The Millionaire Next Door: The Surprising Secrets of Americas Wealthy

by Thomas J. Stanley

The advertising industry and Hollywood have done a wonderful job conditioning us to believe that wealth and hyperconsumption go hand in hand. Yet, as I have said many times, the large majority of the rich live well below their means.

Check out this quote.

In general, the longer the average member of an ancestry group has been in America, the more likely he or she will become fully socialized to our high-consumption lifestyle.

It makes sense.

All too often people allow their income to define their budgets.

They became millionaires by budgeting and controlling expenses, and they maintain their affluent status the same way.

Financially independent people are happier than those in their same income/age cohort who are not financially secure.

If you’re not yet wealthy but want to be someday, never purchase a home that requires a mortgage that is more than twice your household’s total annual realized income.

If you are wealthy and want your children to become happy and independent adults, minimize discussions and behavior that center on the topic of receiving other people’s money.