When I read The Millionaire Next Door several years ago, I had just started working for a large law firm in New York. I vividly recall being amused by the book's description of white collar professionals who were income rich but balance sheet broke. These are people who have high annual incomes but little or oftentimes negative net worths due to over-leveraging themselves with extravagant houses, cars, clothing, accessories and the like. Thankfully this book, as well as a handful of others and PF blogs like MMM, put me on the responsible path of managing my salary and kept me from becoming another highly compensated, yet paycheck-to-paycheck, professional.
Since reading the book, I have seen stories about this phenomenon ad naseam in the media and expected it to be true of my peers at work. However, my expectations have been wrong. As I've gotten to know and befriend my colleagues, who are generally between the ages of 26-35, I have found that they are just as thrifty as I am despite not being "into" (or particularly knowledgeable about) personal finance. Almost all of them save a good percentage (30%+) of their take home incomes on top of fully funding their tax-advantaged retirement plans, wear reasonably-priced clothing and don't overspend on mortgage/rent. They don't blow tons of money on fancy cars, alcohol or going out and they genuinely appear invested in - no pun intended - and confident about their financial futures.
While my colleagues could be lying to me about the rosiness of their financial pictures, I give them the benefit of the doubt that they are not. I find it a heartening and pleasantly surprising observation. I wonder if what I have observed is indicative of a broader shift in mentality for Gen X/Gen Y professionals towards being more responsible about personal finances since the time The Millionaire Next Door was written in 1996.