What do most millionaires have in common, and how do you become one of them? To answer these questions, authors Thomas J. Stanley and William D. Danko interviewed numerous millionaires in the U.S. in a study lasting several years, and they came up with some surprising findings, which they published in their world bestseller “The Millionaire Right Next Door.”
According to the study, most millionaires live inconspicuously and modestly in our neighborhood – they drive used mid-range cars, don’t wear fancy clothes, send their children to public schools, and don’t attach any importance to other luxury goods and status symbols.
On the other hand, those people we commonly think of as millionaires – because they live in expensive neighborhoods, drive brand-new luxury cars, live lavish lifestyles, and spark them in their children – have extremely high incomes but usually spend them as fast as they earn them.
While real millionaires do not need to prove to the world how rich they are and instead increase their wealth through diligence, frugality, disciplined financial planning, and wise investments, those who pretend to be millionaires have often taken on heavy debt to finance their extravagant lifestyles.
The authors support their arguments with numerous wide-ranging and exciting case studies. They illustrate them with entertaining juxtapositions between real and fictional millionaires and high earners, revealing insights into their wealth-creating or wealth-destroying habits.
The book is from 1996, and even though the methods of making and spending money have changed somewhat in the Internet age, the book’s basic lessons remain timeless and valuable.
A recommendation for all those who want to build wealth long-term and achieve financial security and independence.
🎧 Suitable as an audiobook: yes.
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