©2000 Thomas J. Stanley, Ph.D. and William D. Danko, Ph.D.; (P)2000 Simon & Schuster, Inc., All Rights Reserved, SOUND IDEAS is an Imprint of Simon & Schuster Audio Division, Simon & Schuster Inc.
"The implication of The Millionaire Next Door is that nearly anybody with a steady job can amass a tidy fortune." (Forbes)
It's so riddled with facts that I couldn't even listen anymore. If you're looking for advice on how to play it safe with your money to earn the title of "millionaire" then this book is for you. Don't waste your time or money on this book if you want to make millions. If you know anything about accounting, you know that profit = income > expenses. I'd rather be a multi-millionaire and live like a millionaire than be a millionaire and live like a middle class chump.
This book was written 20+years ago, but you can still learn plenty from the principles presented in it.
I resolve not to be a consumer who wastes away my chance at true wealth and security.
I really enjoyed this book, as a younger person who makes it well so far and am just getting familiar with personal finance, this really helps orient me to the basic psychology of wealth building and the paths one could take through the journey. it is good foundational knowledge I can use as a litmus as I become more engulfed in the world of personal finance.
Great book, the truth of the affluent. Wise men learn from the success and failures of others.
Loved it and intend to gift it to several loved ones! I wish there were an updated version using more contemporary statistics.
Read early in life
Illuminating from beginning to end, best financial advice for anyone!
Be frugal, save, invest wisely
Wealth = Offense + Defense
Gaining insights that suggest how real wealthy people behave, as opposed to the rubbish presented in media.
Cotter Smith is a rock star. I wish all audio books were performed by Cotter Smith. Purchasing Thomas Stanley's next book, The Millionaire Mind, was largely influenced by the fact that Cotter Smith was once again the narrator.
Average Accumulation of Wealth (AAW) = (age/10) * annual income
Prodigious Accumulation of Wealth (PAW) = 2 * AAW
Under Accumulation of Wealth (UAW) = 1/2 * AAW
This book is not a strategy or "how to" like many other books in the genre, like Rich Dad, Poor Dad or Total Money Makeover. But it provides a different point of view - a statistical point of view - as to the habits and priorities of wealthy people.
"Makes money sense"
Sobering read in todays instant gratification world. The chapters in this book will shift most peoples paradigms on wealth and its accumulation. The book provides a sages worth of attitude changing insights into why individuals need to be more conscious of money management. It indirectly also provides hope that with the right money and investment attitude, regardless of the level of current income, one can make steady progress towards a significantly improved financial position over the long run.
Fantastic this book has changed my life. This book is also recomended to me by Brian Tracy
"Spend 8 hours now to save 8 years work( or more ! )"
A must listen book about personal finance . Much of today's personal finance writing has been inspired by the findings from the studies discussed in this publication . Everyone will learn something about personal finances and importantly themselves in the stories told in The Millionare Next Door .
"A fascinating analysis of a rather niche topic"
The two authors have done vast amounts of thoughtful research into the spending patterns of affluent Americans, and the book often sounds like a market research report. This does not mean that it is not a fascinating piece of work, though I imagine it will not appeal to everyone. Thomas Stanley and William Danko set out a clear definition and analysis of what wealthy means, in their eyes. Their ‘wealth equation’ - age*gross annual income /10 - allows the authors to calculate an 'expected net worth' for individuals and thus determine whether a person is an accumulator (net worth > than estimate) or a spender (net worth < than estimate). They then compare the extremes, 'Prodigious Accumulators of Wealth' (PAWs) with ‘Under Accumulators of Wealth' (UAWs). This is in itself and insight. The key to being ‘rich’ (under their definition) is to live substantially below your means. In their world, PAWs are rich (even if they only have a net worth of $400k) and UAWs are poor even if they live the high life, subsidised by their parents or credit. This is actually more philosophical than financial – frugal PAWs feel financially secure and have the confidence that comes from being 'self-made', spendthrift UAWs worry about money and their old age. It’s very Mr Micawber: spend 19 pounds, 19 shillings and six pence, result happiness (though Micawber’s formula implies a surplus of 1/40 or 2.5%, S&D suggest you should aim for 10% or more). Stanley and Danko have also observed and then thought deeply about how the financial attitudes and behaviors of parents impact on their children. Many PAWs get it right by instilling the correct values of frugality and independence in their children. They help them with education and perhaps a house purchase or business investment, but they do not push cash gifts on their adult children. Unwise PAW parents use their wealth to cosset and/or control their children, while UAWs instill their spendthrift ways in their own offspring. Americans seem to think and talk more freely about money than we do in the UK, and the book is very US orientated, but I found it really useful to help me position myself in this domain. Obviously, the ideal is some Aristotelian virtuous median, to be neither a tight-wad, nor a spendthrift. This book will have a permanent impact on the way I handle the transfer of wealth to my own kids; I am going to spend more on myself (and my hardworking frugal husband) convinced that their independence is more valuable to our children than free cash.
"eye opener "
showed me different outlook on wealth really good book very educational i would highly recommend
I have listened to many wealth books and found this one quite different and very, very interesting. For example there was a section about how children of the wealthy can be inspired to be independent rather than just spend their parents' money. There was also insightful information about inheritance. Although the book is American and a little old now, I believe these principles still hold.
I did not expected to enjoy this book, but I did. I could not believe when the audiobook came to an end, I was so engaged.
I would very much recommend this book. I would say a must for parents who have adult children they are supporting, or those considering how to pass on their wealth to their offspring in the future.
"Nice read, no regrets."
It is a book that makes sense though some things were overemphasised but was necessary. The points were clear and reasonable.
"It all adds up."
Short but alot packed into it. worth listening to a few times.
very clear message it blows alot of the myth out of the sky.
So contrary to the public perceived image of how most millionaires are made or live
"Very interesting and revealing."
Can be quite stat heavy (which was great for me but might overwhelm some).
Interesting and revealing makes you consider your own consumption habit and what if any, legacy you will leave behind.
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