The Millionaire Next Door – Book Review



How to Become a Millionaire (It’s Easier Than You Think)

Do you ever close your eyes and pretend that you’re a millionaire?  C’mon, don’t tell me you’ve never even pretended to be wildly rich.  What do imagine your life would be like?

Perhaps you imagine yourself lounging on the beach of your own private island.  Or traveling the world and golfing on the world’s most exclusive courses.  Or attending red carpet premieres of Hollywood’s latest blockbusters with Mila Kunis on your arm.

That’s how all millionaires live their lives right?

BUZZZZZZZZ…wrong.

The typical millionaire is the guy who lives right next door to you (Ok, maybe not literally…but he’s someone LIKE that guy).

The typical millionaire doesn’t look or act the part at all.  He doesn’t drive a foreign luxury car or wear $5,000 suits.  He’s just an average looking guy living in a middle class neighborhood like yours.

Surprised?  Many people are when they first read The Millionaire Next Door: The Surprising Secrets of the Wealthy.   First published way back in 1996, The Millionaire Next Door is the culmination of over 20 years of research into how people become wealthy.  Millions of copies have been sold and it is one of the most highly recommended personal finance books on the market…click here to grab a copy on sale right now.

The Millionaire Next Door

The authors found that there are 7 common denominators among people who successfully build wealth.  These are the 3 that stand out to me the most:

They live well below their means.  The typical millionaire doesn’t live the luxurious and high-consuming lifestyle you might expect them to. By being frugal and spending less than they earn they are able to save and invest a considerable amount of money which they then put to work for them.

They allocate their time, energy, and money efficiently, in ways conducive to building wealth.  Sure it’s easier to just spend your night sitting on the couch watching television or fooling around on Facebook, but you’ll never get wealthy that way.  If you want to get rich you have to actually take action and do something that will help you achieve your financial goals.

They believe that financial independence is more important than displaying high social status.  There are many people out there that you would assume to be wealthy by looking at their expensive homes, cars, and wardrobe.  But appearances can be deceiving.  Even if they are bringing home a hefty salary, they could be up to their eyeballs in debt and have no actual wealth to speak of.  Meanwhile, they family next door with a ten year old minivan and hand me down clothes could have a million dollars in assets because they didn’t waste their income on flashy purchases.

Of course, this is just a small sample of the knowledge packed into The Millionaire Next Door.  The book does get a little dry at times as the authors discuss their research studies, but the profile they build of the typical millionaire is absolutely fascinating.  You’ll be amazed as you discover how millionaires really live their lives, and you’ll learn how some of the money habits you have now are sabotaging you and keeping you from reaching your financial goals.

I strongly recommend The Millionaire Next Door to anyone who wants to improve their financial situation and start building true wealth.  You can grab a copy right now or download it right to your kindle for less than ten bucks at Amazon.

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Mike is a freelance writer and blogger who specializes in finance and parenting topics. He is a dedicated husband and father of three who is obsessed with creating multiple streams of income and building wealth so he can achieve true financial freedom for his family. Like what you're reading? Subscribe to our free RSS feed and follow us on Twitter.

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Comments

  1. obsessed – love that word in your description, that about describes me and it can be both good and bad.

    I read the book many years ago and I loved how different the message was from how society views the wealthy. You live in an expensive house, drive an expensive car, whoot whoot your wealthy. This book shows how far from the truth that is

    Rob

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