The Millionaire Next Door – Book Review

I do not know why but I am into Financial Blogs these Days. And one of the books I came across on multiple blogs is ‘The Millionaire Next Door’. This book was available on EBay for 2$ with free shipping so I got a copy for myself*.

Anybody who is $ conscious should read this book. It is about 2 researchers who study common habits of millionaires. Here the term Millionaire is someone who has 1 million in savings\investment\worth. Why should you read it? Because it answers the following questions

  1. Where is my money going?
  2. Can we live happily and save with 1 person’s salary in the USA.
  3. Kids are so expensive these days. It is impossible to save with kid(s) in USA?

Some of the most interesting things I learnt from the book

  1. People who drive Flashy and expensive Cars are not necessarily millionaires.
  2. You cannot point out millionaires by their attire\car or their house.
  3. Most Self-Made Millionaires’ households run on budget.
  4. Ivy League Education may guarantee a high paying job but not necessarily a high bank balance.
  5. Millionaires don’t necessarily eat fancy food or at fancy restaurants.
  6. There are more millionaires than we think of.

Maybe if those aren’t the things that you are looking for in a book, the following might be interesting. The authors have presented the book as a case study with detailed math charts. Most of the case studies are presented in a way that one could easily relate to. It is easy to find yourself as a character in the book. So, if not to gain a new perspective on the world of millionaires, read it to judge yourself on the scale set by average millionaire next door. The presentation and point of view of the authors is presented in a practical yet humorous way.

What the book does not do is give you recommendations on what you should do with your money. It just tells you what Millionaires so with their money. Even if it is just for fun, go read it!

 

*Most FI Blogs don’t recommend buying books. They recommend Library.

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