The Millionaire Next Door Summary

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THE MILLIONAIRE NEXT DOOR: THE SURPRISING SECRETS OF AMERICA'S (Summary of the Book) The Millionaire Next Door: The Surprising Secrets of America's Wealthy is a book written in 1996 by Thomas J. Stanley and William D. Danko. In this book, these two authors did research in the profiles of some millionaires (millionaires = people with a net worth more than 1million) Their investigation on how people get wealthy led them to some curious discoveries. They found out that most of the people who live in upscale neighborhoods and drive expensive cars do not have extreme wealth, and those who truly have such wealth, don’t live in those places. This book brings insights on not only what a person can do to become wealthy but also on how wealth is not…show more content…
Also, the authors reflect on how spouses can impact someone’s wealthy. Often, the spouses of millionaires are more frugal than their partners. It is very difficult to become wealthy in one generation if someone is married to people who are wasteful. Some people cannot accumulate wealth during their lives because they support their lavish lifestyles. The authors advise people to never buy a home that requires a mortgage that is more than twice of your total annual income. Chapter 3: Time, Energy, and Money This chapter talks about Efficiency has been one of the most important mechanisms of wealth abundance. Our wealthy is dependent on how we distribute our time, energy, and money so that it benefits their net worth. Planning and controlling are two keys factors when someone is trying to accumulate wealth. Wealthy people take time when planning their budget. But those who are not wealthy have no control over their consumption. Chapter 4: You Aren't What You Drive In this chapter, the authors explain that most of the wealthy people don’t spend much money in buying cars. They realize that very expensive car might alienate their workers. They might get the feeling that their boss is exploiting them. The authors show that about 81% of millionaires purchase their own vehicles, but only 23.5% of this group own a new
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