• Skip to content
  • Skip to primary sidebar

Right Attitudes

Ideas for Impact

Surprising Secrets of America’s Wealthy // Book Summary of ‘The Millionaire Next Door’

February 12, 2016 By Nagesh Belludi Leave a Comment

'The Millionaire Next Door' by Thomas Stanley, William Danko (ISBN 1567315682) The Millionaire Next Door summarizes anthropological research from the ’90s on the attributes of unassuming wealthy Americans. The authors, marketing professors Thomas Stanley and William Danko, offer unique insights into millionaires’ lifestyles and their buying habits. They explain that, in contrast to today’s earn-and-consume culture, the many ordinary folks who accumulate wealth live modestly and prize frugality.

When first published in 1996, The Millionaire Next Door generated widespread enthusiasm for its core message: that anybody could become rich by living below their means, efficiently allocating funds in ways that build wealth, and ignoring conspicuous consumption. Consequently, the book sold millions of copies and stayed on the New York Times bestseller list for three years.

A bulk of The Millionaire Next Door focuses on rejecting the stereotypical view of the wealthy; the authors write, “Most people have it all wrong about wealth in America. Wealth is not the same as income. If you make a good income each year and spend it all, you are not getting wealthier. You are just living high. Wealth is what you accumulate, not what you spend.”

The authors discuss the fancy trappings of wealth and the high cost of maintaining social status. They explain that wealthy individuals prioritize financial independence over a high social status. Further, they did not receive sizable financial support from parents, and raise their own children to be economically self-sufficient adults.

The Millionaire Next Door is a definitive example of books that present simple concepts by reiterating them ad nauseam with an overabundance of statistics, tables, charts, and anecdotes to attain a respectable book length. For instance, a tedious 31-page chapter discusses how the wealthy purchase cars and includes statistics for average price-per-pound of popular cars.

Recommendation: Skim. The Millionaire Next Door defends the timeless values of thrift, disciplined spending, and prudent accumulation of wealth. However, the book overemphasizes penny-pinching and the merits of hoarding money. The book feels dated (it was first published in 1996) and engages the reader in crude generalizations and oversimplifications.

Wondering what to read next?

  1. That Extra Salary You Can Negotiate Ain’t Gonna Make You Happy
  2. Never Enough on the Hedonic Treadmill
  3. Lessons from Secret Millionaires: The Great Compounding Machine That’s Time
  4. Is Dave Ramsey Wrong? Pay Off Your Mortgage as Quickly as You Can?
  5. Wealth and Status Are False Gods

Filed Under: Living the Good Life, Personal Finance Tagged With: Materialism, Money, Personal Finance, Simple Living

Reader Interactions

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Primary Sidebar

About: Nagesh Belludi [hire] is a St. Petersburg, Florida-based freethinker, investor, and leadership coach. He specializes in helping executives and companies ensure that the overall quality of their decision-making benefits isn’t compromised by a lack of a big-picture understanding.

Get Updates

Signup for emails

Subscribe via RSS

Contact Nagesh Belludi

Explore

Anxiety Attitudes Balance Biases Books Coaching Conflict Conversations Creativity Critical Thinking Decision-Making Discipline Emotions Entrepreneurs Etiquette Feedback Getting Along Getting Things Done Goals Great Manager Leadership Leadership Lessons Likeability Mental Models Mentoring Mindfulness Motivation Networking Parables Performance Management Persuasion Philosophy Problem Solving Procrastination Relationships Simple Living Skills for Success Social Skills Stress Thinking Tools Thought Process Time Management Winning on the Job Wisdom Worry

RECOMMENDED BOOK:
When Things Fall Apart

When Things Fall Apart: Pema Chödrön

Buddhist nun Pema Chodron's treasury of wisdom for overcoming life's pain and difficulties, and ways for creating effective social action.

Categories

  • Announcements
  • Belief and Spirituality
  • Business Stories
  • Career Development
  • Effective Communication
  • Great Personalities
  • Health and Well-being
  • Ideas and Insights
  • Inspirational Quotations
  • Leadership
  • Leadership Reading
  • Leading Teams
  • Living the Good Life
  • Managing Business Functions
  • Managing People
  • MBA in a Nutshell
  • Mental Models
  • News Analysis
  • Personal Finance
  • Podcasts
  • Project Management
  • Proverbs & Maxims
  • Sharpening Your Skills
  • The Great Innovators

Recently,

  • Deliver The Punchline First
  • The Tyranny of Best Practices
  • Inspirational Quotations #944
  • What Most People Get Wrong About Focus
  • Get Good At Things By Being Bad First
  • Inspirational Quotations #943
  • Learning from Bad Managers

Unless otherwise stated in the individual document, the works above are © Nagesh Belludi under a Creative Commons BY-NC-ND license. You may quote, copy and share them freely, as long as you link back to RightAttitudes.com, don't make money with them, and don't modify the content. Enjoy!