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The Millionaire Next Door: The Surprising Secrets of America's Wealthy Paperback – November 16, 2010

4.6 4.6 out of 5 stars 15,130 ratings

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The bestselling The Millionaire Next Door identifies seven common traits that show up again and again among those who have accumulated wealth. Most of the truly wealthy in this country don't live in Beverly Hills or on Park Avenue-they live next door. This new edition, the first since 1998, includes a new foreword for the twenty-first century by Dr. Thomas J. Stanley.

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Editorial Reviews

Review

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)

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

About the Author

Thomas J. Stanley is an author, lecturer, and researcher who has studied the affluent since 1973. He lives in Atlanta, Georgia.

William D. Danko is associate professor of marketing in the School of Business, University at Albany, State University of New York.

Product details

  • Publisher ‏ : ‎ Taylor Trade Publishing; Reissue edition (November 16, 2010)
  • Language ‏ : ‎ English
  • Paperback ‏ : ‎ 272 pages
  • ISBN-10 ‏ : ‎ 1589795474
  • ISBN-13 ‏ : ‎ 978-1589795471
  • Reading age ‏ : ‎ 5 years and up
  • Item Weight ‏ : ‎ 2.31 pounds
  • Dimensions ‏ : ‎ 5.88 x 0.79 x 9.06 inches
  • Customer Reviews:
    4.6 4.6 out of 5 stars 15,130 ratings

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Customer reviews

4.6 out of 5 stars
15,130 global ratings

Customers say

Customers find the book very understandable, with good examples and data-backed look at the wealthy. They also appreciate the valuable wisdom and powerful combination of regular saving. However, some find the rest of the book repetitive.

AI-generated from the text of customer reviews

784 customers mention "Content"713 positive71 negative

Customers find the book's content valuable, packed with information, and inspiring. They say it teaches that cash flow is necessary, and that regular saving is powerful.

"Great book, full of wisdom in managing money. I highly recommend to anyone who wants to be wealthy." Read more

"...A Useful Definition of Wealth -- Wealth is much more than how much money you pull in every year and how much your house costs...." Read more

"...is nothing groundbreaking in this book but it does give insight on how to manage money for long term wealth...." Read more

"...This book helped me set financial goals and immediately after reading it, I was able to assess what I really need in my life and cut my next month’s..." Read more

213 customers mention "Readability"158 positive55 negative

Customers find the book very understandable, well written, and illustrative. They also say it provides a simple formula to becoming rich. Readers also say the message is solid and very useful in today's world. They appreciate the data-backed look at what the wealthy look like, and the collection of anecdotes and interesting conclusions about countless Americans.

"This is an excellent, data-backed look at what the wealthy look like in the United States...." Read more

"...The book has a simple equation for where you should be based on age and income...." Read more

"Easy to read book with great information." Read more

"even with an updated forward, very out dated book. hard for my kids to apply it when it constantly using pricing from the 80"s" Read more

106 customers mention "Entertainment value"4 positive102 negative

Customers find the book repetitive, frustrating, and dull at times. They also say the book makes simple concepts incredibly long-winded and incomplete.

"...It does however get repetitive half way through by repeating the number one lesson we can all learn from this book..." Read more

"I liked this book more than i didn't. I felt it was incomplete. I saw nothing about balancing income versus spending." Read more

"...in the few points that are made in this book, but this is not one of the best books I have ever read on investing or even about financial behaviors..." Read more

"...Some chapters are a bit long winded; for example, the chapter on buying a car is probably 2-3 times longer than it needs to be..." Read more

Great book
5 out of 5 stars
Great book
Great book, full of wisdom in managing money. I highly recommend to anyone who wants to be wealthy.
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Top reviews from the United States

Reviewed in the United States on August 1, 2024
Great book, full of wisdom in managing money. I highly recommend to anyone who wants to be wealthy.
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5.0 out of 5 stars Great book
Reviewed in the United States on August 1, 2024
Great book, full of wisdom in managing money. I highly recommend to anyone who wants to be wealthy.
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Reviewed in the United States on August 6, 2024
Good stuff in this book. Highly recommend
Reviewed in the United States on January 26, 2024
This book is very good for those seeking basic knowledge and understanding of building wealth. I will say that there is nothing groundbreaking in this book but it does give insight on how to manage money for long term wealth. This book is very helpful for younger adults looking to understand what it means to save money and not spend on frivolous things that don’t benefit them in the long term. To the older generations this book just reinforces what most of already should know, wealth is built over time and not overnight.
12 people found this helpful
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Reviewed in the United States on January 26, 2009
Ask anyone about the lifestyle of millionaires not just in America but in any country in the world, he / she will most likely tell you about yachts, luxury travels, expensive cars, dream homes, heavy consumption, expensive jewelry etc. Very few people are likely to talk about frugality and a modest lifestyle as the characteristic lifestyle of millionaires. After all who spends all the money on luxuries if not millionaires ? Do you think the answer is millionaires ? Wrong : it is high income generating and / or high debt hyperconsumers. But aren't high income generators also millionaires ? Answer : not most of the time. In this book the authors Thomas J. Stanley and William D. Danko explain with examples that most millionaires are self made ; they are not necessarily inheritors of wealth. In fact inheritors of wealth are usually hyperconsumers who spend it all away and do not end up becoming millionaires like their parents. The number one characteristic of the millionaire lifestyle is frugality ; living below their means and investing the surplus wisely. Many people do not know the difference between income and wealth. High income is good in building wealth if it is not all spent away but some of it is invested. The problem is that this requires delayed gratification which requires self discipline that most high income people don't have. So following years of upper middle class standard of life characterized by hyperspending they end up retiring with no wealth.

The wealthy on the other hand delay luxurious consumption and invest a certain percentage of their incomes into income generating assets. When their accumulated wealth reaches a certain level they purchase luxuries without endangering their wealth. So most of the people you see on yachts, wearing expensive watches and jewelry are high income generators who will most probably end up with no wealth in their older years. The people in the process of becoming millionaires which could take 30 years or even more live in modest neighborhoods, drive ordinary sometimes even second hand cars, dress and in short live modestly in everyway. Some of them may have high incomes but a vast majority of them have learned to get by on a modest income and generate wealth from that average income by saving and investing about 10 % of their income every month for about 30 years or so. It doesn't matter where they invest ; stocks, Treasury Bills etc. Compounding small income streams over 30 years buids enormous wealths.

One very striking thing that the authors mention is how adults receiving financial support from their affluent parents develop weak characters in terms of wealth building ability. They are in fact adult children, because they haven't developed the self discipline to be frugal and build wealth. Their well meaning parents unknowingly make them weaker by supporting them financially. Their children are often adults in their 30's, 40's and sometimes even 50's and surprisingly many of them have careers ; some are professors, doctors, lawyers etc. Their common trait is that they enjoy an upper middle class lifestyle through hyperconsumption financed in part by their own incomes but to a great extent by financial support provided by their wealthy parents who may be in their 80's by now. They think their parents' wealth is their income. In reality their parents are wealthy but they are not. What is even worse is that their children also get accustomed to the upper middle class living standard. But once the financial support and / or inheritance from the grandparents is all consumed away the grand children risk falling into a poor lifestyle. Because nobody other than the grandparents knew how to build wealth. In fact, many of these adult children are aware that they can not generate wealth and therefore worry and are very anxious about their future. In summary, when the affluent provide for " financial outpatient care" by financially supporting their adult children they prevent the development of the character qualities such as frugality in them. So their children and or their grandchildren are often doomed to a poor lifestyle following an irresponsible hyperconsumptive life funded by parental financial help. Although the authors have written these for the USA I would like to add that this is the situation in many countries including the USA. I just didn't know that it was as prevalent as the authors explain.

We can learn a lot from this book / CD but the sad thing is that it is probably difficult to change our lifestyles and habits if it turns out that our present consumption / saving habits are not making us millionaires ; if for example your family's lifestyle is hyperconsumptive and there is no frugality, you may have a hard time after reading this book in changing the habits of all the family members so that everybody will become frugal and thereby increase the chances of you and your family becoming millionaries.
54 people found this helpful
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Reviewed in the United States on July 22, 2024
Easy to read book with great information.
Reviewed in the United States on July 26, 2021
Are some of the illustrations out of date? Yes. Do some of the ideas such as men with long term marriages most likely to be millionaires non PC? Yes. Save instead of spend obvious? Yep. Uncomfortable mirror if you belong to a country club, drive a brand new luxury car, have a Rolex, send your kids to a private prep school and then get derided as a UAW (under accumulator of wealth) repeatedly? Ouch cause the real millionaires quoted make fun of you as all hat no cattle, repeatedly. And not one of those criticisms matter at all because this book is such an eye opener about who becomes wealthy and how. For the most part they don't inherit it, they don't win it, they don't have a secret formula. What they do is avoid living by rich people, live below their means, earn well, and save/invest over a lifetime. The only thing missing is how the millionaires get decent careers or businesses - three things I can help you with. One - every college is a business so they will tell you "follow your dreams" not "4% of our undergrad degrees are biology of which we can only place 30% in biology jobs (what are we to do, fire 70% of the biology department to help undergrads and then tell you the whole truth about our business?)". Two - never work for someone else unless they are teaching you how to become their competitor or skills that will help you open your own business. Three - the business world is littered with closed cupcake stores so don't do what you love; instead do a SWOT analysis, do your due diligence, identify the barriers to entry (better be some!), know your first two years cash flow, find a ready market, don't be late to said market, get your spouse working because that extra revenue stream will buy you time, calculate your exact burn rate on one income and save two years worth, and if at all possible start your business part time while still working. So you can discount the criticism of this book as most negative reviewers haven't read it in full, don't like the political insinuations, are defensive big spenders, or wanted some secret that would make them rich. Here is a simple trick to start spending less - look at everything you do in 10 year cost. Hulu $6 per month/ $72 per year / $720 per 10 years - for me worth it. Specialty coffee $5 per day / $150 per month /$1800 per year /$18000 - that right $18,000 over 10 years - no way. Just set two simple goals - first get in the top quartile of household income, and second save 20% of pretax income. If you are under 35 and do those two things (oh and read/follow this book) you may retire in comfort and be in control of your life because you won't be scampering from one bill to the next, in perpetual fear that you might lose your job, always and forever on the wheel.
66 people found this helpful
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Top reviews from other countries

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Rafael Ladeira
5.0 out of 5 stars Recomendo totalmente a leitura desse livro
Reviewed in Brazil on November 15, 2022
Atualmente comprar um livro com material de qualidade é difícil, esse possui capa dura verdadeira, folhas e impressão de qualidade. Certamente o que mais importa é o conteúdo e ele foi muito bem elaborado, traz muitas sugestões e experiências reais de pessoas bem sucedidas, detalhado o que fazer e não fazer de acordo com o histórico de diversas pessoas. Não é preciso ser ou querer ser um milionário para que esse livro seja de grande valor para você, ele pode te ajudar a ser ter uma vida mais tranquila financeiramente ou apenas te ajudar a ser uma pessoa melhor, o que já valeria a leitura.
Armando Guzmán
5.0 out of 5 stars FRUGAL Y DISCIPLINADO
Reviewed in Mexico on September 23, 2022
Me encantó la manera de demostrar como millonarios no son lo que nos venden en la televisión, de gente despilfarradora y lúcida, sino de gente frugal y con un negocio propio
LFJ
5.0 out of 5 stars Fantastic guide to financial stability
Reviewed in Sweden on September 9, 2023
Yes, read 141 out of 250 pages so far but I am so impressed with the financial advise. Great book. Recommended to everyone with any sort of income.
Anita Henderson
5.0 out of 5 stars Don’t listen to the negative reviews. Definitely Recommend
Reviewed in Canada on March 31, 2021
This book uncovers the false narrative of the typical image of a millionaire and their spending habits. After reading this book as a 22 year old who judged someone’s wealth based on the car they drive and the house they live in, I realized I couldn’t have been farther from the truth. The constant comparison between how PAWs (prodigious accumulators of wealth) and UAWs (Under accumulators of wealth) spend and invest their money made it easy to create connections between how you should and shouldn’t spend your money. As society and social media continue to elevate the already high consumption lifestyle many of us want to live and show off, it is important to realize the consequences of such lifestyle. This book provides the honest and realistic way to become rich and although it’s exactly how you expect it, the book breaks down why and what benefits come without living a high consumption lifestyle. I would have liked to see an updated version as the financial figures are not congruent with the prices or salaries of 2021. With that said, the examples and figures are still easy to understand and relate to today’s day and age.

I have recommended this book to many family members and friends as it has changed my perspective on what wealth is all about.

Remember, the book will provide you with the knowledge to accumulate significant wealth but it is up to you to execute what you have learned.
18 people found this helpful
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Ben Pardo Garcia
5.0 out of 5 stars Most millionaires are actually self made
Reviewed in Spain on November 6, 2022
Frugality, planning and humbleness can make you a millionaire. Exactly the opposite of what we are told.