One of the most practical books we recommend on personal finances is The Millionaire Next Door.
This New York Times best seller, written in 1996 by Thomas Stanley, Ph.D. and William Danko, Ph.D., studies the money habits of people who consistently become wealthy.
7 Factors describe those who build substantial wealth:
- They live well below their means
- They allocate their time, energy and money efficiently, in ways conducive to building wealth
- They believe that financial independence is more important than displaying high social status
- Their parents did not provide economic outpatient care
- Their adult children are economically self-sufficient
- They are proficient in targeting market opportunities
- They choose the right occupation
The authors discuss at length the common characteristics of those who are “good with money.”
How Millionaires Invest:
Ben Carlson’s recent review of The Millionaire Next Door sums up the investing habits of millionaires:
“The best way to supercharge your wealth is to own equity. If you do so in a business you own or work at, that certainly helps. The next best thing is to own equity in publicly traded stocks.
The good news is that it’s never been easier to invest in the stock market. When The Millionaire Next Door was originally released, the authors noted that fewer than 25% of households owned stocks or mutual funds. Today, it’s more like 60%. That’s progress.”
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| 7 Attributes of The Millionaire Next Door7 Attributes of The Millionaire Next Door. Posted May 20, 2025 by Ben Carlson. I first read The Millionaire Next Door a year or so into my first job. I didn’t know a thing about what it takes to get wealthy so the book was eye-opening for me as a 20-something trying to figure out my career and finances.awealthofcommonsense.com |
