©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)
I thought this was going to be an interesting inside view into the lives of millionaires....who they are....how they got there. In fairness, I suppose it has some of that but it's delivered with a level of excitement comparabe to an accounting teacher reading from an Excel spreadsheet. The book could be reduced to a pamphlet-sized document that says, "If you aren't getting rich, you're spending too much money."...... over and over and over.
Initially I was very excited about this book but it turned into a struggled to find the will power to finish it. If it weren't for the fast-forward button, I wouldn't have made it. Particularly frustrating was the authors tendency to explain a simple subject with nauseating repetition. He went on and on and on about the right and wrong way to buy a car (according to millionaires of course). After I got the point, I rode the FF button a long time to get through that section.
Besides the repetition, the authors tone was the next most irritating quality. It wasn't enough to just explain methods millionaires us to be successful....he presents it in terms of smart vs. dumb. The frugal people do everything right and the non-wealthy people do EVERYTHING wrong. It was so heavily biased that I expected him to say that non-wealthy people produce ugly babies. He gives lots of kudos for people that don't take vacations, don't buy nice things, and save every penny while those that travel the world and/or enjoy doing things that require spending money are presented as inferior. I don't want to be too hard on the author but his presentation makes me think that he would charaterize Ebenezer Scrooge as one of the "smart" people.
The book provides interesting information about the habits of wealthy people but I was left with the highly unexpected feeling that I wasn't sure I wanted to be like them. Most of them try to live as close to poverty as possible. Memories of special occasions are described by most people I know as priceless. These people appear to prefer a mizer's life of pinching every penny. No thanks.....
PS. He LOVES the word "prodigious". That word actually got stuck in my head and echoed for days after listening to this book.
If you wish to retire as a paper millionaire, the basic advice presented in this book is sound, particularly if you happen to have disposable income. Careful planning, living below one's means, adequate income and proper investing can lead to economic self sufficiency. The book provides many examples of folks who did, indeed find financial success.
But there are issues with some of the advice the authors provide. Single minded dedication to amassing wealth is often penny wise and pound foolish. Living in better neighborhoods might be more expensive, but they are often safer, provide better schools, and may generally provide a better investment in real estate. Saving money by not going on vacation deprives both you and your children potentially life changing experiences. Hoarding money by not giving to charity, or even your own children, does it's own kind of spiritual damage.
The sections involving children are especially worrisome. If one follows the advice in this book religiously, a first generation millionaire family will likely end up a third generation pauper. It is important to teach children self sufficiency, but it is equally, if not more important, to teach one's children to manage million dollar investment portfolios, and to make informed decisions on budgeting and allocations of large amounts of money. After all, a wise person would not leave a large financial legacy without the tools to use it properly.
The generation of wealth is not a goal in itself. In one example presented in the book, a woman expressed the goal to retire with five million dollars. Yet in the process of doing so, they live like paupers. This woman might never see retirement, might never enjoy all that money she carefully hoarded, might forever miss out on the joys and experiences that wealth can provide. Save for retirement of course, but never forget that we only get one life.
And in the end, that's where this book fails. Truly wealthy people certainly plan for the future, invest properly, and save much of their income. Yet they also try to enjoy the fruits of their labor, and they share their wealth as much as possible.
If you are not a millionaire but want to be, read this book. It's much of what your upper middle class parents should have taught you, but it's not everything, If money is all you care about, you will do well to follow the advice in this book. Yet if you wish to lead a rich life, the kind of life full of experiences and learning and yes, even of civil responsibility, you will do well to moderate your zeal of living the frugal life outlined in this book.
A phenomenal book worth listening to. If you want a financial paradigm shift, The Millionaire Next Door can definitely help get you there. It's eye opening!
The key point in this book is by saving money and invest wisely, even with moderate income, people can get rich. I think the writer purposely crafted his message toward the "Majority" market not only because they are the most frustrated group, but also because they are the largest group. The subtle voice of "Although you are ordinary, you can do it too!", like cheesy infomercials at 2 AM, is very irritating. If you want to be a millionaire by: Never buy a set of suit for more than 500 dollars, or Never purchase a Luxury German automobile, or Never live in a house more than 200K dollars... read the book. For me, I want to maximize my income so I can SPEND it. Why be the lady who died in a low income neighborhood with 3 million dollars net worth that no one knows about. The sad thing is, she spent her whole life saving money and clipping coupons. What is the point?
I've always known it's what you save, not what you earn that makes a difference. I've always known spend less than you earn. but I had no idea what could happen if you did it properly. I'm sure there really are millionaires all around us, and I hope to be one someday.
The narrator sounded a little snooty, but that's OK.
The data in this book is priceless. There are plenty of precise figures and percentages, but after a while it gets rather repetitive. Sure, the detail-oriented financial advisors, attorneys and other high-pay professionals will love the shere amount of facts and figures, but for the average but ambitious Joe, the book could have been condensed in less than a half without any significant loss.
Very interesting book and so glad I purchased it. This gives you really good insight into how millionaires actually live and operate, treat their families and what accumulating wealth really means. Being frugal and making smart decisions. The data driven facts in this book are incredible, you'll be very surprised and possibly excited.
Narration of the book is great and very understandable. The authors voice and tone are also very good, some narrators have annoying voices or perhaps read the text differently than perhaps I am accustomed to reading or listening to. This one is great and I recommend for all. It's not a waste of money or a credit. Enjoy!!!
"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
"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.
"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 .
"You'll simply learn from this"
Why don't they teach you in school this, compound interest. It's simple, save invest live less wildly and don't borrow. If you don't learn from the examples in this book then you don't want to learn.
"Well worth a listen!"
Some good ideas about making the difference between living the high life or choosing to live modestly in order to build wealth.
"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.
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