those who happened into big inheritances). And that's it. The rest of the book is filled with awkward, pedantic number-twisting to prove that people who spend less on houses and cars will have more left for retirement. What's maddening is the constant tone that people who choose to spend now instead of when they're 65 are "hyperconsumers". Can you believe this doctor, he makes $700,000 per year and spent a whopping $7000 of it on a vacation! What a dope! Wouldn't the $65,000 he spent on a Porsche have felt just as good in an IRA account? They constantly fawn over blue-collar superstars who drive around in F-150s while their wives clip coupons. They start with the assumption from the very beginning that money is pre-ordained to end up in a retirement account and anything you do to interfere with that is stupid and indicative of poor discipline. I can't wait for the next book about how Rock and Roll is too loud and women's skirts are too short.

  5. 5 out of 5

    Chad Warner

    Most Americans believe "wealthy" and "high-income" are synonymous. Surprisingly, most high-income earners are not wealthy; although they earn a lot of money, they don't keep much of it. To be wealthy is not to amass material possessions, but to increase net worth by collecting appreciating assets. The book categorizes people as PAWs or UAWs; Prodigious Accumulators of Wealth (PAWs) achieve, create wealth, become financially independent, and build from scratch. Under Accumulators of Wealth (UAWs) Most Americans believe "wealthy" and "high-income" are synonymous. Surprisingly, most high-income earners are not wealthy; although they earn a lot of money, they don't keep much of it. To be wealthy is not to amass material possessions, but to increase net worth by collecting appreciating assets. The book categorizes people as PAWs or UAWs; Prodigious Accumulators of Wealth (PAWs) achieve, create wealth, become financially independent, and build from scratch. Under Accumulators of Wealth (UAWs) simply display a high-status lifestyle. Most wealthy people (PAWs) don't drive new cars, buy expensive clothes, or live in upscale neighborhoods. I read this book because it was recommended by one of my favorite financial authors, Robert Kiyosaki, author of the Rich Dad Poor Dad series. This book explains 7 factors that contribute to wealth-building. These factors aren't set forth in a step-by-step "how to become wealthy" checklist, but are more indirectly investigated through statistics and interviews explaining the behavior of the wealthy. The briefest formula for wealth given: be frugal, invest, and own a profitable business. I found it interesting that (as of 1996) self-employed people (entrepreneurs and self-employed professionals) are less than 20% of the American workforce, but 33% of millionaires. Also, 80% of American millionaires are 1st-generation rich, people who earned their wealth rather than inheriting it. I liked the comparison between budgeting and dieting or exercising. When you see a fit person eating healthy or working out, you're tempted to think "Why do they need to diet and exercise? They're in great shape!" Of course, the reason they're in shape is because of their diet and exercise regimen. The same goes for the wealthy. You might think that they don't need to budget because they're wealthy, but it's often due to their budgeting that they became wealthy. To determine your expected net worth, multiply your age by your gross (pretax) annual income, then divide by 10. The 7 factors of wealth They live well below their means. Control spending by creating an artificial economic environment of scarcity. Pay yourself first by investing at least 15% of income before spending on anything else. Minimize realized (taxable) income, maximize unrealized (non-taxable) income. Sacrifice high consumption today for financial independence tomorrow. Get a mortgage less than twice your annual income. They allocate their time, energy, and money efficiently, in ways conducive to building wealth. Save and invest early. An early start with low income can outweigh a late start with high income. Invest at least 15% of gross/pretax income. Follow a budgeting and plan your finances. Invest passively with a buy-and-hold method to reduce capital gains and turnover. They believe that financial independence is more important than displaying high social status. Dollars are like seeds; you can consume them or plant them to grow. Their parents did not provide economic outpatient care. The more dollars adult children receive, the fewer dollars they accumulate. Those forced to provide for themselves tend to be wealthier than those who are given financial aid. Their adult children are economically self-sufficient. Helping the financially weak generally makes them weaker. They are proficient in targeting market opportunities. Offer goods and services to the affluent. Although they're often frugal concerning consumer goods and services, they're not as price-sensitive about investment services, accounting services, tax advice, legal services, medical care, educational products, homes, and products and services for their businesses. They chose the right occupation. Sell your intellect; it's portable across industries and geographic locations.

  6. 5 out of 5

    Susan

    This book was so difficult to get through. I have been trying to read one financial book a week. I love Suze Orman, Dave Ramsey. I enjoyed the Millionaire Mind; I found it inspiring. I did not enjoy the Millionaire Next Door. This book is heavily recommended on so many of the financial online forums and blogs I read, so I borrowed it from my library this week. I found the first chapter very interesting, and then they lost me. I think the premise of this book could be summarized into one chapter. Bu This book was so difficult to get through. I have been trying to read one financial book a week. I love Suze Orman, Dave Ramsey. I enjoyed the Millionaire Mind; I found it inspiring. I did not enjoy the Millionaire Next Door. This book is heavily recommended on so many of the financial online forums and blogs I read, so I borrowed it from my library this week. I found the first chapter very interesting, and then they lost me. I think the premise of this book could be summarized into one chapter. But then, you can't sell a book on one chapter! I do not think the writing is good. The authors are annoyingly repetitive. I think they bored their editor so much that the editor didn't catch that they repeat sentences over, and over, and over. The book is fluffed out with tons of boring, didactic charts. The writing is not organized - at times, it seems like streams of conscientiousness writing- jumping around too much. I think they completely lost my interest on page 75 when they write: "How else does one explain why two experts on wealth are not wealthy? in part, because they spent a combined total of nearly 20 years pursuing higher education." So on page 106 they tell a great story of Mr. Martin who won't hire advisers who don't have personal accounts of at least $200,000, because otherwise they are "full of baloney." But back on page 75, they admit they are poor themselves! So why should I listen to their advice?? They spend a lot of time on topics that completely lose my interest. To spend pages showing how rich guys typically buy cars by the pound, and then to review how many pounds each car weighs ...this really put me to sleep. They list the cars millionaires typically buy, and then to go on to list pretty much every car in existence. Or to review for pages and pages the ancestral backgrounds of the 3,000 millionaires they happened to pick from geocoded neighborhoods proves nothing to me. But then the authors lose confidence, and slap a disclaimer- quietly- on page 228. "we have gone out of our way to emphasize that there are no sure steps one can take to become wealthy." . But wait. Then what are the other 254 pages about? I am lost again. Because they spend a whole lot of time enumerating some pretty sound steps that millionaires take to get wealthy (1. they live well below their means. 2. they allocate...) Most importantly, there were 5.3 million households in America in 1997 (when the book was written) that were millionaires. Yet they only interviewed 3,000 households. To put forth statistics as "typical" based on the low percentage they interviewed can't possibly be accepted as statistical or fact. On page 249, they review that they chose the millionaires they surveyed based on geocoded neighborhoods- but this goes against what they spent 248 pages proclaiming! They spend the entire book professing that millionaires don't live in certain neighborhoods, then go on to say they only know this because they surveyed certain probable high-net-worth neighborhoods. With all this said, I am not disagreeing with any of the tenants of wealth accumulation they advocate- I follow them myself, and highly, highly recommend them! So I reluctantly recommend people read the book just to glean that bit, but with hesitance because I understand they will have to sort through boring charts, stereotyping, and bad writing to get advice. Readers would be better off reading a Ramsey book, which is captivating and not doesn't drown out the message with boring stats. There is some good insight in here - live below your means, don't spend 10 years in advanced education with hundreds of thousands of dollars in student loans to hold you back, invest your money at an early age, don't cripple your children by making them economically dependent, teach your children to fish, don't get caught up with keeping up with Joneses, work hard, plan, pick a compatible spouse, use a budget, track your spending, etc. All of this is great advice. According to .05% of the millionaires in America.

  7. 4 out of 5

    Kressel Housman

    According to this book, there are two kinds of people: under-accumulators of wealth (UAWs), who spend everything they earn as soon as they get it (to say nothing of credit cards); and prodigious accumulators of wealth (PAWs), people who live frugally, save, invest, and end up becoming millionaires. So when you see someone who lives in a fancy house and drives a fancy car, chances are, he’s not a millionaire. He may be a high earner, but he’s also a big spender, so he’s a UAW. A real millionaire According to this book, there are two kinds of people: under-accumulators of wealth (UAWs), who spend everything they earn as soon as they get it (to say nothing of credit cards); and prodigious accumulators of wealth (PAWs), people who live frugally, save, invest, and end up becoming millionaires. So when you see someone who lives in a fancy house and drives a fancy car, chances are, he’s not a millionaire. He may be a high earner, but he’s also a big spender, so he’s a UAW. A real millionaire lives humbly and isn’t into consumption. He might even live right next door. Now that’s an inspiring idea, one that made me go into this book with some hope of getting rich someday, but I didn’t have to read very far to realize that I’m in a hopeless UAW rut. That made reading it a pretty unpleasant look in the mirror, especially since I believe that what the authors are saying is completely true. I’ve seen it first-hand. I’ve worked for two estate planning attorneys and a bankruptcy attorney. I’ve seen both sides. For me, the most painful, shame-inducing part of the book was the analysis of parental “outpatient economic care.” I guess it’s not really news, but parents who bestow too much of their wealth too easily on their children end up providing for them even in their forties and fifties. This was the longest section of the book, and I found it a bit repetitive, but then again, perhaps that’s part of my shame reaction. Aside from this emotional reaction, I have a few technical criticisms. I didn’t finish the chapter called “You Are Not What You Drive,” since cars just don’t interest me that much. And though the book was full of charts with stats showing the authors’ research, I stopped looking at these about halfway through the book. On the flip side, I would have liked to read more about why the millionaires chose the businesses they did. The authors did give some advice on lucrative careers (estate planner was number one), but I would have liked more. All of that might have induced me to give the book a rating of 2, but I don’t think that’s fair. Just because the book was mostly a downer for me doesn’t mean it isn’t worth reading. It really has gotten me to look more closely at my spending. I just fear that as the book itself warns, crash budgeting can be like crash dieting. Will the effect really last?

  8. 5 out of 5

    ScienceOfSuccess

    There are no secrets. Also, the millionaires are not the kind you'd like to read about. Just bunch of people who saved for 30years and they have 1'000'000$ in the bank, living almost poor, and praising education. There are no secrets. Also, the millionaires are not the kind you'd like to read about. Just bunch of people who saved for 30years and they have 1'000'000$ in the bank, living almost poor, and praising education.

  9. 4 out of 5

    Angela Randall

    There's a lot to say about this book, both positive and negative. It had some great ideas in it, some which are possibly quite revelatory for some people, and some really useful information which I would love to ensure certain people I know read. However, it was also a very dry read, somewhat repetitive and dwelled on some things I didn't think were all that fascinating (like what sorts of cars millionaires drive). It also had a lot of charts, which is fun from a stats perspective and lends cred There's a lot to say about this book, both positive and negative. It had some great ideas in it, some which are possibly quite revelatory for some people, and some really useful information which I would love to ensure certain people I know read. However, it was also a very dry read, somewhat repetitive and dwelled on some things I didn't think were all that fascinating (like what sorts of cars millionaires drive). It also had a lot of charts, which is fun from a stats perspective and lends credibility, but it's a bit too much irrelevant info to take in. I honestly didn't care what sort of ancestry millionaires had or what cars they drove, but I saw that the authors were doing the Mythbusters thing and making sure people didn't believe in completely false things. I felt they spent an incredible amount of this book talking about what happens to the kids of the rich. However, this can be used as a great parental tool to ensure parents teach their kids the right money tactics, whether starting rich or not. It also ends with sensible career ideas to suggest to kids (which make a lot of sense with the reasoning). In essence, the lessons from the book are to remain frugal, save money and to ensure you keep your money wherever possible. Employ good financial and legal help to ensure you save on taxes, invest wisely and whatnot. Anyway, if you're frugal and live below your means you're on the right path. Then increase your income without changing your habits and be sure to invest the rest well and you'll be fine.

  10. 5 out of 5

    Viraj

    Main message is: Be Frugal, invest. One driving a Benz is quite likely less worth than one driving a Ford F150 (since the Benz owner has already spent money). Max price paid by 75% millionaires for: Suit $600, Shoes: $200, watch $235 (50%)! JCPenney has toughest quality control amongst all stores. Millionaires' wives are all frugal too. They save coupons etc... 1. All have annual household budget 2. All have accountant 3. All have investments in stocks, real estate, business etc 4. Shopping method Main message is: Be Frugal, invest. One driving a Benz is quite likely less worth than one driving a Ford F150 (since the Benz owner has already spent money). Max price paid by 75% millionaires for: Suit $600, Shoes: $200, watch $235 (50%)! JCPenney has toughest quality control amongst all stores. Millionaires' wives are all frugal too. They save coupons etc... 1. All have annual household budget 2. All have accountant 3. All have investments in stocks, real estate, business etc 4. Shopping method and principles (i.e. car purchase) VIMP: It takes only one fancy item to start the snowball effect. i.e. Rolls Royce as a gift was denied by a millionaire because all his accessories, clothes etc things would needed an upgrade to match that status symbol. Millionaires don't care about status symbols. The author calls them artifacts. They own, Ford (F150), Cadillac, Lincoln Town cars, Jeep, Lexus, Mercedes,, Oldsmobile, Chevy, Toyota, Buick, Nissan, Volvo, Chrysler, Jaguar. They tend to go for more weight per dollar criteria subconciously (comforts, reliability, safety). The book gives distribution of folks per their ancesterial origin, job function, inheritance. Frugal millionaires have less worries in general. Doctors & Lawyers typically earn a lot and spend a lot. The book could have been a little less lengthy; however, good thing is that it has come out of a thorough statistics from numerous interviews of millionaires. Household net worth = Household Income + Investments - expenses. Typically, one tries to maximize income but also increases expenses to either show off or to be at par with the society or because one thinks that spending = enjoying. It takes only one high-class item to start the snow-ball effect. Worth of a person should be >= Age / 10 * Annual earnings before taxes (no investment). i.e. for a 30 year old making $100k/year, his worth should be: $300k or more. If you are rich, your kids could have less net worth if you get into a teaching of spending or supporting them financially. The question that remains unanswered for me is: What to do with all the money when I save say a few millions? - I don't end up spending it due to my habit, - If I start spending, I am doing so when I am old and can supposedly enjoy less - If there is a recession or major financial problem (heart transplant), then I have more chances of survival (assuming US doesn't adapt good strategies of Europe and Canada about healthcare). - Once I die, Govt takes most for doing nothing. It talks about what one should do with all the money (main part is to donate and distribute and how). I shall read it when I am older or a millionaire, whichever happens first. :) The issues with financially helping out kids and continuing the help when they are adults is well listed. (Economic Outpatient Care). We weaken the weak by helping him financially. 1. Never tell children that their parents are wealthy. 2. Teach discipline and frugality 3. Don't let them realize that you are affluent until after they have established a mature, disciplined, and adult life-style and profession. 4. Minimize discussions of the items that each child and grandchild will inherit or receive as gifts 5. Never give cash or other significant gifts to your adult children as part of a negotiation strategy. 6. Stay out of your adult children's family matters 7. Don't try to compete with your children 8. Always remember that you children are individuals 9. Emphasize your children's achievements, no matter how small, not their or your symbols of success. 10. Tell your children that there are a lot of things more valuable than money I, however, would rather have that questions hanging over me than having worries of how to sponsor my brother's / kids' education while carrying a $500 Nokia phone and driving a 8 cylinder fancy sports car...

  11. 5 out of 5

    Craig

    Getting rich is most often done by being frugal, not by making outrageous, Trump-like gambits. The last 10 years or so have been marked by periods of investment euphoria (tech & housing), followed by terrible hangovers that have destroyed the wealth of millions within a few years or even months. The latest bubble (George Soros actually thinks 2 bubbles popped simultaneously last year -- the housing bubble and the 20 year credit bubble) could potentially be much more devastating than the tech bub Getting rich is most often done by being frugal, not by making outrageous, Trump-like gambits. The last 10 years or so have been marked by periods of investment euphoria (tech & housing), followed by terrible hangovers that have destroyed the wealth of millions within a few years or even months. The latest bubble (George Soros actually thinks 2 bubbles popped simultaneously last year -- the housing bubble and the 20 year credit bubble) could potentially be much more devastating than the tech bubble, because the bubble was based on leverage and credit, and so participants often risked everything they owned (and more), and a mere 20% decline in home prices wiped away their entire wealth, and left them without the means to even pay the mortgage once it reset. There have been many foreclosures in the past year. Look for more, and soon a flood of bankruptcies. Bankruptcies will be especially devastating because of recent legislation modifying bankruptcy laws. It should be noted that there are many so-called self-help finance books out there that are very dangerous for the common man, among them the "Rich Dad" series. They encourage normal people, uneducated in finance, to make such risky leveraged investments like buying second homes with no money down. Such books and advice should be avoided like the plague. Robert Kiyosaki (Rich Dad author) has absolutely no shame in not only misrepresenting himself and his so called Rich Dad (a figment of his imagination), but tickling man's inclination to gamble. Except that when people lose playing his game, they can lose literally everything. Turning attention to the actual book being reviewed, a large part of the book is devoted to profiling the "typical" millionaire. Some common qualities are: a) Most millionaires are married couples, never divorced. This should make sense for several reasons. First, there are no alimony/child support bills to weigh down expenses. Second, married people tend to be more emotionally stable, and thus are less prone to spending sprees or other extravagance. Third, married people don't feel they need fancy things to impress others. Although children do indeed cost a lot of money, the reality of parenthood encourages people to change their goals to be more far-sighted, which usually encourages saving. b) Most millionaires aren't extravagant, nor do they have a desire to live like rock stars. Money provides security to them and their family, and often their tastes and needs are as simple as the rest of ours. I remember the story of the husband in the book who, after selling his business for millions of dollars, gave his wife a check for a large chunk of that money while she was clipping coupons at the kitchen table. She said "Oh thanks honey, that's very nice of you," and went right on clipping coupons. c) It is true that a disproportionate number of millionaires are business owners. This makes sense though -- although most businesses fail, the ones that succeed are bound to rise in value (it costs much more to buy a successful business than to start a new one). So the sale of a successful business is often likely to generate a one-time windfall that blue/white collars are unlikely to experience. The main point of this section was to point out that certain cultures -- I think Irish and certain sections of Eastern Europe -- encourage members to open businesses and "make their own way". That is reflected in the statistics. I like this book because it brings together common sense with hard data to present a convincing argument that the best way to attain wealth is to a) save, b) be frugal/tame your desires, c) work hard, d) become a self starter, and e) get married and don't divorce. Common sense all of them, and all of which have happy side effects beyond the monetary ones.

  12. 5 out of 5

    Ken

    Rubbish. It is not written about the majority of us. It is written FOR the majority of us to make us believe that wealth is everpresent and easily accessible in our society. The numbers are often listed in a manner that does not acknowledge any actual analysis. Nor is inflation considered with any degree of seriousness. As most cheerleading books for market boosterism it gives its sideways genuflection to supply siders by completely ignoring the operating differences between income and wealth.

  13. 5 out of 5

    Eat.Sleep.Lift.Read.

    I really don't think the 'secrets' are that surprising. This book in a nutshell - be frugal. I really don't think the 'secrets' are that surprising. This book in a nutshell - be frugal.

  14. 5 out of 5

    Nikolay

    Some people live as they will never die, and die as they had never lived. It looks much more absurdly when you read about all those "millionairs" who are spending all of their lifetime for meticulous accumulation of wealth accompanied by greed and avarice. I don't know if there were "researches" conducted by authors indeed, and if all the written is truth. If so, I feel sorry for these poor guys, "millionaires". Having an opportunity to do what they want at least sometimes, they heroically sweep Some people live as they will never die, and die as they had never lived. It looks much more absurdly when you read about all those "millionairs" who are spending all of their lifetime for meticulous accumulation of wealth accompanied by greed and avarice. I don't know if there were "researches" conducted by authors indeed, and if all the written is truth. If so, I feel sorry for these poor guys, "millionaires". Having an opportunity to do what they want at least sometimes, they heroically sweep it aside for sake of pure wealth accumulation. Ok, they've decided to get away from the affairs at the age of 60. I can imagine how it's funny for them, old wrecks, to travel, enjoy summer nights, stare at the ocean, dance in bars, love, enjoy speed of bike/car/surf. At last they can spend their hard-gained money after lifetime spent for calculation of profit and saving...saving...saving! The book itself generally teaches you only one major thing: Be greedy. Don't buy nothing you like. Why to buy watches for 500 dollars if there is much cheaper one for 20. Don't travel, it's too expensive. Don't have too much friends, they eat and drink too much. Don't have hobby (except of avarice, of course), it always take your money away. Buy cheapest shoes, clothes, cars. You have only one true hobby - MONEY. And when it's time to die, you can donate all your wealth to some charity or religious organization, to avoid exessive taxation. Sounds as a good plan for you? Go ahead, buy and read this book.

  15. 4 out of 5

    Malin Friess

    The Millionaire Next Door is a 5 star book with a 1 star title (It sounds too greedy..how about secrets of those who have saved well)...less sexy, but more humble. My brother in law recommended this book after he began talking about PAW's (prodigious accumulators of wealth) and UAW's (underachieving accumulators of wealth). It turns out this book was for sale at the Goodwill for 1.99..maybe shopping at the Goodwill was the surprising secret of America's Wealthy...I had to find out! So I picked o The Millionaire Next Door is a 5 star book with a 1 star title (It sounds too greedy..how about secrets of those who have saved well)...less sexy, but more humble. My brother in law recommended this book after he began talking about PAW's (prodigious accumulators of wealth) and UAW's (underachieving accumulators of wealth). It turns out this book was for sale at the Goodwill for 1.99..maybe shopping at the Goodwill was the surprising secret of America's Wealthy...I had to find out! So I picked out 2 crisp dollars out of my wallet (Goodwill does not charge tax...nonprofit) and made my purchase. Dr. Stanley and Dr. Danko try to unravel systematically and statistically the secrets of those that have assets of greater than one million dollars. When we think millionaire we think of Donald Trump, Mitt Romney, George Soros..these are misconceptions....Here are the facts about millionaires 1- 2/3rds are self employed in dull or normal jobs like farmers, contractors, pest controllers 2- 97 % own a home..most have occupied this home for over 20 years (they don't continue to buy up...Warren Buffet still lives in his same home in Ohama..and so does Rick Warren in SoCAl) 3- 80% are first generation affluent and did not receive any inheritance 4- They live below their means..most spend less than 20 k on cars (most drive cars at least 5 years old), less than 80 dollars on shoes, and well under 200 dollars on suits 5- Well educated, 6% PhD's, 18% masters, 6% medical degrees 6- But only 17 % ever attend private elementary or high school PAW's budget carefully, and save save save. They are not concerned with keeping up with Jones. They don't care about having the right car, furniture, suit, etc. They eschew being "mass consumers...and value financial freedom and the time and ability to do what they want to do and when they want to do it. They are highly against giving large gifts to adult children (although they do support helping kids out with college). In fact they believe (and claim research shows) that giving adult children large cash gifts increases their odds of being poor..it diminishes their incentive to take risks, work hard, and learn how to be productive. There is a lot to agree with this book..it affirms that you must play defense (spend carefully) not just play offense (try to earn more) to be successful financially (although this book does infer money is not everything). It also affirms that we live in a country of opportunities where normal people with creative business ideas and hard work teamed with careful budgeting and savings can become financially independent. Interestingly this book claims doctors are poor PAW's...they are too altruistic and often give their services and money and time away. My only complaints...This book was written in 1996..so it could use an update (with the internet and economic collapse of 2007-2008). Secondly it could extend more information on to specifically how PAW's invest. 5 stars...I read this book in a few days. It held my attention.

  16. 5 out of 5

    Sabine

    I very much enjoyed listening to this audio book. It was very interesting, easy to understand and not boring at all. The bottom line is Millionaires and those wanting to become Millionaires live well below their means. People wanting to look rich will never accumulate any wealth since they are busy paying off debts. This book talks mainly about self employed people but everyone with a decent household income living frugal and investing money can become a financially independent. A highly recommend I very much enjoyed listening to this audio book. It was very interesting, easy to understand and not boring at all. The bottom line is Millionaires and those wanting to become Millionaires live well below their means. People wanting to look rich will never accumulate any wealth since they are busy paying off debts. This book talks mainly about self employed people but everyone with a decent household income living frugal and investing money can become a financially independent. A highly recommended read.

  17. 4 out of 5

    Julia

    The book points out that many millionaires do not look rich, they are frugal people who live below their means and save money. I feel like I was convinced after the first few chapters, and was annoyed to find the rest of the book just rehashing its main thesis over and over again.

  18. 5 out of 5

    Jared

    The Millionaire Next Door is a summary of the research of two men who have come to some surprising conclusions about the wealthy in America. For instance, they found that almost two-thirds of America's wealthy are first-generation rich. They also talk about a number of the characteristics of those who become wealthy. It turns out that attitude toward money has a much greater impact on wealth than income or occupation. The book is filled with lots of fascinating facts and statistics. The authors The Millionaire Next Door is a summary of the research of two men who have come to some surprising conclusions about the wealthy in America. For instance, they found that almost two-thirds of America's wealthy are first-generation rich. They also talk about a number of the characteristics of those who become wealthy. It turns out that attitude toward money has a much greater impact on wealth than income or occupation. The book is filled with lots of fascinating facts and statistics. The authors describe two general classes of people: under-accumulators of wealth, and prodigious accumulators of wealth. They also provide a pretty safe metric to determine which one you are: "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." The book is dry at times, and could probably have been slimmed down to about half its size without losing any meaningful content. The authors tend to repeat themselves a lot. But the conclusions that they come to are fascinating, and provide an interesting look at how the wealthy become wealthy -- and why their children usually aren't.

  19. 5 out of 5

    Krista

    Lots of information that made me think differently. It also went in some direction that I wasn’t expecting. Very good.

  20. 5 out of 5

    Greta

    Very informative book with a lot to offer to readers. Principles and rules are what makes anyone succeed and prosper. It's a good read Very informative book with a lot to offer to readers. Principles and rules are what makes anyone succeed and prosper. It's a good read

  21. 5 out of 5

    Max McCann

    So, I'm on this kick lately where I'm trying to read books that will help me get my money right. This book, however, was an utter waste of time. Here's the whole book: "Statistically, most millionaires do not lead extravagant lives. Many are actually quite frugal. That is likely why they are millionaires." How they managed to stretch that into 300+ pages I will never know. So, I'm on this kick lately where I'm trying to read books that will help me get my money right. This book, however, was an utter waste of time. Here's the whole book: "Statistically, most millionaires do not lead extravagant lives. Many are actually quite frugal. That is likely why they are millionaires." How they managed to stretch that into 300+ pages I will never know.

  22. 5 out of 5

    Michael Slavin

    This is not really a business book, but shows you how all kinds of what one would consider ordinary people become millionaires. It is most often a combination of owning a business and not being wasteful of the money and resources that you earn. At the time it was written it opened many peoples eyes.

  23. 5 out of 5

    Sonia Gomes

    Main message Save and Invest Most of the ideas in this book are explained rather well with a lot of good Case Studies. However, I did not like the idea that we should not give to charity, we all need help, other than that its a real good book

  24. 5 out of 5

    Nancy

    As I read The High-Beta Rich: How the Manic Wealthy Will Take Us to the Next Boom, Bubble, and Bust, this book comes back to me. I read it while my son was in college as a "pre-business" (really "I don't know what I want to do") major. I feared he was developing an unrealistic get rich quick attitude so was pleased to discover this book and give him a copy for Christmas. I wouldn't say it changed his life or mine, but it gave us a framework to talk about work and planning which I found useful. W As I read The High-Beta Rich: How the Manic Wealthy Will Take Us to the Next Boom, Bubble, and Bust, this book comes back to me. I read it while my son was in college as a "pre-business" (really "I don't know what I want to do") major. I feared he was developing an unrealistic get rich quick attitude so was pleased to discover this book and give him a copy for Christmas. I wouldn't say it changed his life or mine, but it gave us a framework to talk about work and planning which I found useful. Writing this review more than a decade after reading the book, I don't remember all the details, but I do remember one central point--live below your means. Also I recall that Stanley entertained me with stories about a number of individuals and families to illustrate his points making this a very accessible financial planning book.

  25. 5 out of 5

    Jason Pettus

    Amazon has recently started a new service called "Prime Reading," in which they offer a limited selection each month of older Kindle titles that Prime members can read for free (which differs from the "Kindle Owner's Lending Library" in that you can check out as many books as you want, versus the Lending Library where you can only read one book a month); and this classic '90s financial self-help book was part of their initial offerings, so I decided "what the hell" and checked out a copy, especi Amazon has recently started a new service called "Prime Reading," in which they offer a limited selection each month of older Kindle titles that Prime members can read for free (which differs from the "Kindle Owner's Lending Library" in that you can check out as many books as you want, versus the Lending Library where you can only read one book a month); and this classic '90s financial self-help book was part of their initial offerings, so I decided "what the hell" and checked out a copy, especially since I'm trying to learn a lot about personal finance in my personal life these days anyway, because of being on the cusp of accepting my first middle-class job of my entire life. For those who don't know, this is sort of the foundational text for all those popular online "frugal hipster" writers who have become so popular post-2008 economic meltdown, the runners of such websites as Mister Money Mustache and The Four-Hour Workweek and The Simple Dollar, based on a premise that was shocking at the time it came out; at the tail end of the Yuppie Era, a group of economics professors did long-form interviews with several hundred American millionaires, and discovered that the vast majority of them are people you would never expect to be rich, often living in lower-middle-class neighborhoods and having jobs to match, who drive used cars and seldom if ever take resort-based vacations. This book, then, divulges the secrets behind how these "everyday millionaires" acquired their money, which is basically the kind of no-nonsense, readily apparent advice that's become standard knowledge by here in the 2010s; spend less than you make, stay out of debt, maintain most of your wealth as investments and live off the returns, don't buy fancy things simply for the sake of impressing your neighbors, etc. So as such, then, you can actually learn a lot more about the nitty-gritty contemporary details of enacting such a plan through the frugality blogs like the ones I mentioned and others; but certainly it wouldn't hurt to read this "frugality bible" that lays down the blueprint for all the others, even if it does suffer from a problem hugely common in these kinds of self-help books, of being a full-length manuscript but only containing about a magazine article's worth of actual useful information. A great afternoon skim if you're picking it up for free, like at your local library or through Amazon's Prime Reading program, but I'm not sure I'd recommend paying twenty bucks for a brand-new copy you permanently own.

  26. 4 out of 5

    Marie

    TL;DR: most millionaires get rich slow, save 20% every year, and watch their budgets like a hawk. If you are looking for a get-rich-quick primer, you will be disappointed. ;) I, personally, found it an educational and inspiring read. One of my major goals this year is to set a stronger financial foundation for myself and my family, so I've been poring over a number of books on the subject. This is a great book in the sense that it helps you understand, from a well-researched perspective, the habit TL;DR: most millionaires get rich slow, save 20% every year, and watch their budgets like a hawk. If you are looking for a get-rich-quick primer, you will be disappointed. ;) I, personally, found it an educational and inspiring read. One of my major goals this year is to set a stronger financial foundation for myself and my family, so I've been poring over a number of books on the subject. This is a great book in the sense that it helps you understand, from a well-researched perspective, the habits of people that accumulate money. Possibly the most valuable insight is that the millionaire next door doesn't act like the stereotypical mass market version of a millionaire. They don't spend much, if any, money on displays of wealth, they save and budget assiduously, and their money is accumulated over a long period of time. In fact, the author states that most of the millionaires made under six figures in annual salary, and that it took them on average 20+ years to build a million dollars of wealth. The other key is that millionaires don't save money so they can spend it on big-ticket purchases like yachts or luxury clothing. Their main goal is financial independence. This really struck a chord with me as I realized that many of these millionaires are ordinary people like you and me that decided to build their wealth so they could be safe and secure in their future. They made many sacrifices along the way and did not change their lifestyles once they reached their millionaire status. Some parts of the book did rub me the wrong way. There was almost a deification of the blue collar entrepreneur. The author sounded breathless with his effusive praise of this particular brand of millionaire. I appreciate the hard work that went into their success, but I bristled at the author's implication that this was somehow the only or superior way to build wealth. There was also a lengthy section where the author expressed his and other millionaires' disdain for paying taxes, and how important it was to millionaires to lower their tax burden as much as possible, particularly at their death. This I also found distasteful. It's one thing to try and minimize your taxes, and quite another to act as though you shouldn't have to pay them altogether. All in all, a good book, just don't treat it as gospel.

  27. 5 out of 5

    Christian D. Orr

    Eye-opening and thought-provoking! Very eye-opening and insightful. Reading this book really gets you thinking; among other things, it's motivated me to modify my savings & investment approach. RANDOM STREAM OF CONSCIOUSNESS NOTES AND OBSERVATIONS (and noteworthy passages): --FROM THE PREFACE (written by Dr. Thomas J. Stanley in 2010): "Since 1980 I have consistently found that most millionaires do not have most of their wealth tied up in their stock portfolios or in their homes....Not at any time Eye-opening and thought-provoking! Very eye-opening and insightful. Reading this book really gets you thinking; among other things, it's motivated me to modify my savings & investment approach. RANDOM STREAM OF CONSCIOUSNESS NOTES AND OBSERVATIONS (and noteworthy passages): --FROM THE PREFACE (written by Dr. Thomas J. Stanley in 2010): "Since 1980 I have consistently found that most millionaires do not have most of their wealth tied up in their stock portfolios or in their homes....Not at any time during the past thirty years have I found that the typical millionaire had more than 30 percent of his wealth invested in publicly traded stocks." I don't blame them; at least a savings account, shitty though the interest rate may be, is FDIC-insured. Seiko #1 brand of watch among millionaires! Hmmm, somebody tell that to some of my former Quixtar biz partners (the same ones who hate dogs). "Even most multimillionaires in America don't live in expensive homes." Yeah, I wouldn't need a big-ass mansion myself...just a decent-sized garage to store my excess packrat stuff. I'm reminded of that 2015 study that showed that people who spend money on "experiences" are happier than those who spend money on "things." "America is still the land of opportunity. Over the past 30 years I have consistently found that 80 to 85 percent of millionaires are self-made."

  28. 4 out of 5

    Philip Siegel

    I can't believe I didn't write a review for this book when I first read it. TMND is one of the best books I've ever read and will go into the elite pantheon of books I won't stop recommending. The authors showcase the real millionaires in this country -- not the celebrities or heiresses or CEOs with golden parachutes that we think of. Using comprehensive data, they reveal that true millionaires and those with true wealth, are average, unassuming people like you and me. They work hard (usually fo I can't believe I didn't write a review for this book when I first read it. TMND is one of the best books I've ever read and will go into the elite pantheon of books I won't stop recommending. The authors showcase the real millionaires in this country -- not the celebrities or heiresses or CEOs with golden parachutes that we think of. Using comprehensive data, they reveal that true millionaires and those with true wealth, are average, unassuming people like you and me. They work hard (usually for themselves), save, invest, spend wisely, and don't try to keep up with the Joneses. The people we think of as rich are little more than living paycheck to paycheck. It's an eye-opening book that will change the way you think.

  29. 5 out of 5

    Yulia

    This book, now a classic, casts a spotlight on how many of the most financially secure individuals are not, in fact, those who live in the biggest homes, wear the most expensive suits, and drive the fanciest cars. Rather, they're the individuals who resist the incessant pressure to keep up with the Joneses (a.ka. Kardashians) and insist on living within their means. Although its investment advice is not sound (investing in what you know encourages overconfidence and familiarity biases, among oth This book, now a classic, casts a spotlight on how many of the most financially secure individuals are not, in fact, those who live in the biggest homes, wear the most expensive suits, and drive the fanciest cars. Rather, they're the individuals who resist the incessant pressure to keep up with the Joneses (a.ka. Kardashians) and insist on living within their means. Although its investment advice is not sound (investing in what you know encourages overconfidence and familiarity biases, among other pitfalls) and some of the advice is misleading, speaking to a time of greater socioeconomic mobility, it's important to remember still that flash costs cash. Keep your fixed costs low and you'll have a much better chance of achieving financial security, both now and into your retirement.

  30. 4 out of 5

    LeeTravelGoddess

    Ok, for those that wish to live a simple lifestyle to accumulate wealth, this book is for you! It is FOR US as I am a Millionairess in the Making 💚. The concepts are simple and the answers seem to be too easy but for someone that loves plush things, I also know it unnecessary to have all sorts of things. Great book, Great Info!

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