Wednesday, 4 July 2012

The Millionaire Next Door

  I usually don't read books whether of syllabus or any other domain and that's a bad habit indeed but certain books when studied gave a strong message  that yes books are to be read and not be put aside.
Today i decided to give a review of a book i read a while ago and the title of the book is "The Millionaire Next Door" by "Thomas J Stanely & William D Danko".



Actually it's a broad based survey on millionaires living in U.S .It converges on their lifestyle,how they achieved this Millionaire tag,what they buy and how they buy.
Regarding the education millionaires are never healthy and it shows in this book .Only 17% of millionaires attended private high school,18% have master's degree,8% have law degree,6% have medical degree and only 6% are having Ph.D degree.
So education is not a must for becoming rich.Education can uplift you from rags to riches but that's not mendatory.
Regarding gender it is said that men make more wealth than women.Reason not explained in the book.
One more edge we consider about millionaires is that they enjoy  Inheritance but this book clearly negates this, Only 19% receive income from a trust fund or estate and fewer than 20% inherited 10% of the wealth .More than half never received as much as $1 in inheritance and that's really mind boggling.They worked hard and made their lives.One more thing is that fewer than 10% beleive they will receive inheritance Finally a figure of 84% of those who became millionaires without receiving inheritance will make you think  that why we are not millionaires when we enjoy the same features as they have .80%  american millionaires are first generation rich means that their parents or anccestors were not rich.
Above discusion affirms the one liner of Bill Gates:
“ If you’re born poor, it’s not your mistake. But if you die poor, it’s your mistake"
Focussing the llifestyle of millionaires ,it's not as lavish as someone thinks as stat's don't lie Half of the millionaires purchase cloth for $ 399, not a prodigious figure  i guess,They spend $140 on shoes.
Last thing i want to quote here from tthe book is the most interesting one and that's how they  became millionaires and what are the guidelines for becoming millionaires.
A general perspective regarding the millionaires of their countless spendings without any audit or accountability is totally wrong and its  not superfluous  to make a budget of your expenses.It says:
"They became millionaires by budgeting and controlling expenses and they maintain their affluent status the same way".
120 is the figure who make budget against 100 who don't make it.
Even 62.4% of the millionaires know how much they spent on food,shelter,clothing by their family.
Regarding plastic money,American Express Platinum is possessed by 6.2%,Diner's Club by 3.4% and carte Blanche by 0.9% among 385 total of credit cards.

Finally an excerpt from the book is worth reading and i am just pasting it here from the book as it is:
"These people cannot be millionaires! They don't look like millionaires, they don't dress like millionaires, they don't eat like millionaires, they don't act like millionaires--they don't even have millionaire names. Where are the millionaires who look like millionaires?" 

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