MAKE NO MISTAKE ABOUT IT...Nobody has ever achieved any level of wealth without exercising some degree of discipline. Discipline to create cash flow and discipline to plug up the leaks on excessive spending.The Millionaire Next Door shows how average people achieved extraodinary wealth with a few daily disciplines. When most people think of wealthy people most people look at the type of cars they drive, homes they live in, fancy clothes and other materialistic things.
The fact of the matter is, that in many cases, these people have the least amount of wealth. There bankers, brokers, realtors, store clerks, insurance agents are getting wealthy while they slave away in some cases working two jobs in an effort to show a lavish lifestyle.
The Millionaire Next Door shows that you don't need a huge income to become wealthy. Nor do you have to live like a hermit. You can have a great lifestyle in the present while saving for the future...but you have to exercise control.
The Millionaire Next Door was like a jolt of electricity to me and made me aware that I was living way beyond my means with little if anything put away for retirement or even emergencies.
By contrast, I know some people who earn far less than I do, live reasonably well and have also saved a small fortune by being frugal.
Do you really need that bottled water? Eat out every day. Rent too many videos. Have to buy those new fashions? Need to buy a new car just to keep in style? Need to move into that bigger house to keep up with your neighbors?
Here is a tip: increase your spending starting tomorrow by putting at le ast 10% of your gross income away. Invest into a IRA and your 401 (k) plan at work. If you are doing that, great. Increase your spending by increasing the amount of money you put into investments. Make extra principal payments on your mortgage and credit cards. Spend extra money in rental properties...carefully or start a small home based business and then use the profits to enhance your lifestyle.
Besides The Millionaire Next Door, I also recommend The Millionaire Mind, Rich Dad Poor Dad, The Automatic Millionaire, The Truth About Money, Ordinary People Extraordinary Wealth and More Wealth Without Risk.
If you have high credit card debt, I recommend Rich Dad's Guide To Becoming Rich Without Cutting Up Your Credit Cards by Robert Kiyosaki. By the way, Kiyosaki recommends The Millionaire Next Door in his excellent book Rich Dad Poor Dad.
The Millionaire Next Door is a great read, just don't make it your only source of financial information.
Another way to spend money profitably is to spend (invest) in education by buying good quality books like the ones mentioned above.
Fans of 1,000 page frivilous financial books written by magazine authors or social science books written by "Nixonites" will probably not appreciate this great work by Stanley and Danko. On the other hand, people who want to learn how to become wealthy, financially free and possibly even a millionaire on the other hand, will enjoy this book.
Saying that just cutting back is all this book is about is like saying just exercise and diet and don't read any exercise or nutrition books.
The Millionaire Next Door is an excellent book. Obviously it bothers some people and that is great. I always go with the guys that run with the ball, people like Stanley and Danko.
