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The Millionaire Next Door: The Surprising Secrets of America's Wealthy Paperback – November 16, 2010
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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 an out of print or unavailable edition of this title.
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.
Top Customer Reviews
The majority acquired their wealth in one generation and followed these factors of wealth accumulation: *Live well below your means. *Spend your time, energy and money efficiently in ways that build wealth. *Believe that financial independence is more important than social status *Their parents didn't help. *Their adult children are economically seW-sufficient. *They know how to pick market opportunities. .They chose the right occupation.
As a group, they all have supreme confidence in their own ability. If you thought ancestry had much to do with it consider this: The highest concen-trations of millionaires by ancestry in order of rank are Russians; Scotts; Hungarians; Latvians; Australians; Egyptians. Self-employment is a major correlate of wealth.
They are frugal and their spouses even more so. Not only are they planners and budgeters, they don't shop where you might think; their two favorite stores are J. C. Penny and Sears. Most answer these questions the right way: -Does your household operate on an annual budget? -Do you know how much your family spends each year for food, clothing, shelter? -Do you have a clear, defined set of daily, weekly, monthly, annual and lifetime goals? -Do you spe'd a lot of time planning your financial future?Read more ›
The book should really be titled "Everything Your Mom Taught You (or Should Have Taught You) is Right." If you follow all the rules laid out in this book, you will never be poor (except for some disaster that you have no control over, but in that case you'd be poor no matter what you did.) The rules are the ones that Americans used to live by before the coming of the 60s and 70s and the "turn on, tune out" generation's destructive, infantile philosophy.
These rules are: 1.) Complete at least high school (a college degree is better, but not necessary. 2.) Marry a hardworking reliable spouse, not a flake, and stay married. (Advice is good for both sexes -- divorce is a huge wealth-killer). 3.) Live below your means, save and invest the left-over money. 4.) Buy good quality stuff, not trendy "stuff" that goes out of style or falls apart after a few years, and keep it for a long time. 5.) Buy used, good quality stuff rather than new, poorly made junk for the same price. 6.) Don't do stuff that harms your health, like substance abuse and promiscuous sex. 7.) Don't buy on credit.Read more ›
The problem begins when people see this book as a recommendation: "most millionaires are frugal, hard-working, well-educated, and diligent investors - so if I will act like that I will be a millionaire". This is simply not true - and for a very simple reason discussed below.
Indeed, most millionaires ARE like that. Indeed, it is good advice to be frugal, hard-working, and well-educated as opposed to the opposite. It is also gratifying to see that sometimes "doing the right thing", the protestant work ethic, and the "nose to the grindstone" attitude sometimes pay off not only in "being a better person", but in concrete monetary success. Apparently good guys DON'T finish last after all.
But the book suffers from a double survivorship bias. "Survivoship bias" is what happens when one only pays attention to those who survive a certain activity, peril, or risk, and makes ungounded conclusions about cause and effect from that. One famous example is Neitzsche's famous saying, "what doesn't kill me makes me stronger". It is based on the survivorship bias that those who survive terrible calamities tend to be stronger than other people. But it doesn't mean the calamity MADE them stronger - it might mean simply that only those who were strong to begin with survived the calamity.
What survivorship bias do we see here? First, it interviews ONLY millionaires.Read more ›
Most Recent Customer Reviews
Eye opening. Wonderful insights into the buying and budgeting habits of millionaires. While reading, I found myself deciding which of my friends and acquaintances were PAWs and... Read morePublished 18 hours ago by Stacie L Newman
This helps you see where you are at in your finances and how you can do better or what you need to focus on.Published 1 day ago by MJ
If you like repetitive, anti-government drivel with occasional undertones of racism and sexism, this book is for you. Read morePublished 1 day ago by Earl Marshall
This booked confirmed my personal experience; that is, living frugally can result in the accumulation of wealth even on a modest income. Read morePublished 2 days ago by Lisa
This was a truly great book when it was originally issued, but that was a long time ago. The data upon with the book was based are now sadly out of date. Read morePublished 3 days ago by Amazon Customer
Well done. This book covers key concepts...avoid keeping up with the Joneses and invest the difference. Highly recommend this book especially young people.Published 4 days ago by CR
A good read for a different view on how giving money to your kids can actually hurt rather than benefit them. Read morePublished 5 days ago by Sarah Nelson