Happy Birthday to the Millionaire Next Door! I and My Net Worth Thank You!!!

Dr. Thomas Stanley recently announced that this fall is the 15th anniversary of the publication of The Millionaire Next Door. I got one of the first copies, read it (a couple times), loved it, and applied it to my life. Since then, my net worth has skyrocketed and I've benefitted tremendously by the findings/advice. So thank you, Dr. Stanley. You made a HUGE difference in my financial life.

Furthermore, if you've benefitted from reading Free Money Finance at all, you also have the book to thank. Much of my thinking and what I do financially comes from it.

For those of you who do not know, the heart of the book is the seven common denominators among those who successfully build wealth. They are:

1. They live well below their means.

2. They allocate their time, energy, and money efficiently, in ways conducive to building wealth.

3. They believe that financial independence is more important than displaying high social status.

4. Their parents did not provide economic outpatient care.

5. Their adult children are economically self-sufficient.

6. They are proficient in targeting market opportunities.

7. They chose the right occupation.

Let me summarize some of these and how they have impacted my life and writing:

• Millionaires work to make their gap as large as possible. I have done this as well.


• It's noteworthy that he lists living below your means as #1 and I have named it my best piece of financial advice.


• I have taken steps that are conducive to building wealth. In particular, I save as much as I can for as long as I can. And I invest it in index funds.


• I don't remember a huge emphasis on making a high income in the book. In fact, that was much of his point -- that you can become wealthy without having a high income. I certainly believe this is true, but I lean more towards having my cake and eating it too. Why not have a high income AND control your spending? That way you can really super-charge your savings/investing, which will drive your net worth to great heights. Oh, and it will allow you plenty left over to give as well.

Anyway, of any single book that's helped me financially, this is it. That's why it's #1 on my list of the best personal finance books. So again I say thank you to Dr. Stanley!

Any of you been influenced by this book? Or perhaps there's another that's done a lot for you financially? What is it?

Comments

[T]

I picked up this book about 7 years ago. It was important to me, because it was at the time when I was entering the workforce after college and the temptaion was there to enjoy my newfound earnings. This book really put into perspective a healther realtionship with money, and I have lived it ever since. For me, it was the single biggest influence in my personal financial life. Everything since then has merely been additive.

Congrats Dr. Stanley.

T

[Old Limey]

I have never read the book, which sounds great, but better late than never, at 77, I just bought an "As New" hardback copy of the 1st. edition for $2.97 on Amazon.com. I can attest to the truth of all 7 common denominators since my wife and I got off the boat from the UK with $400 between us and have never needed or received any monetary assistance from back home. I must add however that 1956 was a very good year to get off the boat, and that we were both very fortunate to have been born at a time that has worked well for us. I am a firm believer that some of the major events in your life are in the hands of fate and not your own.

[Mike Hunt]

I read the book last year for the first time- actually got it free and read it via pdf but I'd have gladly paid for it.

I found the factors in the book to be very accurate.

I believe that nearly everybody with moderate earning power can become a millionaire if they just apply these habits and let enough time go by.

-Mike

[Rick Franics]

>Any of you been influenced by this book? Or perhaps there's >another that's done a lot for you financially? What is it?

The Millionaire Next Door is one of my favorites- I should re-read it as it has been several years. Another great book is:

A Random Walk Down Wall Street: The Time-Tested Strategy for Successful Investing by Burton G. Malkiel if you think you can beat the market or that someone else can you should read this book to find out just how hard it is.

-Rick Francis

[billyjobob]

I read the Millionaire Next Door several years ago. It was a great book and I liked it. However,the book that really got me started on saving and investing was one my father gave me. It was from the early 80's. The Power of Money Dynamics by Venita VanCaspel. One of the neatest things I learned from that book was the "Rule of 72". .....to find out how long it would take to turn one dollar into two. Divide 72 by the interest rate you get and thats how many years it takes to double your money. It really got me interested in compounding and saving.

[Old Limey]

While I was on Amazon yesterday buying the book, just out of interest I started reading the reviews from other customers that only gave it one star. That group of people certainly don't read FMF. Their theme was to look down on people like us and say things like "You only go around once, life's too short to live like a scrooge - live for the present and get the most out of it! People with that mindsight could be some of the people I see holding up cardboard signs at freeway exits, begging for money, and those sitting outside of stores asking if you have any spare change.

[FMF]

Old Limey --

That comment made me smile. :-)

[betsy]

I read this book in middle age, when we had followed the same financial style and were beginning to accumulate a surplus. I saw no point in escalating what already was a comfortable life style, and this book "gave me permission" to do so. I appreciated his subtlety about finding higher cost products which are worth it, and that quest has been interesting. I have a tag on my blog, Luxuries which are worth it, and that's definitely Stanley speaking!