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The Millionaire Next Door

3.95 of 5 stars 3.95  ·  rating details  ·  29,747 ratings  ·  1,478 reviews

The incredible national bestseller that is changing people's lives -- and increasing their net worth!


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

Paperback, 258 pages
Published October 1st 1998 by Gallery Books (first published October 28th 1995)
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Popular Answered Questions

Ido Without question. Every chapter a surprise.
Also I would recommend reading Your Money Or Your Life
just in order to further enhance the messages.
The Total Money Makeover by Dave RamseyThe Richest Man in Babylon by George S. ClasonThe Millionaire Next Door by Thomas J. StanleyRich Dad, Poor Dad by Robert T. KiyosakiYour Money or Your Life by Vicki Robin
Best Books About Money
3rd out of 128 books — 257 voters
The Millionaire Next Door by Thomas J. StanleyThe Total Money Makeover by Dave RamseyThe Richest Man in Babylon by George S. ClasonI Will Teach You To Be Rich by Ramit SethiPirates of Financial Freedom by Joey Fehrman
Personal Finance
1st out of 78 books — 123 voters

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Community Reviews

(showing 1-30 of 3,000)
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Jul 22, 2008 Jay rated it 3 of 5 stars
Recommends it for: Everyone
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
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 ...more
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.
Chad Warner
Jan 03, 2011 Chad Warner rated it 3 of 5 stars  ·  review of another edition
Recommended to Chad by: Robert Kiyosaki
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)
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 ...more
Angela Alcorn
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 ...more
Jul 20, 2008 Viraj rated it 3 of 5 stars
Recommends it for: Those who have little to no clue about personal finances / overall economics of finance
Shelves: finance-etc
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
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
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 ...more
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
Jun 03, 2007 Ken rated it 1 of 5 stars  ·  review of another edition
Recommends it for: people needing a laugh
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.
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
Mar 23, 2007 stephanie rated it 5 of 5 stars  ·  review of another edition
Recommends it for: anyone planning on having a future worth living
I re-read this book, it may be the only one. That is how much I love it. Whenever our status-conscious, materialistic society starts to convince me that I need to buy more, drive a better car, living in a bigger home...I read this book.

This book reaffirms those of us who have chosen a lifestyle of living way below our means and making decision with our personal finances to meet personal life goals. If you have ever had an interest in learning more about how the truly wealth live, read this book
Malin Friess
The Millionaire Next Door is a 5 star book with a 1 star title (It sounds too 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 ...more
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.

MIllionaires can be tremendously dull; this book isn't. It is thought provoking and unexpected, if a touch dry. With so many people fascinated by glitz and bling, it is worth considering the relationship between appearing rich and being wealthy. This book has lots of great nuggets, but the upshot is that rich people often work doggedly at some fairly mundane businesses while living frugal and unpretentious lives (they generally don't divorce, move, or consume conspicuously). Certainly, this isn' ...more
A seriously great book. Makes you realize that the people who have a lot of things, are usually the people that don't have very much money and are generally living on credit cards, buying too many things. The people who you would never expect to have money, are usually the millionaires. It has a lot of statistics, which both of us "numbers" people loved!
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.
An interesting analysis of the life style behaviors that are statistically correlated with high levels of wealth. The authors do a great job of exposing the differences between appearing wealthy and actually being wealthy. Many Americans associate conspicuous consumption of luxury goods and services with wealth. But the authors demonstrate that the truly wealthy are far more likely to live in modest homes with middle class automobiles and clothing. While those with luxury homes, jewelry, clothes ...more
Mar 13, 2008 B rated it 4 of 5 stars  ·  review of another edition
Recommends it for: Everyone, especially young people
While this was an older edition, many of the principles discussed are timeless. This book discusses a number of studies of thousands of the country's wealthiest people from all walks of life. It examines who they are, what they do, how they live, how they see the future, what their values are, and generally how they got to the point where they are now. Perhaps just as interestingly, the authors discuss how _you_ can do the same.

Hopefully this won't spoil the book, but here are some interesting s
Jan 12, 2013 Doreen rated it 4 of 5 stars  ·  review of another edition
Recommends it for: everyone
Recommended to Doreen by: saw it at the library
Mindful purchasing, delayed gratification, living below one's means, saving and investing concepts?! Of course not! Actually, I love the information provided in this book and I am impressed with how well that information is presented here. The facts and advice are sound and necessary to every income-generating, merchandise-acquiring, bill-paying person alive!

And the title is so true...the person driving a new, luxury car every two years, taking the most extravagant and frequent vac
Thomas Stanley and William Danko teach the average American about the elusive habits of the wealthy upper-class in The Millionaire Next Door. Although they didn’t tell me anything I felt like I didn’t already know, I appreciated that they conducted research and presented hard data that backup up the intuition about the wealthy.

You should guess that small business owners compose the largest group of millionaires in America. Also, it has always been obvious to me that the people who save and inve
Skylar Burris
Despite the fact that it takes scores of pages to communicate a few basic points and that the author offers excruciating detail on things such as the car-buying habits of millionaires, I believe this is an important book that should be read by anyone who mistakenly believes that the long-term accumulation of wealth is determined almost entirely by income or that the majority of millionaires become wealthy through inheritance or pure luck.

We tend to think of the “rich” as people with flashy cars
We're all snoops. That's why I'm sure Thomas and William made bank off this little New York Times "Phenomenal #1 Bestseller" which promises to cough up "the surprising secrets of America's wealthy." Overall, this was an interesting read with some surprising statistics and anecdotes, although it was far too repetitive. I could come to two conclusions after reading this book: 1) I'll never become wealthy because my income is currently pathetic and I don't want to become the owner of a meat process ...more
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 ...more
Jul 30, 2009 shannon rated it 4 of 5 stars
Recommends it for: anyone trying to make sense of their finances
When you think about it, it's obvious that the more you spend the less you'll have and the less secure you'll be, but it takes a slight paradigm shift to become aware that most people who live in wealthy neighborhoods and drive expensive cars probably don't have anything close to the wealth they should; the more artifacts of status one purchases, the more one needs to consume in order to make one's outward appearance consistent.

The key message from this book is that materialism is at odds with g
Evan Farah
This book sets out to change the way you think about wealth. By making the important distinction between wealth and income these researches search the insights they have learned studying the wealthy, or independently financial. Once you change your mind frame from earnings to savings you will be taught the value of savings.

This book will not teach you finicial responbility but gives you inspirational examples and sets you off in the right direction- with proper fram of mind. Financial responibil
I loved The Millionaire Next Door, by Stanley and Danko. But then again, I love personal finance books, as they always help me think about my own finances in a more productive, healthy way.

Here are some of my favorite parts of the book. How do you determine if your're wealthy?

"Mulitiply 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."

What are three words that defi
Anton Klink
Having read the book about 10 years ago, I still remember sections of if quite vividly - and that, in my opinion, is the hallmark of a great book in and by itself. The book was eye-opening in many respects. The author had spent a great deal of time researching the millionaires of America and was thus able to give some excellent insights into who are the real millionaires. My take-away from the book was the fact that the truly rich are not the ones throwing around money and driving fancy cars. On ...more
This book has helped me have a better perspective on saving and thrift. Not that I want to apply everything because I think taken to the extreme you could become greedy and money focused. But being financially independent from debt gives you freedom to be generous and to affect change in other peoples lives. I think one thing that stuck out is that rich people spend more time managing their money. Not an exorbitant amount of time, but a reasonable amount. Plus they are actually willing to pay a ...more
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Dr. Thomas J. Stanley began studying the affluent in 1973. Stanley was a marketing professor at Georgia State University, a public speaker and consultant on selling to the rich.

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“Whatever your income, always live below your means.” 27 likes
“Good health, longevity, happiness, a loving family, self-reliance, fine friends … if you [have] five, you’re a rich man….” 18 likes
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