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The Millionaire Next Door, Surprising Secrets of America's Wealthy (平装)
by Thomas J. Stanley, Ph.D., William Denko, Ph.D.
| Category:
Personal finance, Personal wealth, Success, Self help |
| Market price: ¥ 178.00
MSL price:
¥ 158.00
[ Shop incentives ]
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| Stock:
In Stock |
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MSL rating:
 Good for Gifts |
| MSL Pointer Review:
A personal finance must read to achieve prosperity through frugal lifestyle and improved financial planning. |
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AllReviews |
1 2   | Total 2 pages 16 items |
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The Boston Globe (MSL quote), USA
<2006-12-29 00:00>
A primer for amassing wealth through frugality. |
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San Francisco Business Times (MSL quote), USA
<2006-12-29 00:00>
Offers a valuable message to today's spendthrift baby boomers. |
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Forbes (MSL quote), USA
<2006-12-29 00:00>
The implication of The Millionaire Next Door...is that nearly anybody with a steady job can amass a tidy fortune. |
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J. Brown (MSL quote), USA
<2006-12-29 00:00>
This was one of the first financial planning books I bought, and with each additional financial book I read I can always trace its wisdom to something stated in the Millionaire Next Door. Being frugal and saving isn't always about depriving yourself of the finer things. I bought a 2000 Navigator for more than $30,000 less than I would have bought it new. It still runs like new and has all of the bells and whistles that I like except for the Navigation system. So instead of going to Best Buy and buying one for $1200, I went to eBay and bought the one I wanted for $400. Now that is saving and being frugal but also enjoying life and its finer things. I have plenty of more stories like these after I decided to enjoy life and the finer things without breaking my bank account. Being frugal is simply making better financial decisions. This is what the authors were stressing. With each time I listen to the audio book I get more enlightened. I am well on my way to being the Millionaire Next Door and enjoying life in the process. |
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Jim Lippard (MSL quote), USA
<2006-12-29 00:00>
The Millionaire Next Door reports on the authors' studies of Americans with a net worth of $1 million or more, primarily collected through surveys over the past couple of decades. This isn't really a self-help book, but more of a summary of the distinguishing features of "prodigious accumulators of wealth" (PAWs, those in the top quartile of net worth for their income and age category) and "underaccumulators of wealth" (UAWs, those in the bottom quartile of net worth for their income and age category).
The main lesson of the book is the extent to which annual income is separable from net worth - those in the PAW category may have incomes as low as $50,000/year, but they live below their means, typically investing 15% or more of their annual income and being extremely frugal in their spending. Those in the UAW category, by contrast, may earn extremely large salaries, but tend to spend all of it (and then some), with the result of having low net worth relative to income.
The main beneficiaries of this book are people who are of average or above average income yet are unaware of the basics of accumulating wealth, those who have developed bad habits, and those who want to encourage their children to become financially independent.
The book is somewhat repetitive, its advice won't help turn those of very low incomes into millionaires, and it doesn't directly address the question of whether PAWs are happier than UAWs (though it does argue that PAWs tend to have fewer fears and concerns than UAWs). It is an entertaining read, and contrary to some other reviewers, I enjoyed reading the case studies. |
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J. Coyne (MSL quote), USA
<2006-12-29 00:00>
This is a good book. I would recommend it to anyone who feels that they just aren't doing well despite a good income, or for young people just starting out who are interested in financial advice.
The main point of the book is that high net worth individuals don't always have the material trappings of wealth. In my career I worked for clients worth between 1M-10M and reviewed many of their financial profiles. The findings in this book are, generally, consistent with my experience. These people do not all own fabulous houses, they don't all drive the latest model car and they're probably less fixated on the acquisition of consumer goods than the average American. Of course, the story about the woman who happily sat clipping coupons when her husband told her he'd just given her $8M of stock? Um, sorry, that's just queer. As others have mentioned, the anecdotes in this book can be a little bizarre, serving at times to overstate whatever statistical trend the data and analyses have revealed. That said, I'm glad this book is out there saying what needs to be said: Americans do have a gross misconception about how one gets wealthy and how the wealthy in America live.
I do have one major gripe with the book. The authors at times step beyond discussing "here's what millionaires are like" to "this is the way you should be." That is, I think, a huge leap. The authors assume that anyone reading this book is doing so because their goal is to BE wealthy. It is true that financial independence and securing a comfortable retirement are important, and accumulating net worth is the only way to get there. Yet for some reason the authors do not feel the need to even pay lip service to the idea that some of the patterns of millionaire behavior are (or should be) undesirable. Just as happiness does not derive from the accumulation of consumer goods, neither does it derive from the accumulation of wealth for the sake of wealth alone. Does anyone wonder why these authors didn't collect data on the charitable giving of affluent Americans? The statistics I've seen show that those in higher income groups tend to give less as a proportion of their income than those making less. This is to be admired? Emulated? The authors mention in cursory fashion that receivers of gifts give twice as much to charity as non-receivers. Yet these authors tend to discourage gifting to individuals because gifts breed ongoing dependence and are often consumed rather than properly invested as they would be in the hands of the donor. Perhaps giving breeds waste. But perhaps it also breeds giving. Maybe those with a propensity to provide "economic outpatient care" to their children and grandchildren are willing to risk fostering overconsumption if it means that they are modeling generous behavior that those descendants may emulate. Perhaps they are teaching them that you should never love your money so much that you won't give it away to someone who needs it more. Personally, I don't think I would much enjoy the company of the millionaire painted in this book who (in the words of the author) "is a tightwad... [and] his own favorite charity."
Overall, a great book for people looking for financial guidance. But consider it a book on financial management, not an instruction manual on how to live your life. |
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An American reader (MSL quote), USA
<2006-12-29 00:00>
This is a wonderful book that tells Americans that are determined to live a life of consumerism and throw their old age on the mercy of social security the hard truth that they need to hear. What is so great about this book is that it gives advice that anyone can follow, and through the author's survey of millionaires he shows that just about anyone can build wealth and live financially secure.
The author separates people into two groups - prodigious accumulators of wealth (PAW's) and under accumulators of wealth (UAW's). He notes that the PAW's tend to believe in their own abilities and do not believe that a modest family background holds you back, live below their means and invest an average of 20% of their household income, never purchase on impulse, and realize that you are not what you drive. 90% of the PAW's do not believe that they will ever inherit a dime and are generally right, and their spouses tend to share their frugal habits. The author makes the observation that a household divided in financial orientation is unlikely to accumulate wealth. 80% of the wealth accumulators are college educated, but never attended a private school. They intend to finance the college educations of their children, since they are big believers in the importance of education, and consider it a worthwhile investment. The author compares this to the under-accumulator, who may have a high income but spends his time worrying about his financial future rather than doing anything about it. The under-accumulator believes that wealth means showing off via high-profile possessions versus investment.
This book is a breath of fresh air compared to other wealth-building books I have read that encourage the reader to take big financial risks in entrepreneurial endeavors that they may not fully understand versus taking the simple steps outlined here that can lead to big returns but take time, patience, and most of all a realignment in your attitude toward money. Highly recommended. |
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An American reader (MSL quote), USA
<2006-12-29 00:00>
Stanley and Danko have compiled a list of traits that, though blatantly un-glamorous, usually tend to produce wealthy people. "Millionaire," is a great explanation of how certain people have achieved what most people are attempting to achieve: financial independence. The figures from their studies on the wealthy and ultra-wealthy are reported in a fairly dry manor but describe how slow and steady wins the race and how the materialistic lifestyle of many high-income earners usually prevents them from attaining true wealth though it does afford them a lot of shiny things that impress their neighbors. This book is a great way to pick up on some of the characteristics of millionaires though you shouldn't expect really exciting techniques or a get-rich-quick guide. The main point that differentiates this book over the authors' other books is that many of the 3.5 million millionaires in America may be the nice couple living next door who are inconspicuous with their wealth. In fact, their inconspicuous lifestyle is probably how they became wealthy in the first place. |
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An American reader (MSL quote), USA
<2006-12-29 00:00>
The Millionaire Next Door is a good first book for the budding investor. There are many approaches to gaining wealth, and this book takes the slow, steady, and safest route to financial independence. Frugality is a recurring theme in the book, and simple arithmetic does show the authors' research to be accurate. Even the next generation of high-rolling stock brokers needs seed money, and the Millionaire Next Door really hammers home the need to save.
Another interesting facet of the book is insight into the millionaire mindset. Most people think of millionaires as caviar-eating, Rolls-Royce driving top hats. That may be the case in some situations, but the average millionaire is an entrepreneur that lives below his means. One thing I wanted to learn more about was actual investing. I look at this book as the first step on the road to solvency. Also helpful is the advice on how to handle your kids after you make the big bucks. Think you're helping them with endless cash gifts? Read this book.
As a young, novice investor, personal finance seems to be a mix of knowledge, luck, and logic. I'm sure there is more, but I would definitely recommend the Millionaire Next Door to anyone who has a little money and wants a little more. Financial independence is not so much of a recipe as it is a garden; you need to tend it regularly and wisely for success. And the fruits are not guaranteed even when you do everything right. However, books like these provide a good starting ground into a complicated topic. |
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Stevie Pletko (MSL quote), Canada
<2006-12-29 00:00>
This book, by Dr. Tom Stanley and Dr. Bill Danko, reveals the results of a survey that targeted wealthy people. Stanley and Danko explain:
"The research for [this book] is the most comprehensive ever conducted on who the wealthy are in America--and how they got that way. Much of this research was developed from the most recent survey we conducted [from May 1995 through January 1996] that, in turn, was developed from studies we had conducted over the previous twenty years. These studies included personal and focus group interviews with more than five hundred millionaires and surveys of more than eleven thousand high-net worth and/or high-income respondents."
What the authors discovered from their survey is found in this book. Perhaps most helpful to readers is that they discovered "seven common denominators [or principles used by] those who successfully build wealth." Be aware that, and Stanley and Danko emphasize this, there are no sure principles that one can follow to become wealthy. (In this book, the threshold level of being wealthy is having a net worth of $1 million or more.) However, the principles outlined in this book will guarantee that you are on the right track to becoming wealthy. The authors say this more eloquently:
"If you are willing to make the necessary trade-offs of your time, energy, and consumption habits [then] you can begin building wealth and achieving financial independence. [This book] will start you on this journey."
In this book, the reader studies the seven characteristics or principles of the wealthy. There are over thirty tables to supplement the written text as well as three appendices. Also, this book is quite easy and straightforward to read.
After reading this book, you should be able to answer many questions such as the following nine:
(1) Who are the wealthy?
(2) What is wealth? What is income?
(3) What are three words that profile the affluent?
(4) How do millionaires maintain their affluent status?
(5) How do most millionaires measure their success?
(6) Why are the two authors of this book, who are experts on wealth, not wealthy themselves?
(7) What should you do whatever your level of income?
(8) What is the number one income-consuming category among the affluent?
(9) You can predict if someone is a millionaire by the type of business they are in. True or false?
Finally, I found that this book can be boring and repetitive in parts. My suggestion is to skip over these boring parts. I found that the repetition was useful and even helpful to reinforce critical key concepts.
In conclusion, this book outlines the results of a survey of millionaires. Could the principles found in this survey help you become a millionaire? |
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1 2 | Total 2 pages 16 items |
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