Author: Thomas J.Stanley, Ph.D. and William D.Danko, Ph.D.
Number of Pages: 258 Pages
Publisher: Pocket Books
The Millionaire Next Door is about the research done by the authors, Thomas Stanley and William Danko on US households with net-wealth over a million dollars. According to the authors, this is the most comprehensive research conducted on wealthy people of the US.
The authors found interest facts about these people, including the fact that they live well below their means and that 80% of America’s millionaires are first-generation rich! How interesting is that! Among other things discussed are the lifestyle, spending habits and choices made by these millionaires.
The authors categorized these wealth accumulators into 3 groups based on their net-wealth compared to their income and age:
• Prodigious Accumulator of Wealth (PAW)
• Average Accumulator of Wealth (AAW)
• Under Accumulator of Wealth (UAW)
With the simple formula provided by the author, you can find out the health of your wealth. If you want to know how the riches live, you should read this. Seeing a person living and spending lavishly does not necessary mean that he or she is well-off and vice versa.
The Millionaire Next Door definitely made me confident of my choices and not feel shy for not having those luxurious items that even though I could afford it, I actually don’t need it. We all know these logics, these aren’t rocket science but somewhat practicing it isn’t easy with too much of temptation out there. Hence, to know that actual millionaires live a simple life, really motivates us to do so. It does not matter what car you drive or what brand handbag you carry, what matters more is what’s your net-wealth!
Even though the research was done in the 90s, the content of this book is still very much applicable. It is also still applicable to a good extend to people from other continents even though the research is done on the millionaires in the US. This is an informative and interesting book that should not be missed.
There are some books that I keep to revisit later – this book falls under that category in my bookshelf!
The Millionaire Mind: Offers The Keys To Real Wealth Today.