The Millionaire Next Door : The Surprising Secrets Of Americas Wealthy

The Millionaire Next Door : The Surprising Secrets Of Americas Wealthy | Thomas J. Stanley, William D. Danko, ... | Great Book!

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The Millionaire Ne...

	The Millionaire Next Door : The Surprising Secrets Of Americas Wealthy Thomas J. Stanley, William D. Danko, ..., 2000 average customer review:based on 796 reviews view larger image
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highly recommended

First step to becoming a millionaire....

Is learning how millionaires think and act! This book does just that! Please read this book for true understanding of what it takes to get there, no sugar coating in this book and straight to the point. MUST HAVE!

Great Book!

This book is great! Every person should read this book. I think that it brings out so many thoughts that are factual in nature. I loved it!!!

Great data-driven information on the American wealthy

This book is one of the most highly read and rated personal finance books and aptly so. The data-driven research reveals who the real millionaires in America are and its not the flashy, sports car driving individuals you might think. Its a very insightful look ino the lives, habits and finances of America's wealthy, covering a wide range of topics from purchasing watches and cars to economic outpatient care and self-employed business owners.
Although the amount of data presented can become dry and redundant at times as other reviewers have stated (my main reason for 4 instead of 5 stars), the information is there for those who want to take a deeper dive into the numbers behind the summarized observations.
Overall, this book presents some great personal finance lessons and is highly recommended, along with the simple lessons to be learned in "The Richest Man in Babylon"

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Underlying assumptions

This is an interesting book with some insights to offer. Though these ideas are not earth-shattering or new, the presentation is novel, increasing the chance that some of the simple and clearly true advice offered may actually sink in. On the other hand, the authors have some underlying moral assumptions which they themselves may not realize are dubious, and which color their work,

This is what I mean: First, as to their insights, the authors demonstrate how wealth is acquired and maintained by the people who actually accumulate it, millionaires and/or those people who retain and build on a sufficient portion of what they earn to become financially independent. They define this as an ability to continue indefinitely in their current or similar lifestyle, without any additional earnings.

Theses people have certain traits and choices in common- a lot of which would be admirable without reference to money- such as doing what they think is appropriate and sensible, rather than what their neighbors do and admire. They drive used cars, instead of wasteful new vehicles, spend on education for their children, rather than fancy clothes, etc.

Perhaps most importantly, from a financial perspective, they live at or below their means, and save and invest a substantial portion of their income. In a time when our personal and national debt has come home to roost, this can seem like utter genius. Sure, we all know it, but as a group, we seem to have been entirely unable to execute this feat. If you want to know how to plant a garden, ask the guy who has long maintained a beautiful garden himself, otherwise, ask his gardener- not the person with a scabby yard full of weeds- even if he has a degree in horticulture. Probably.

We live in a fantasy world, fueled by the unrealistic media image of the lifestyles of ordinary people- who are waitresses and aspiring actors (eg "Friends"), yet share spacious New York apartments that a merchant banker could barely afford. Advertisements of credit card companies tell us that these and other acquired luxury goodies are what we deserve, and offer them to us in exchange for signing over our futures to indentured debt servitude.

I buy much of this advice, especially the part about not spending more than I earn, and hope to win the struggle to avoid debt and save and invest enough to retire without living on dogfood. It is an interesting presentation, done via tons of data about what wealthy people actually do. Despite being dated statisically, this evidence makes the author's points convincingly; I'd bet that further data collection would be consistent with their first 2 efforts.

I do, however, see a fundamental flaw in the authors' value system. They so admire their exemplary subjects for their courage and common sense that they are utterly uncritical of their priorities. The accumulation of wealth to the extent of leaving an estate behind at death is the virtue, while all spending of earnings beyond that necessary for a modestly comfortable life (with the possible exception of certain charitable contributions) is presumed to be in aid of a pretentious and contemptible seeking of status and/or empty, transient amusements.

Phooey. The authors themselves admit that subsidized children of the wealthy are crippled by an inability to imagine a less luxurious lifestyle than that provided for them- so what's the point of having more than you need to retire fearlessly, if you want to, or if it becomes necessary? Money in a big pile for when you die- or as an abstract measure of your accomplishnent or worth-is useless and, dare I say it- greedy.

Money spent on education for its own sake, making or supporting art and the environment, travel, research, and other life enriching activities should not be viewed as status seeking, useless behaviour; it is money well spent. A life boiled down to economic survival is a desperate existence, and if we are lucky enough, and disciplined enough to be able to provide for own financial survival, in my world view, it is a waste and a sin to ignore all of opportunities for a life that is so much more.

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