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Preview — The Millionaire Next Door by Thomas J. Stanley
The Millionaire Next Door
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...more
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...more
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....more
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)...more
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...more
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...more
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.
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...more
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...more
The book is filled with lots of fascinating facts and statistics. The authors...more
Hopefully this won't spoil the book, but here are some interesting s...more
And the title is so true...the person driving a new, luxury car every two years, taking the most extravagant and frequent vac...more
The key message from this book is that materialism is at odds with g...more
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...more
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...more
That said, I have some important reservations about the book. The authors seem to accept two common fallacies uncritically.
The first fallacy is that "girls have it harder". It's not so surprising that somebody writing in the early nineties would believe this, but I think today it has been fully disproven. Although men still make more money than wome...more
We tend to think of the “rich” as people with flashy cars...more
It turns out that a large percentage of millionaires are pretty boring. They tend to be the “F” word: Frugal. They tend to live in average neighborhoods, bargain shop for used cars, shop at stores like JCPenney and Sears, get $17 haircuts, and the snore list goes on and on.
“The Millionaire Next Door” chronicles the findings of the longest runnin...more