The Millionaire Next Door
What do you think of when you hear the word millionaire? Do you envision fancy cars, expensive attire, sparkly jewelry, an elaborate mansion? I know I did, that is until I read the book “The Millionaire Next Door” by Thomas J. Stanley and William D. Danko. Did you know that your typical millionaire may be living in your neighborhood or sitting at the next table over in your favorite family restaurant? The book is based on in-depth interviews and research of American millionaires and how they are able to stay wealthy by being frugal and not overspend.
“American society’s expectations are not congruent with the reality of most American millionaires”, is directly quoted from the book, and is something I agree with
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Most millionaires are married couples, and have a spouse that is usually as frugal as them if not more! Usually in most cases the man is making the most money and the woman is in charge of the spending and family budget. The woman usually hardly spends any of the money which contributes to their accumulation of wealth. One thing millionaires do believe spending money on is their children’s education. Education is very important to millionaires, although a vast majority of them had little or no college and are small business owners. This book gives so much insight on how to own and operate a small business to start accumulating wealth. It gives you the opportunity to truly realize that being wealthy does not lie in the material things but the budgeting and planning to ensure your financial future. Making expensive purchases does not help your future finances nor will the value of the items appreciate, they will only depreciate. Stocks are one thing in this book that they showed will definitely help your wealth accumulate. The authors said that nearly 95 percent of all the millionaires interviewed own stocks. This does not mean that these millionaires are actively involved in the trading of stocks; in fact according to the book over 40 percent have not traded stock in six or more years. This book constantly reminds you to invest and save money! Budgeting and planning is key, always. That is what