The Millionaire Next Door (Paperback)

by Thomas J. Stanley (Author), William D. Danko (Author) "The person who said this was a vice president of a trust department..." (more)
Key Phrases: dealer loyalists, annual realized income, economic outpatient care, Johnny Lucas, Low Moderate Having, New York (more...)

Editorial Reviews

Amazon.com Review
How can you join the ranks of America's wealthy (defined as people whose net worth is over one million dollars)? It's easy, say doctors Stanley and Danko, who have spent the last 20 years interviewing members of this elite club: you just have to follow seven simple rules. The first rule is, always live well below your means. The last rule is, choose your occupation wisely. You'll have to buy the book to find out the other five. It's only fair. The authors' conclusions are commonsensical. But, as they point out, their prescription often flies in the face of what we think wealthy people should do. There are no pop stars or athletes in this book, but plenty of wall-board manufacturers--particularly ones who take cheap, infrequent vacations! Stanley and Danko mercilessly show how wealth takes sacrifice, discipline, and hard work, qualities that are positively discouraged by our high-consumption society. "You aren't what you drive," admonish the authors. Somewhere, Benjamin Franklin is smiling. --This text refers to the Hardcover edition.

From Library Journal
In The Millionaire Next Door, read by Cotter Smith, Stanley (Marketing to the Affluent) and Danko (marketing, SUNY at Albany) summarize findings from their research into the key characteristics that explain how the elite club of millionaires have become "wealthy." Focusing on those with a net worth of at least $1 million, their surprising results reveal fundamental qualities of this group that are diametrically opposed to today's earn-and-consume culture, including living below their means, allocating funds efficiently in ways that build wealth, ignoring conspicuous consumption, being proficient in targeting marketing opportunities, and choosing the "right" occupation. It's evident that anyone can accumulate wealth, if they are disciplined enough, determined to persevere, and have the merest of luck. In The Millionaire Mind, an excellent follow-up to the highly successful first analysis of how ordinary folks can accumulate wealth, Stanley interviews many more participants in a much more comprehensive study of the characteristics of those in this economic situation. The author structures these deeper details into categories that include the key success factors that define this group, the relationship of education to their success, their approach to balancing risk, how they located themselves in their work, their choice of spouse, how they live their daily lives, and the significant differences in the truth about this group vs. the misplaced image of high spenders. Narrator Smith's solid, dead-on reading never fails to heighten the importance of these principles that most twentysomethings should be forced to listen to in toto. Highly recommended for all public libraries. Dale Farris, Groves, TX
Copyright 2001 Reed Business Information, Inc. --This text refers to an out of print or unavailable edition of this title.

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Product Details

• Paperback: 272 pages
• Publisher: Pocket (October 1, 1998)
• Language: English
• ISBN-10: 0671015206
• ISBN-13: 978-0671015206
• Product Dimensions: 8.2 x 5.2 x 0.7 inches
• Shipping Weight: 8.8 ounces (View shipping rates and policies)
• Average Customer Review: 3.9 out of 5 stars See all reviews (823 customer reviews)
• Amazon.com Sales Rank: #1,238 in Books (See Bestsellers in Books)

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Customer Reviews

Most Helpful Customer Reviews

175 of 179 people found the following review helpful:

5.0 out of 5 stars A startling revelation on what it takes to create wealth., November 4, 2003

By A Customer

This review is from: The Millionaire Next Door: The Surprising Secrets of America's Wealthy (Hardcover)

I can certaintly understand the controversy regarding this book. When I first heard of this book, I thought it was some ripoff book and approached this book with ambivalence. So I checked it out from my local library first and was so impressed that not only did I go out and buy my own copy, but also give it as an accessory gift for special occasions and recommend it to everyone I know.

I also recommend "The Millionaire Mind" which is different from this book. That volume allows you to peek inside the minds of millionaires; shows you how the millionaires think.

One caveat of these books is that they are dependent on income. You won't find anything in here on creating cash flow. For that I recommend "Rich Dad Poor Dad" whose ideas on staying debt free are somewhat similiar to what is recommended in Millionaire Next Door, but also provides ideas for creating wealth through additional cash flow. It is a book that should be written in addition, not in place of The Millionaire Next Door.

Also recommend More Wealth Without Risk and Financial Self-Defense which offer actual strategies on creating wealth, reducing expenses and investing.

116 of 117 people found the following review helpful:

5.0 out of 5 stars The way to wealth, January 31, 2004

By A Customer

MAKE NO MISTAKE ABOUT IT...Nobody has ever achieved any level of wealth without exercising some degree of discipline. Discipline to create cash flow and discipline to plug up the leaks on excessive spending.

The Millionaire Next Door shows how average people achieved extraodinary wealth with a few daily disciplines. When most people think of wealthy people most people look at the type of cars they drive, homes they live in, fancy clothes and other materialistic things.

The fact of the matter is, that in many cases, these people have the least amount of wealth. There bankers, brokers, realtors, store clerks, insurance agents are getting wealthy while they slave away in some cases working two jobs in an effort to show a lavish lifestyle.

The Millionaire Next Door shows that you don't need a huge income to become wealthy. Nor do you have to live like a hermit. You can have a great lifestyle in the present while saving for the future...but you have to exercise control.

The Millionaire Next Door was like a jolt of electricity to me and made me aware that I was living way beyond my means with little if anything put away for retirement or even emergencies.

By contrast, I know some people who earn far less than I do, live reasonably well and have also saved a small fortune by being frugal.

Do you really need that bottled water? Eat out every day. Rent too many videos. Have to buy those new fashions? Need to buy a new car just to keep in style? Need to move into that bigger house to keep up with your neighbors?

Here is a tip: increase your spending starting tomorrow by putting at le ast 10% of your gross income away. Invest into a IRA and your 401 (k) plan at work. If you are doing that, great. Increase your spending by increasing the amount of money you put into investments. Make extra principal payments on your mortgage and credit cards. Spend extra money in rental properties...carefully or start a small home based business and then use the profits to enhance your lifestyle.

Besides The Millionaire Next Door, I also recommend The Millionaire Mind, Rich Dad Poor Dad, The Automatic Millionaire, The Truth About Money, Ordinary People Extraordinary Wealth and More Wealth Without Risk.

If you have high credit card debt, I recommend Rich Dad's Guide To Becoming Rich Without Cutting Up Your Credit Cards by Robert Kiyosaki. By the way, Kiyosaki recommends The Millionaire Next Door in his excellent book Rich Dad Poor Dad.

The Millionaire Next Door is a great read, just don't make it your only source of financial information.

Another way to spend money profitably is to spend (invest) in education by buying good quality books like the ones mentioned above.

132 of 134 people found the following review helpful:

5.0 out of 5 stars Sensational!, July 7, 1999

By A Customer

The people givin this book one stars and whining miss the point. You can have a lifestyle while building for the future. Nowhere does it say you have to live like a hermit. Frugality is the key. I'll bet that all of the one stars are also livig paycheck to paycheck and broke (but having a great time) I also recommend Buffetology and More Wealth without Risk.