Book Review: "The Millionaire Next Door"

by Miriam Caldwell | More from this Blogger

11 Oct 2006 11:15 AM

One of the best things you can do to help your financial health is to read regularly on the topic. It is a good idea to stay on top of things in the financial world, and a subscription to a magazine about finances can help you do this. However, books often offer a deeper insight specific money matters. One book that is eye opening is "The Millionaire Next Door" by Thomas J Stanley and William D Danko.

I first read this book right after I got married. I am grateful that I found it, because it has helped my husband and I to prevent many common mistakes that many young couples make. It also opened my eyes to the difference between true wealth and having the nicest house, car, and so on. It really can change the way that you look at the way you spend money.

The book is based on a survey that the authors conducted of millionaires. By looking in-depth at the many aspects of lives of these millionaires the authors were able to make several different conclusions concerning the lifestyles of the millionaires, and they pass the information on to you. It is interesting because they look at the net worth of what a person has to conclude how well off he really is. They also discuss seven different factors, which the millionaires have in common, and how this affects the amount of money that they have.

One of the biggest factors is that millionaires live below their means. They do not necessarily make over a hundred thousand dollars a year, but because they have lived below their means, they have had money to save and invest which has built their wealth. Also these millionaires are not caught up in status symbols. They do not have the biggest houses or the fanciest cars, nor do they spend a lot of money on clothes or jewelry. They channel their money into building wealth.

This book is a great read. It is interesting, and it points out the pitfalls that many make as they try to accumulate wealth. It is great to see the examples of those who made good choices and are reaping the benefits now. I highly recommend that you read this book. It will change the way you look at money.

Learn more about Miriam Caldwell

Miriam is a SAHM mom of three children. She has a daughter who is seven, and two sons, four and two. She loves being a parent and spending time with her children.

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