Lessons from the Millionaire Next Door
The classic personal finance book The Millionaire Next Door offers some convincing insights that reach both the head and heart…
Income ≠ Wealth
While most millionaires earn a little more than average, their income is not the driving factor of their wealth. According to The Millionaire Next Door authors Thomas Stanley and William Danko, it’s the prioritization of living below their means instead of flashy spending that leads to their success.
About two-thirds of the millionaires surveyed for the book say they have set clear short-term and longer-term goals. And of those who didn’t, most had already reached financial independence.
They’re invested in their investments
Millionaires put meaningful time and energy into how they save. They care about where their money goes, and are an active partner in researching opportunities when they have the help of an expert like Helmstar.
Not house poor
90% of those surveyed for The Millionaire Next Door live in a home valued under $1 million – and most of the millionaire’s home values are well under that. Instead, they keep their money working for them in the form of investments.
Their kids are self-sufficient
Few millionaires support their kids into adulthood. Instead, they instill their values of common-sense frugality and hard work and set them free to build a life of their own.
Patience is a virtue
Most millionaires and multimillionaires didn’t get there overnight. They worked hard, they saved and they used the power of compound interest and investments to build meaningful wealth.
Values over money
The biggest lesson from The Millionaire Next Door is that millionaires view money as a tool to live a more fulfilling life — not a goal in and of its own. They understand that money needs to be shaped, focused and used to reflect their personal values, not the other way around.