The Millionaire Next Door

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.

9 of 10 people found this review helpful

Briliant.

Fantastic this book has changed my life. This book is also recomended to me by Brian Tracy

9 of 10 people found this review helpful

Very Different!

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.

Recommended.

2 of 2 people found this review helpful

Helps you realise long-term success for yourself

Would you listen to The Millionaire Next Door again? Why?

Yes, it's fundamental message is built on upon long-term financial success, recognising what millionaire really is and it is not a yacht. My interpretation of this book is that it will help you identify what is good for you in the long-term, even in the mind-set and education of your children. It's based upon real life examples, and true advice. I recommend this book, but don't expect it to tell you to buy a Bugatti, because it certainly will not! It is simple book which will help you with purchases, independence, saving, investing & mind-set around money.

What other book might you compare The Millionaire Next Door to, and why?

Rich Dad, Poor Dad as it educates you on similar subjects such as Assets & Liabilities and sometimes our own enthusiasm to purchase the bigger, flasher things in life often hinder our opportunity to be financially free.

Which scene did you most enjoy?

My favourite line: Int: "What is your favourite charity to donate to?" Millionaire: "I am my favourite charity."

Was there a moment in the book that particularly moved you?

You buy flashy things for yourself, but really it is for others.

Any additional comments?

This book is a hearty dish of reality. There is no hairy fairness, although I am a big fan of the self help section, it will give you an honest reflection on the types of wealthy people, their purchasing and investing strategies.

1 of 1 people found this review helpful

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.

3 of 4 people found this review helpful

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 .

1 of 1 people found this review helpful

very insightful

I didn't know that I needed the wisdom from this book I am glad it was written the principles still stand years later and I will be putting them into action

Very good book

Learned a lot from reading this book. Will definitely recommend to my colleagues and friends.

What a book!

I’ve read a lot of books like this and this is by far the best. I’ve been recommending it to everyone.

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Full of wisdom, very engaging and tips for the future generation.
help with understanding money