The Millionaire Next Door just recently released a new edition, and I was sent a review copy. Instead of just giving you an overview of the book I want to take out the specific themes that we all need to be reminded of.
If you want a comprehensive review take a look at these:
- Trent at the Simple Dollar – The Millionaire Next Door
- Get Rich Slowly – The Millionaire Next Door
- Yakezie.com (newest edition review) – The Millionaire Next Door
#1 Not All Millionaires Act Wealthy
The book goes into a ton of statistics. A few really interesting ones:
- Most millionaire’s surveyed don’t drive nice cars. The most common car driven by a millionaire is a Ford.
- 80% of millionaire’s are first generation rich (meaning they didn’t inherit their wealth)
They believe that financial freedom in terms of having more choices is more important than a higher social status.
#2 Not All High Income Earners are Millionaires
I know from experience that earning good money doesn’t mean you are on your way to a million. Specifically a lot of evidence in the book (as well as interviews I have done personally) show that millionaire’s are excellent with personal finance.
They understand that you cannot spend more than you make. While that is an easy rule that most of us know, many don’t follow it. Whether it’s for the car breaking or to go on vacation irresponsibility with your personal finance will never make you wealthy no matter how much money you make.
Sometimes when I see a really nice house or a nice car I step back and ask, I wonder how much debt they might be in? Things look so nice on the surface but you never know what the truth is.
Many high income earners are just like low income earners in debt, trying to figure out personal finances before it’s too late.
To Buy the Book?
I would highly recommend the book for someone who, like me, loves data. My husband thinks I am crazy because when you look through the book all you see are charts and graphs and percentages.
Just as Trent from the Simple Dollar explains in his review, this book has an age bias. It’s calculations are not meant for a younger generation who hasn’t been earning at their maximum potential for awhile. So if you are younger disregard some of the calculations for what your net worth should be.
If you are really interested in the facts and data of a typical millionaire then buy this book. If you are looking for inspiration about becoming a millionaire and what traits made them successful I would recommend The Millionaire Mind by the same author.