The Millionaire Next Door was an enlightening look at the true lifestyle of many millionaires. Some of the common characteristics of the millionaires they studied:
– Millionaires live well below their means and live a life of frugality. They pay more for quality than image.
– They spend their time and money efficiently in manners that enable them to build more wealth. They budget and plan investments.
– They place financial independence above high social status. (Most purchase used vehicle, the most common being a Ford F-150 because of its cost-to-weight ratio).
– Their parents didn’t provide much financial support, or “economic outpatient care” (EOC) as coined by the authors. Those who received regular and generous cash gifts from their parents tended to squander it. 80% of the millionaires they interviewed were first-generation wealthy.
– Their children are economically self-sufficient.
– They tend to proficiently target marketing opportunities, finding ways to market to other wealthy individuals.
– Choice of occupation: Many millionaires are self-employed and work in “dull-normal” industries (cabinet-makers, dentists, shoe sales, etc.)
This book helped to dispel the belief that millionaires were generally born to wealthy families and live a lavish lives of luxury. In truth, many successful millionaires live in a frugal and sensible manner that can, for the most part, be modeled by anyone.
Great book. I like the fact that it dispels the myth that the American Dream is dead. It’s more about delaying gratification and working smart, plus investing in things you completely understand. There are many ways to be “successful”