Author Topic: The Millionaire Next Door, anyone?  (Read 84207 times)

Drew0311

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Re: The Millionaire Next Door, anyone?
« Reply #100 on: February 07, 2017, 07:45:08 PM »
This is a classic...must read!

YoungGranny

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Re: The Millionaire Next Door, anyone?
« Reply #101 on: March 15, 2017, 12:36:45 PM »
About half-way through this right now and since it's been it's been over 20 years since this book has been published a lot of these details/facts/case studies have made it into my realm of knowledge so I haven't found the book to be life changing. Then again that's likely the case for most mustachians. I do think it would be interesting to have some of the data refreshed to see how it's changed over time.

 On the brightside I've mentioned this book to a few friends and they seemed interested in reading it. Revealing the Million dollar "secret" to non-mustachians is always worth it and I think this is a good book to get people interested in a more frugal life.

YoungGranny

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Re: The Millionaire Next Door, anyone?
« Reply #102 on: March 22, 2017, 06:51:13 AM »
About half-way through this right now and since it's been it's been over 20 years since this book has been published a lot of these details/facts/case studies have made it into my realm of knowledge so I haven't found the book to be life changing. Then again that's likely the case for most mustachians. I do think it would be interesting to have some of the data refreshed to see how it's changed over time.

 On the brightside I've mentioned this book to a few friends and they seemed interested in reading it. Revealing the Million dollar "secret" to non-mustachians is always worth it and I think this is a good book to get people interested in a more frugal life.

Finished this book. I think one of the big take-aways is that people in high income professions have an idea of what their image *should* be and so they spend loads of money to live up to the standard they created. It seems far more important to define who you are and what type of life YOU want instead of living a certain way because society tells you to. I truly feel this a lot - we cut cable over 2 years ago and so I'm never tempted to buy random things because they just don't come into my environment. I'm not tempted to replace my 4 year old vehicle because I never put myself in a position to be sold a new vehicle. While this book never stated that specifically since it just presented case studies I think it's easy to see that if you think outside the box, and stop giving a shit what everyone else thinks it's not that hard to accrue wealth. Even in lower paying jobs, if you live within your means and PLAN it's very easy to get ahead.

 I saw a lot of complaints on Good Reads about this book and mostly it was people complaining that this author was delusional and didn't want people to have nice things. One person was even like "It makes me happy to buy a $1,000 watch so why shouldn't I?" and that's a decent point. If that's what TRULY makes you happy go for it but then don't complain when you have $0 savings. Some people don't care about having savings or retiring early/ever and that's perfectly fine but make sure to define your goals so you're not upset.

So those are my final thoughts on this book. Decent read but pretty surface level stuff, nothing new for most mustachians but interesting to see how spendypants live.

Mezzie

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Re: The Millionaire Next Door, anyone?
« Reply #103 on: March 22, 2017, 07:10:16 AM »
I read this several months ago, and, like others said, there wasn't much in it new to me at this point. I did enjoy the section on economic outpatient care as it confirmed some of my own thoughts. I added it to the list of books I recommend to my high school students; for them, I think quite a lot would be eye-opening.

Acastus

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Re: The Millionaire Next Door, anyone?
« Reply #104 on: June 05, 2017, 11:26:02 AM »
I read this about 10 years ago, and it was pretty educational. It is a short read, especially since the back half of the book is just kind of a rehash with different example stories. There are plenty of millionaires out there, about 5% of households, and most of them are just regular Joes and Jills like us. Most of them are mid level, or a little higher, workers with skills. Many own a small business such as plumbers or accountants. Most hit the million mark in their early 50's.  It all sounds very doable.

I knew this book described someone like me, and engineer. I had set a course for ~ $2 million about 10 years earlier, and this book was confirmation that I could reach my target some day. Now, I don't think I will need quite as much, so when to FIRE, not whether, is my question of the day.

cchrissyy

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Re: The Millionaire Next Door, anyone?
« Reply #105 on: June 05, 2017, 11:51:29 AM »
I read it in the 90s when it came out, and it definitely shaped my perspective. I grew up in exactly that kind of household and have always had frugal MND, MMM , saving, index funds, LBYM, etc ideas. So this book was one piece of that picture and I liked it when I read it as a teen. I read my parents' copy back then, and because they keep everything, I read that same hardback copy again just this year!

But this time , honestly, I found it a bit silly. Some of that is just how dated it was by being written pre-internet, and the career advice that comes with that. Sorry I don't have the book handy to look up real quotes.  I rolled my eyes most about the sexism. I didn't notice it on 1st reading but OMG this time through.  Over and over he talks about "the millionaire's wife spends wisely" or "the millionaire's wife doesn't demand expensive vacations like the neighbor's wife does".  I don't recall any example where the millionaire next door was a woman, single or married. The examples were always the man's perspective. Of course many women are mentioned but they were always a supporting character. Women could be the MND's wife or daughter, but not the MND herself.


(edit to add - as you can probably guess from the above, no MND is LGBT or divorced either)
« Last Edit: June 05, 2017, 12:11:21 PM by cchrissyy »

Nightwatchman9270

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Re: The Millionaire Next Door, anyone?
« Reply #106 on: June 07, 2017, 11:59:09 AM »
I agree most of the contents of the book were  somewhat intuitive to many of us.  However, I found the concept of Millionaires' Kids being the profligate spenders and debtors to be interesting.  It gives me pause because I don't want my daughter to grow up feeling entitled to luxuries.  I definitely see that happening to other high-net-worth families.

rudged

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Re: The Millionaire Next Door, anyone?
« Reply #107 on: September 14, 2017, 10:11:09 AM »
I really liked the Millionaire Next Door, and just read "The Millionaire Mind." The latter was a difficult read it that it was in essence an annotated survey of decamillionaires. I was struck by how some of the claims he made in the Millionaire Mind contrasted with the Millionaire next door. E.g. in the former he stresses the importance of frugality and in the latter he (in places) seems to take it back. For instance, he has a whole section that includes a diatribe about why, for the most part, decamillionaires are wise not to do things themselves (their regular salary pays them more per hour than it costs to have an expert do it), which struck me a downright un-Mustachian perspective.

La Bibliotecaria Feroz

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Re: The Millionaire Next Door, anyone?
« Reply #108 on: September 14, 2017, 10:38:12 AM »
I really liked the Millionaire Next Door, and just read "The Millionaire Mind." The latter was a difficult read it that it was in essence an annotated survey of decamillionaires. I was struck by how some of the claims he made in the Millionaire Mind contrasted with the Millionaire next door. E.g. in the former he stresses the importance of frugality and in the latter he (in places) seems to take it back. For instance, he has a whole section that includes a diatribe about why, for the most part, decamillionaires are wise not to do things themselves (their regular salary pays them more per hour than it costs to have an expert do it), which struck me a downright un-Mustachian perspective.

I had the same struggles with the latter book. Plus... it's terrible advice for MOST people. He is starting with people who are already decamillionaires. Selection bias, anyone? I suspect your average person is better served by being a bit of a generalist. For every decamillionaire he looks at, how many people crashed and burned using very similar, or even the exact same, strategies?

grantmeaname

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Re: The Millionaire Next Door, anyone?
« Reply #109 on: May 19, 2018, 07:08:23 AM »
I finally started reading this book earlier this week. I can understand the fact that it is a classic and that it's in the pantheon of FI books but it's really hard for me to understand why.

The profiled millionaires aren't frugal in an inspiring way, for the most part - they are driving $30,000 cars in 1995. To see frugality, I'm much more likely to reach for a book with actual frugal people in it. And if I'm looking to see the 'why' of frugality I'm much better off reaching for YMOYL or back posts of MMM. On top of that, the financial advice in the book is of only mixed quality (say it with me three times: a CPA is not a financial planner), and many of the recommendations don't comport with how I'd like to live my life given the authors' weird conviction that spending a lot of time on your financial life is somehow a good thing. Finally, with sexist language throughout and a weird conviction that national origin tells you about the nature of people's financial lives, the book feels far more dated than even very old editions of YMOYL.

I've got two chapters to go and I'm hoping there is a hidden pearl or two to make up for the first 200 pages.

plantingourpennies

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Re: The Millionaire Next Door, anyone?
« Reply #110 on: May 19, 2018, 08:47:07 PM »
I've got two chapters to go and I'm hoping there is a hidden pearl or two to make up for the first 200 pages.

You probably won't find it-the best way to understand MND is as a classic.

We're living in a golden age of personal finance information. When MND was published there really wasn't anything like it, but now there is just better stuff out there.

But for many of us, it was a way-post along the path.

Zola.

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Re: The Millionaire Next Door, anyone?
« Reply #111 on: May 21, 2018, 03:22:53 AM »
I have up give up the book, could't get into it, weird interviews, not sure what the goal was,   a bit boring for me.

iris lily

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Re: The Millionaire Next Door, anyone?
« Reply #112 on: May 21, 2018, 11:03:08 AM »
Awww, you guys, I LOVE MND! It just confrimed what I already knew, how i grew up, and that was that “Big Hat No Cattle” people were everywhere, making everyone think they had money. They didnt.

The quiet solidly middle class ways of the millionaire next door were the key to a stable and happy family and financial life. One spouse, professional job or small business, modest house and cars, no economic outpatient help for children beyond college and perhaps weddings or house down payments. .

Zola.

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Re: The Millionaire Next Door, anyone?
« Reply #113 on: May 25, 2018, 04:50:32 AM »
I did like the 'Big Hat No Cattle' premise!

bmjohnson35

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Re: The Millionaire Next Door, anyone?
« Reply #114 on: August 03, 2019, 03:42:48 PM »

Great book for general population.  As for FIRE advocates, it will only confirm what we already know.  I did like the section showing how spoiling your kids is a disservice. 

I read this book in my late 40's, wish I would have read it when I was 18. I think it would really be helpful for the young adults.

BJ

iris lily

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Re: The Millionaire Next Door, anyone?
« Reply #115 on: August 04, 2019, 06:01:39 AM »
I finally started reading this book earlier this week. I can understand the fact that it is a classic and that it's in the pantheon of FI books but it's really hard for me to understand why.

The profiled millionaires aren't frugal in an inspiring way, for the most part - they are driving $30,000 cars in 1995. To see frugality, I'm much more likely to reach for a book with actual frugal people in it. And if I'm looking to see the 'why' of frugality I'm much better off reaching for YMOYL or back posts of MMM. On top of that, the financial advice in the book is of only mixed quality (say it with me  three times: a CPA is not a financial planner), and many of the recommendations don't comport with how I'd like to live my life given the authors' weird conviction that spending a lot of time on your financial life is somehow a good thing. Finally, with sexist language throughout and a weird conviction that national origin tells you about the nature of people's financial lives, the book feels far more dated than even very old editions of YMOYL.

I've got two chapters to go and I'm hoping there is a hidden pearl or two to make up for the first 200 pages.
Grantme, I know this post is old, but I would like to comment:

MND illustrates that one can live “the good life” in America and STILL accumulate assets. That $30,000 car is kept up regularly and driven for 10-15 years. It is an American  or Japanese car, if I remember correctly (straight from my head.) These guys don't practice frugality in the extreme, they have just have simple lives—one original house, one wife.

grantmeaname

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Re: The Millionaire Next Door, anyone?
« Reply #116 on: August 05, 2019, 04:22:02 AM »
Sure. With a high income, you can be not frugal in any one domain of life and still save a lot. But it doesn't mean that the choice in that domain are themselves worth glorifying as the source of your savings.

Isn't it objectively better in nearly every way to buy a 5-year old car for $8,000 and drive that for 5-10 years?

iris lily

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Re: The Millionaire Next Door, anyone?
« Reply #117 on: August 05, 2019, 06:14:58 AM »
Sure. With a high income, you can be not frugal in any one domain of life and still save a lot. But it doesn't mean that the choice in that domain are themselves worth glorifying as the source of your savings.

Isn't it objectively better in nearly every way to buy a 5-year old car for $8,000 and drive that for 5-10 years?
Hunh? Better?

No.

Chris Pascale

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Re: The Millionaire Next Door, anyone?
« Reply #118 on: August 05, 2019, 09:06:25 PM »
I read this book when I didn't know much about much, so it holds a place in my heart. Much more recently I read his last book "Stop Acting Rich," which was okay.

Before he died, I enjoyed his blog. I'm not sure if it's being added to anymore, but the subsequent entries weren't very good.

iluvzbeach

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Re: The Millionaire Next Door, anyone?
« Reply #119 on: August 05, 2019, 09:41:16 PM »
I have been reading this book off and on for years, I truly mean YEARS...as in 10-20 pages at a time, putting it down and picking it up again a year or so later and reading the next few pages, etc. Finally, last week, I told my DH I was going to finish it and he responded with “You’ve been reading that book as long as I’ve known you.” It’s true. We met 12 1/2 years ago. 🙄

I’m happy to report I finished the book this evening. Now on to others that have been sitting, waiting in the wings.

mtnrider

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Re: The Millionaire Next Door, anyone?
« Reply #120 on: August 06, 2019, 06:06:15 AM »
My minority view - this series of books is meh.

The premise is flawed.  The survey is a case study in survivorship bias.  There's no prior or further tracking.  There's not even a look at younger wealthy people. 

The case studies are mildly entertaining, but quite dated, and full of survivorship bias.  Please don't go out and buy a huge car (cars by the pound anyone???) or become a small business owner thinking that those are the ways to sure-fire riches (the author doesn't mention that small business owners are more likely to become wealthy, but also much, much more likely to become bankrupt).

It's great if people are inspired after reading it, especially if you take away the core principle of living below your means.

But if you've read this, I'd suggest picking up Fooled By Randomness as a companion.

Seamster

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Re: The Millionaire Next Door, anyone?
« Reply #121 on: February 11, 2022, 01:58:24 PM »
I read the book once a year, have a signed copy, and am contact with the author's daughter, who wrote part II in 2018 (not as good as the original). I don't think anyone should be allowed to participate in the economy without reading this book! It was the second business/investing book I read after Rich Dad Poor Dad, and I can say the 2nd most important.  I tell myself that no one is my true friend unless they've read the first half this book that I recommend to everyone. Truthfully, my frugal living/desire to be financially free has lost me friends, but, I knew it would and I'm okay with that. 

I first read it over 10 years ago and I still live by it today. It is why I'm still frugal and I attribute my financial successes to this book. In summary, the book taught me that it's okay to not waste money like everyone else in my life does.  Front wheel drive, Android, Smirnoff, 1500 sq ft, only 2 cars, rent things instead of buying.....all these things are the smart choices. 

Anyone saying they don't need this book should realize that if Thomas Stanley (RIP) hadn't done all that research in the 80s and 90s, YOU might not be the person you are today, even if you've never read the book, because when it came it shocked the world and, well, taught the world who the millionaires are.  "That guy drives a BMW, he's rich."  Millionaires next door: "Wrong.  Him buying that car is exactly why he'll never be rich." 

God bless this book and what it's done for me!

Fru-Gal

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Re: The Millionaire Next Door, anyone?
« Reply #122 on: April 11, 2022, 12:35:39 PM »
I too read this book and it was a precursor to changing my thinking around money. And everything in the book came true for me.

clarkfan1979

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Re: The Millionaire Next Door, anyone?
« Reply #123 on: July 01, 2022, 03:19:20 PM »
Ironically I'm finishing it up right now since it was only $3.  There are a lot of good things, but I definitely skimmed a lot of it since it's not very information-dense and has a great deal of repetition.  Then again, contrast it with Gladwell, and you'll see there are sociologists that waste an order of magnitude more space with repetition and general puffery =P

When contrasting with Gladwell, it's important to note that Thomas Stanley has a Ph.D. in Sociology and Gladwell has no formal training in the social sciences. Gladwell is mostly correct. However, he has a few popular concepts that are flat out wrong.

In the book outliers, academics have criticized Gladwell for overemphasizing the role of the environment on behaviors that we know are mostly genetic. For example, when talking about professional athletes a common theme is that they are very competitive. Personality traits are mostly genetic, including competitiveness.

One of my neighbors/friends from my early 20's was drafted into the MLB in the 46th round after high school and 27th round after college, but never signed. He didn't sign because he knew how much work it was to make it to the majors and he wasn't willing to put in the work. He loved playing baseball in college because he didn't have to work that hard for it. He was a naturally gifted athlete that could show up and play well. I think the guy is actually pretty smart to have the foresight to know that he wasn't willing to work hard enough to make it so he didn't even bother trying.
« Last Edit: July 01, 2022, 03:33:18 PM by clarkfan1979 »

 

Wow, a phone plan for fifteen bucks!