ComPortOne Book Review
The Millionaire Next Door
The Surprising Secrets of America's Wealthy
Thomas J. Stanley, Ph. D. & William D. Danko, Ph. D.
The Millionaire Next Door is a twenty year study of how people become wealthy. In the process of the study , the authors discovered that many people who live in expensive homes and drive luxury cars are not wealthy. And even more odd, they discovered that many people who have a great deal of wealth do not live in upscale neighborhoods.
Can you spot the millionaire next door? Who are the rich people in our country? What do they do? Where do they shop? What do they drive? How do they invest? Where did their ancestors come from? How did they get rich? Can you ever become one of them? This book answers all your questions. It redefines wealth and teaches ordinary people the secrets to increasing their wealth.
Most of America's wealthy follow a lifestyle conducive to accumulating money. There are seven common factors among those who successfully build wealth. The Seven Factors are:
- Wealth is not the same as income.
- Wealth is seldom achieved through inheritance, advanced degrees or even intelligence.
- Wealth is achieved through hard work, perserverance, planning and self-discipline.
The book's understanding of wealth is akin to "net worth". Net worth is defined as the current value of one's assets less liabilities. They focused on the group having a net worth of $1 million or more. That is approximately 3.5 million of the 100 million households in America [3.5%]. They focused on this level of wealth for this book because they consider it possible to achieve in one generation.
The book contains formulas to determine where you fit on the wealth scale. But don't despair! This book also gives you workable solutions to our debt troubles and encouragement. Given your age and income, you can determine whether you are a PAW, or prodgious accumulator of wealth; or you are at the bottom as a UAW, an under accumulator of wealth; or maybe you are just a AAW, an average accumulator of wealth.
Whatever you are, if you are determined and follow their guidelines, you have a good chance of becoming one of America's wealthy, too.
- They live well below their means.
- They allocate their time, energy and money efficiently, in way conducive to building wealth.
- They believe that financial independence is more important than displaying high social status.
- Their parents did not provide economic outpatient care.
- Their adult children are economically self-sufficient.
- They are proficient in targeting market opportunities.
- They chose the right profession.
Back to ComPortOne Book Reviews
Back to ComPortOne Home Page
Copyright 1996-2001 ComPortOne. All rights reserved.
ComPortOne Home Page