Thomas Stanley and William Danko wrote this book, “The Millionaire Next Door”, back in the mid 1990's. That is over a decade ago. But, the book is even more relevant today than back in the 90's. This is one financial planning and financial perspective book that should be read by everyone especially the up and coming generation.
Our society is a society of consumers and consumption. There is definitely a misconception on wealth and how wealth is accumulated in America. Money is not the most important aspect of life. Wasting money on stuff that people perceive that millionaires have should be avoided. Extending your credit or getting loans on stuff (e.g. cars, clothes, etc.) will make you poor and broke. When you wisely handle money, you positively impact the quality of your life.
There are many key statistics and indicators that this book brings up to move you in the direction of being wealthy (and away from being broke). The key habit that this book has done for me is that I hesitate and think first before spending on stuff. That hesitancy clears your mind and removes the emotion of having that stuff especially cars. Then, you can see if you truly need that stuff. That makes sense (and cents).
The perception of millionaires is that they drive Mercedes-Benz, Rolls Royce, etc. The reality of millionaires is that they drive efficient and economical cars that are usually bought pre-owned (aka a used car). There is an interesting and even funny story in the book about a multi-millionaire being given a gift of a Rolls Royce. He did not accept the Rolls Royce even though it was given as a gift because it cost a lot just to maintain and keep that Rolls Royce. There is more to owning a car than just paying off the car. You have to consider maintenance cost, gas cost, insurance cost, etc. That is something anyone can overlook. That is an interesting perspective that this book discusses.
In addition, you do not know who is actually a millionaire. Some people can have a big hat with no cattle (as they would say in Texas). Usually, a millionaire has a smaller hat with a lot of cattle. The millionaire can be someone next door to you who does not look like a millionaire. They know how to accumulate wealth and wisely use the wealth they have.
This is a good financial planning book to give you the truth and the myth about millionaires.
