The Millionaire Next Door
"The Millionaire Next Door" by Thomas J. Stanley and William D. Danko is a bestselling book on personal finance and wealth management. The book was first published in 1996 and has since become a classic in the genre.
The book is based on a comprehensive study of millionaires in the United States and the authors present their findings on the common traits and behaviors that helped these millionaires accumulate their wealth. The authors challenge commonly held misconceptions about the wealthy, such as the belief that millionaires spend their money on lavish lifestyles, and instead present a picture of wealthy individuals who live modestly, work hard, and make smart financial decisions.
The authors also emphasize the importance of living below one's means, avoiding debt, and investing wisely in order to build wealth over the long term. They provide practical advice on how to do this, using real-world examples to illustrate their points. The book is written in an engaging and accessible style that makes it easy for readers to understand and apply the principles presented.
"The Millionaire Next Door" has been highly praised for its practical advice and its emphasis on building wealth through disciplined habits and hard work. The book is a valuable resource for anyone looking to improve their personal finances, regardless of their income level.
The main contents of the book
The main contents of "The Millionaire Next Door" by Thomas J. Stanley and William D. Danko are:
Introduction: The authors present the concept of the "millionaire next door" - individuals who have accumulated significant wealth through hard work and smart financial management.
The Characteristics of Millionaires: The authors present the common traits and behaviors of millionaires, based on their research. These include living below their means, avoiding debt, and investing wisely.
Wealth and Income: The authors examine the relationship between wealth and income, and argue that high income is not always a predictor of wealth.
Saving and Spending: The authors present strategies for saving and spending money, including the importance of tracking expenses and setting a budget.
The Power of Planning: The authors emphasize the importance of setting long-term financial goals and developing a plan to achieve them.
The Role of Education: The authors argue that education is an important factor in building wealth, and present data showing that most millionaires have a college degree.
Success Factors: The authors examine the factors that contribute to financial success, including hard work, discipline, and persistence.
Economic Outpatient Care: The authors discuss the concept of "economic outpatient care" - financial support provided to adult children or other family members - and how it can hinder wealth-building.
Affirmative Action, Family Wealth, and the American Economy: The authors examine the impact of affirmative action policies and family wealth on wealth-building in the United States.
Epilogue: The authors conclude by summarizing their findings and emphasizing the importance of disciplined financial management in achieving long-term financial success.
Overall, "The Millionaire Next Door" provides a comprehensive and practical guide to building wealth through disciplined money management and smart financial decision-making.
Lessons on personal finance and wealth management
"The Millionaire Next Door" by Thomas J. Stanley and William D. Danko presents a number of valuable lessons on personal finance and wealth management. Here are some of the key takeaways from the book:
Live below your means: The book emphasizes the importance of spending less than you earn, and of avoiding debt. The authors argue that the most successful wealth builders are those who are frugal and live modestly.
Invest wisely: The authors stress the importance of investing in a diversified portfolio of stocks, bonds, and other assets. They advise against investing in get-rich-quick schemes or making speculative investments.
Work hard and be disciplined: The book highlights the importance of hard work and discipline in building wealth. The authors argue that successful millionaires are often those who work long hours and are disciplined in their approach to money management.
Focus on long-term goals: The authors stress the importance of thinking long-term when it comes to building wealth. They encourage readers to set long-term financial goals and to focus on strategies that will help them achieve those goals.
Surround yourself with like-minded people: The book suggests that successful wealth builders often surround themselves with others who share their values and goals. This can help create a supportive environment that encourages disciplined money management.
Overall, "The Millionaire Next Door" provides a practical and actionable guide to building wealth over the long term. The book emphasizes the importance of discipline, hard work, and smart financial decision-making in achieving financial success.
Here are some great quotes from "The Millionaire Next Door" by Thomas J. Stanley and William D. Danko:
"The millionaire next door is an individual who has accumulated a net worth of one million dollars or more through prudence and lifestyle choices, rather than through high income and lavish spending habits."
"The most successful wealth builders are those who live well below their means and invest in a diversified portfolio of stocks, bonds, and other assets."
"The key to building wealth is to spend less than you earn and invest the difference wisely."
"Successful millionaires often work long hours, are disciplined in their approach to money management, and focus on long-term financial goals."
"Education is an important factor in building wealth, and most millionaires have a college degree."
"The biggest mistake people make in building wealth is to spend too much money on things that do not appreciate in value, such as cars and clothing."
"Economic outpatient care, or financial support provided to adult children or other family members, can hinder wealth-building and financial independence."
"Success in building wealth requires hard work, discipline, and a long-term perspective."
"The true measure of wealth is not how much money you make, but how much you keep and accumulate over time."
"The millionaire next door is often invisible in society, living a modest lifestyle and avoiding ostentatious displays of wealth."
About author
Thomas J. Stanley, Ph.D. was a researcher, writer, and lecturer who specialized in the study of wealth and affluent individuals. He was a professor at the University of Georgia and conducted extensive research on the habits and behaviors of millionaires, which formed the basis of his best-selling books, including "The Millionaire Next Door". He was also the author of "Stop Acting Rich... And Start Living Like a Real Millionaire" and "The Millionaire Mind".
William D. Danko, Ph.D. is a former professor of marketing at the School of Business, State University of New York at Albany, where he specialized in the study of consumer behavior and marketing. He has written extensively on the subject of wealth and the affluent market and co-authored "The Millionaire Next Door" with Thomas J. Stanley. He is also the author of "Richer Than a Millionaire: A Pathway to True Prosperity".
Review book "The Total Money Makeover"
"The Millionaire Next Door" by Thomas J. Stanley and William D. Danko is a highly acclaimed book that has been praised for its practical advice on building wealth through disciplined money management and smart financial decision-making.
The authors present the common traits and behaviors of millionaires, based on their extensive research, and argue that high income is not always a predictor of wealth. They examine the relationship between wealth and income and present strategies for saving and spending money, emphasizing the importance of tracking expenses and setting a budget.
One of the book's strengths is its emphasis on the importance of education in building wealth, and the authors present data showing that most millionaires have a college degree. They also discuss the factors that contribute to financial success, including hard work, discipline, and persistence.
The book's analysis of the impact of economic outpatient care, or financial support provided to adult children or other family members, on wealth-building is also insightful, and the authors argue that it can hinder financial independence.
Overall, "The Millionaire Next Door" provides a comprehensive and practical guide to building wealth through prudent financial management, hard work, and a long-term perspective. It is highly recommended for anyone seeking to improve their financial situation and achieve long-term financial success.
The implication of The Millionaire Next Door...is that nearly anybody with a steady job can amass a tidy fortune. - Forbes;
The kind of information that could lift the economic prospects of individuals more than any government policy...The Millionaire Next Door has a theme that I think rings very true..."Hey, I can do it. You can do it too!" - Rush Limbaugh;
[A] Remarkable book. - The Washington Post;
A nerve has been hit....[For] people who want to become wealthy. - USA Today;
A primer for amassing wealth through frugality. - The Boston Globe;
An interesting sociological work. - Business Week;
A fascinating examination of the affluent in American society. - The Dispatch (Lexington, NC), (Nc) Dispatch;
These, for the wise, are tips for all of us....A very readable book. - Cox News Service;
Debunks the image of the rich as high-living spendthrifts. - U.S. News and World Report;
I love the book, The Millionaire Next Door. It talks about how it is a myth that most millionaires in America have inherited their money. The fact is, we have created such a great country over 250 years. We have actually found the way for poor people to go from nothing to huge wealth and to create a life-changing opportunity for their children and grandchildren. We celebrate it, write movies about it, and our libraries are full of books about it. There is nothing wrong with that. - Bernie Sanders;
The authors mine reams of data to show the surprisingly frugal traits millionaires have in common. "The main lesson provided is that high income does not equal wealth," said J.R. Rosskamp, managing director of Veritas Partners, Inc., a business consulting firm. Rosskamp calls "Millionaire Next Door" a "must read, and the earlier the better." - Chicago Tribune;
The authors mine reams of data to show the surprisingly frugal traits millionaires have in common. "The main lesson provided is that high income does not equal wealth," said J.R. Rosskamp, managing director of Veritas Partners, Inc., a business consulting firm. Rosskamp calls "Millionaire Next Door" a "must read, and the earlier the better." - Chicago Tribune;
Global ratings
On Amazon, "The Millionaire Next Door" has a 4.6 out of 5 stars rating with over 11,500 customer reviews. On Goodreads, the book has a rating of 4.06 out of 5 stars with over 101,000 ratings and over 4,300 reviews. These ratings suggest that the book has been well-received by readers and is considered a valuable resource for those seeking to build wealth and achieve financial independence.
Product details
Publisher : Taylor Trade Publishing; Reissue edition (November 16, 2010)
Language : English
Paperback : 272 pages
ISBN-10 : 1589795474
ISBN-13 : 978-1589795471
Item Weight : 10.4 ounces
Dimensions : 5.88 x 0.79 x 9.06 inches
Best Sellers Rank: #888 in Books (See Top 100 in Books)
