Episode 53 - Review and Summary of The Millionaire Next Door by Thomas J Stanley and William Danko

Booked Morning Podcast

When we think of millionaires, we typically think of those we see on TV or instafamous driving nice cars, Hollywood Hill mansions, flashing wads of cash and blowing their money on parties. Last week we talked about the book about Billionaires, I know that most of us will not be able to achieve that. So I wanted to do a book about millionaires, how that can be realistically achieved. What we may not realize is that many of today's millionaires living below their means, save and budget their income and spend wisely. They main concept of The Millionaire Next Door book is that our societies concept of a millionaire is based on false assumptions and that most actual millionaires live a very simple lifestyle. Most of us, when we expect to get a tax refund, get a nice commission or bonus check, we are already planning what to do with it before we even receive it. The authors suggest, sticking to some basic money habits and we too can be on our way to becoming a millionaire. The authors Thomas and William were obsessed with studying the wealthy, or as they call them “affluent”. And what they found was 7 key traits of most of the millionaires they studied. Allow me to leave you with my final thoughts. We need to realize that our dream of accumulating wealth is not a pipe dream reserved for a few, like most of us may think. 80% of the millionaire households are ordinary people who have accumulated their wealth over one generation. The lessons in this book are quite straight forward but a great reminder to us all. We need to manage your finances responsibly, save more and spend less and not take on too much debt that we cannot afford. And being consistent about making smart investments as early as possible to take advantage of compound interest. We all need to find our own balance between denying our selves of what we need an want and over consumption take control of our finances today.