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The Millionaire Next Door: The Surprising Secrets of America's Wealthy Paperback – November 16, 2010
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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 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
Great book with solid and usable financial guidance. I read finance and personal development books almost exclusively. Read morePublished 11 hours ago by Jtbone34
This book is filled with data and examples. Not a fast read by any stretch. It opens your mind when it comes to profession and consumption. Read morePublished 1 day ago by nicholas rodriguez
Not much to add to previous comments. It's a great book and yes, there is no surefire way to become a millionaire but heck, society is fighting an uphill battle these days with... Read morePublished 4 days ago by steve
I found this book tedious and boring. In fact, I haven't finished it - only about half-way though. It's lost somewhere on my desk...Published 5 days ago by JWall00
Wonderful book worth many great pointers and guides to being more financially responsible. I didn't fancy the elaborate dialogue regarding the children of the wealthy and how they... Read morePublished 7 days ago by Amazon Customer
I'm in professional school and looking for advice on how to live happy yet still have wealth. This book shifted my priorities it's a must read for those in school or those looks my... Read morePublished 9 days ago by Amazon Customer
This was a great book, I wish I would have read total money make over first by Dave Ramsey. I gave. A copy to all my kidsPublished 10 days ago