The general premise of The Millionaire Next Door is that the pop culture concept of a millionaire is quite false and that most actual millionaires live a very simple lifestyle. The authors, Stanley & Danko, did extensive profiling of people whose net worth defined them as millionaires along with those whose salaries and age defined them as likely millionaires and, using this data, created a detailed profile of who exactly a typical millionaire is. From their, extensive interviews with these “typical” millionaires created a much more detailed picture of what it actually means to be a millionaire in today’s society.
Many people who earn high incomes are not rich, the authors warn. Most people with high incomes fail to accumulate any lasting wealth and in return can retire early at the normal age. They live hyper consumer lifestyles, spending their money as fast as they earn it. In order to accumulate wealth, in order to become rich, one must not only earn a lot , but also develop frugal habits of saving and investing what they earn.
I really liked this book, I can’t connect to the part of being a millionaire but to learn about investing and saving before you have money is very crucial. A lot of people live paycheck to paycheck and spend what they get as soon as they get it and this book really shows the consequences of that. I’d say the best target audience is young adults, since everyone is in the same situation with minimal money and needs to save. Everyone wants to be a millionaire, and this book shows how you can get their with different ways and strategies.