Filed under Book Review, Finance, Fun, General, Household, Payroll, a little about life
Full Title: The Millionaire Next Door, The Surprising Secrets of American’s Wealthy by Thomas J. Stanley and William D. Danko
Get it cheap.
Summary: Have you ever wondered what the wealthy in America do for a living? What they drive? Where they shop? How they spend their spare time? The interesting part of this story is they live middle to upper-middle class lives, drive cars which will get them by, and typically work as professionals or small business owners. That’s right, they are just like me and you. Typically they do not come from families with large a inheritance and most often put themselves through college. Surprising enough, many of them are self made millionaires. This book also argues their current lifestyle of frugality sprouts from their childhood, and they would have never made this ’status milestone’ without that prior lifestyle.
What I thought: This was a very interesting book. Although, it seemed obvious that somebody who were to save 20% of their income year after year would become a millionaire, I did not exactly know who was doing this kind of savings. I also found it interesting that families typically do not have millionaire children. This comes from their parents establishing a lifestyle which the children cannot hold until they are well into a career. In order to keep that lifestyle, they ask for or receive gifts from their parents while not saving. The moral of the story is to get a college degree, get a nicely paying job or start a company, invest extra (typically 20%+ in these cases) income, live below your means, educate yourself of your financial situation and the situation of your country/world, and be happy with life not the furniture and other toys.