The Millionaire Next Door is an excellent book that would provide you with the insight that millionaires are not born millionaires but they adhere to certain strategies that makes them what they are today.
But you might question me that what part does it play in a book about personal finance or does it have anything to do with personal finance? Most of us believe or have this idea that millionaires are people, who have inherited property or got famous, but actually most of the millionaires whom we see or come millionaire university across are people who are self made and with perfect financial planning they have earned that position more than anything else. The Millionaire Next Door tells us that these self made millionaires are people who are not only frugal but have wise head on their shoulders and these millionaires can not be distinguished from the crowd and they can be anyone.
The Millionaire Next Door tells us that the pop culture of a millionaire is a misconception because most of these people have a simple lifestyle. Both Danko and Stanley of The Millionaire Next Door did an extensive and detailed study of people who are millionaires on the basis of their net worth along with people who are likely to be millionaires on the basis of their salaries and age and did a comparative study on the basis of the data gathered by them to create a typical profile of a millionaire. They also interviewed the so called typical millionaires to get a much more detailed picture to covey the readers of this book that where do millionaire’s stand in today’s society.
The Millionaire Next Door is written by authors Thomas Stanley and William Danko and it was published in the mid 90’s. If you go through the book, which was written a decade ago, you will realize that it is much more relevant in the present context today. The Millionaire Next Door deals with subtleties of financial planning and it is ideal for almost everyone but especially for the young generation.
In The Millionaire Next Door, both the authors segregate the traits of millionaires and classify them in seven different factors, which can be found in the pages 3 and 4.
1. The millionaires live a pretty simple life that is below their means.
2. The millionaires find effective ways to build wealth by allocating their energy, time and money efficiently.
3. Millionaires are firm believers of financial independence rather than portraying high social lifestyle.
4. These self made millionaires never got any economic cushion from their parents.
5. The adult children of these millionaires are self-sufficient financially.
6. Millionaires have the eye to tap or cash in any market opportunity that is there for the taking.
7. Millionaires never take hasty decisions in choosing their occupation.