I was going through posts on my old blog and uncovered this financial book review. It was written in October 2004, which was a time when using leverage to flip condos was cool, and saving money was boring. Boy have times changed.
The Millionaire Next Door is by Thomas J. Stanley.
From October 2004:
I just finished reading the book The Millionaire Next Door. The core lesson is to be frugal. This is the classic case of preaching to the choir. I’m so frugal that I didn’t buy this book when it was first released in 1996. Instead I waited until the used price dropped to the $3 range. Waiting 8 years to save $17 — that’s frugal!
For the most part I think it’s a little long-winded, but it’s got some valuable lessons. The primary one is wealth comes from saving money and being frugal. Often those that live the rich lifestyle don’t save money and have lower net worths.
Who should read this book? If you are in a profession with a high income (over 100K), such a doctor, you should read this book. The other group that should read this book is wealthy couples with children. The book provides advice on how to be a good high-income parent and mistakes often made by wealthy families when raising children.
We now are learning that the rich lifestyle was fake. It was all demand pulled forward with massive amounts of debt. Now the bill is due. I’m glad I read this book back in 2004.
Jim
Jul 21, 2009 — 11:57 pm
Brilliant book! I listened to the CD version…
My favorite story was when they invited a bunch of millionaires to a party to get to know them. They served fancy food and expensive beverages, but nobody was that receptive. Most of the people turned out to be mostly low-key blue collar frugal types who had grown their own businesses over the years. When they finally asked one of them what kind of beer he liked he responded …”I like two kinds of beer, Budweiser and free.”