The Millionaire Next Door

About the book

These are the results of detailed studies and observations conducted by Thomas Stanley and William Danko, who both have doctoral degrees. Their study shows the surprising characteristics of a good number of American Millionaires. This book does not aim to make simple generalizations of ALL wealthy Americans but instead explains in detail a list of seven common behaviors or factors for a substantial number of them. 

Contents

The book discusses in detail the seven factors that made wealthy Americans into who they are now, financially speaking. Some of these include: 1) they live well below their means, 2) they believe that financial independence is more important than displaying high social status and; 3) they chose the right occupation. Each chapter provides detailed statistics, examples, and results of the surveys they have conducted, based on a representative sample size.

Review

 

While some behaviors described in the book may not fit or describe accurately the behaviors of other wealthy individuals, it does teach us the important characteristics or traits that have made a good number of people comfortably wealthy. It is up to the reader to decide if he or she is up to the task of applying the same principles in his or her life. 

Difficulty Level = 2/5

This is an easy-to-read work. It is not as difficult to read as compared to a dissertation or thesis.

Personal Rating = 4/5

 

If you are more interested in reading about real people successfully applying some of the personal financial planning concepts/tips, then you should read more about this book.


Personal finance tip for today:

To live below your means that you earn more than what you spend. This does not mean that you have to live miserably. It is all right to spend on some luxuries and enjoy life so long as you still save a substantial percentage of your income and not use up those savings. 



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