The Millionaire Next Door

The Surprising Secrets of America's Wealthy

by Thomas J. Stanly , Williams D. Danko

Number of pages: 272

Publisher: Taylor Trade Publishing

BBB Library: Personal Success

ISBN: 9781589795471

About the Authors

Thomas J. Stanly : He is an author, lecturer, and researcher who has studied the


Williams D. Danko : He is associate professor and chair of marketing at the University


Editorial Review

The Millionaire Next Door identifies seven common traits that show up again and again among those who have accumulated wealth. You will learn, for example, that millionaires bargain shop for used cars, pay a tiny fraction of their wealth in income tax, raise children who are often unaware of their family’s wealth until they are adults, and, above all, reject the big-spending lifestyles most of us associate with rich people. Most of the truly wealthy in this country don’t live in Beverly Hills or on Park Avenue—they live next door.

Book Reviews

“If you haven't read the book "The Millionaire Next Door," put it on your list. It's one of many self-help books about retirement investing but among the few that might just change your entire mindset about spending.” — Forbes

“The Millionaire Next Door has a substantial amount of good content – more than two hundred pages of non-filler written in a reasonable sized typeface… The material in the book is cohesive and presents a logical and straightforward worldview, meaning you won’t find contradictory statements throughout. The writing is very readable; I’d even go so far as to call it a “quick read,” though the book wasn’t all that short.” —

“Stanley and Danko's book is revealing and helpful, and now you have a framework for evaluating your progress toward becoming the Millionaire Next Door. It's a great journey and terrific destination.” —

“This is THE book to help us understand how real people become millionaires, to debunk the myth that millionaires are either lucky or inherit their wealth, and to find practical advice on how we too can succeed with money.” — Rockstar Finance

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Wisdom to Share

One way we determine whether someone is wealthy or not is based on net worth—"cattle," not "chattel." Net worth is defined as the current value of one's assets minus the liabilities.

A person's income and age are strong determinants of how much that person should be worth. In other words, the higher one's income is, the higher one's net worth is expected to be (assuming one is working and not retired).

If your goal is to become financially secure, you'll likely attain it. But if your motive is to make money to spend money on the good life , you're never gonna make it.

You can't predict if someone is a millionaire by the type of business he's in

Just because you're in a profitable industry does not guarantee that your business will be highly productive. And even if your business is highly productive, you may never become wealthy. Why? Because even if you earn big profits, you may spend even bigger amounts on non-business-related consumer goods and services.

Profits don't automatically translate into affluence or accumulated wealth. A label does not make a varsity player. Nor does an industry label make the business owner wealthy. It takes talent and discipline to generate profits and ultimately wealth.