Archive for advice

The Millionaire Next Door by Thomas J. Stanley & William D. Danko

Posted in Book, literature, Reviews, Uncategorized with tags , , , , , , , , , on November 21, 2009 by payjturner

Admittedly, this isn’t normally the kind of book that I would read. (had to read it for a graduate class) But I’m glad that I did. Alot of it is common sense to me but it does drive some points about personal finance home. It gives you detailed information about America’s millionaires, the who, what,  habits,  lifestyle, & how they became wealthy. You’ll be surprised. They’re not the people you think they are. You probably wouldn’t even recognize one if you saw them walking down the street or driving a car.

The books facts are based on over 20 years of research including focus groups and interviews with more than 500 millionaires and surveys completed by 11,000 high net worth and/or high income people. It basically tells you what you need to do if you want to become wealthy  …truly wealthy. Not the kind of wealthy most people think of…you make a large salary then you spend it all. True wealth is building appreciable assets.

I think everyone can take something away from this book but the ones who really need it are the “big hat no cattle” kind of people (people with flashy things & zero net worth). But people like me who just don’t save or invest as much as they should need to read it too. The biggest thing it gave me is hope. I have spent an enormous amount of time worrying about my salary not being enough and not having enough money to retire comfortably. The information in this book helped me realize that you really don’t have to make an outrageous annual salary in order to substantially increase your net worth over time. Common sense tells me that if I reduce my spending, save as much as I can, and invest wisely that I will be in the best possible place I can be. What I realize now is that if I really commit myself the best possible place I can be is much better than I would’ve ever thought possible…maybe not a millionaire but still a good place.