The Millionaire Next Door
Library · Personal finance
- Authors: Thomas J. Stanley and William D. Danko
- FinSimLab rating: 4/5
- Reading: Moderate
- Finance level: Beginner
- Published: 1996
A study of the habits of people who build wealth, who often live well below their means.
What it covers
Based on surveys of high net worth US households, the authors describe an unremarkable profile: moderate spending, budgeting and little show. They separate high earners from high accumulators and show the two often differ. The data is from the 1990s, but the behaviour pattern is still recognisable.
What you will learn
- The difference between a high income and high net worth.
- Why visible spending slows wealth building.
- Which habits people who build wealth over a lifetime share.
Who it is for
People who want to understand what separates a good salary from a sound financial position.
Concepts
Net worth, Saving, Mindful spending
What you will not learn
A step-by-step plan: it describes habits from data, it does not give instructions.
Already read a book on this?
- It shares saving part of what you earn with The Richest Man in Babylon. If you have read The Richest Man in Babylon, this one mainly adds real data on how people who build wealth live. The Richest Man in Babylon
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Put it into practice
More personal finance books
- The Richest Man in Babylon
- Your Money or Your Life
- I Will Teach You to Be Rich
- The Total Money Makeover
- Rich Dad Poor Dad
- Die With Zero
Descriptions written by FinSimLab for educational purposes. They do not summarise the books and are not investment advice.