The Millionaire Next Door, simply put, is an extensive examination of wealth and the wealthy in America told by Thomas J. Stanley and William D. Danko.
It takes its bearing from the fact that the millionaires of America aren’t just the ones we see on TV as Fortune 500 executives or renowned public figures. They are regular people who live… well, next door.
Call them the invisible rich.
Growing up, did you ever have a friend at school who seemed to be the same as you – the same school, lived in the same neighbourhood, and because of that, your parents became friends with theirs?
Then one Saturday, you go to their house for a visit and you realize, “Damn, they’re rich!” Big house with a pool and a vast backyard, housekeepers, family pictures in beach houses, and a collection of souvenirs from the 37 countries they have gone to for vacation over the years.
Yep! These are the people this book talks about. They are everyday people who have built wealth over the years through diligence, delayed gratification, and informed investments, and now have a good life for themselves and their families, well-prepared for retirement.
5 wealth-building facts
Here are 5 wealth-building facts about these millionaires next door, and tips you can take from them:
1. They pick the right career field
Earning potentials differ based on different fields, even amongst jobs that require similar education and training. The millionaire next door chooses a career path that has long-term earning potential.
It may not seem like much of a big deal, but I reckon that there are way too many things already to worry about. Making decisions to ensure that your job goes extinct in the near future is not one of them.
2. They live below their means
This is one of the tips I always preach, but it may sound different coming from Stanley and Danko. The millionaire next door is frugal and strategic in spending. Living below your means does not always have to be cutthroat – it can be painless once you get used to it.
Having automated savings and investment plans really helps with this. This way, a specified amount of money is deducted and saved for you securely, and you only get to spend what is left. With time you get used to it.
Create one now and start saving.
3. Avid planners? 100%
The millionaire next door is not a get-today-spend-tomorrow type of person. Planning is a key part of their strategy. From understanding their risk appetite to knowing how much they should set aside for emergencies, planning is second nature to them.
This is because life happens, and at any point, an unforeseen event can occur that takes one back to a financial square one. The millionaire’s mindset is to have backup and backup of the backup. That way, you’re always two steps ahead.
4. They started investing early
The returns they enjoy today are from investments made a long time ago. Return on investment does not happen in a day. Slow wealth is sustainable, and thanks to the gods of compounding, investing is a surefire way to becoming the millionaire next door.
The best time to start investing was yesterday, and the next best time is now. Not later. Now.
Learn more about Why Investing Early Is Important.
5. They don’t care for status symbols
I’ll paraphrase what Morgan Housel said in his book “Psychology of Money”: spending money to prove that you have money is the easiest way to have no money.
Read it again.
Remember that a status symbol is exactly that – a symbol. It doesn’t prove anything. Real wealth isn’t always visible in material possessions, which is the entire premise of this book.
So, basically…
There are more millionaires around you than you realize, and if you want to join them, you have to study them, understand their habits, adjust your mindset and take necessary action.
This book “The Millionaire Next Door” is more than just a narration of millionaire facts and habits. It’s an eye-opener that attaining wealth is possible, so you now have permission to start building generational wealth on your terms.
Start today. Start now.
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Does Cowrywise have 2FA on its app?
Yes Deji. https://cowrywise.com/blog/two-factor-authentication/
This is an amazing article, Cowrysiwe. Kudos to everyone who worked on it.
Really nice article, keep it up Cowrywise and thanks for the awareness.
Thanks for these eyes openers.
Guys you are the best always
But,you should have resolved Funmi’s complain before she made it public.so,was the court order gotten?If it took forever for a funmi to get her funds back, what happens to people without clout?
Let me explain. While Obama was at a rally, someone from the crowd shouted at him about how immigrants were been deported. The issue was that these were illegal immigrants who were working honestly but contributing to America’s workforce, and hence it’s development… But it was tough, they are still illegal immigrants, right? So Obama replied: We [America] are a country of immigrants, yet we are a country of law. How do these two things cohabitate? The answer is: reasonable compromise.
It might be hard to explain to you that it wasn’t the clout that made her get her money, it was months of hard work in tracing the suspected thieves and following the law. The funds were transferred in a normal way any funds will, and the best thing was to work with Funmi to get the money back… By following the law. Unfortunately it took more time than Funmi’s patience, but eventually.
As a Software Engineer myself, one requirement is to always think and be ahead of the intruders… But you’d be surprised that as much as we try to make things for consumers that make their lives easier, there are people somewhere who’s purpose is to destroy that work. It’s tough but possible. We can stop them, or at worse, recover our stolen funds or losses… Even Twitter and other famous website gets gamed or hacked. Is this a justification for Funmi’s case, no. It’s just a point to help you understand, these things are tough. And we all have a role to play.
But we’d hold your hands all through. Trust us.
Impactful and mind opening
Funmi made our cowrywise even stronger?
Thanks for the eye opener. Does cowrywise have 2FA.
Yes we do now, Ifeoma https://cowrywise.com/blog/two-factor-authentication/
Nice one
My account was flagged because of a transaction I made and my 2000 is hanging. How do I get it back????
Thanks for your patience. A flag is initiated when we suspect a transaction, and it is designed to keep you safe. Have you filled out the verification form we sent, please?
My account was flagged I don’t know why and my 90000 is hanging. How do I get it back????
My account is flagged ?and I send a send to be open back I fill the forms and everything? It a week now till eating ,I need the money for business pls u guys should help me ,I can’t even send massage for help ,it only show before massage and she is not reply am getting scared already
This is enlightening. Cowrywise, thanks to your team.
Thanks cowry wise. For a more detailed information on this issue. Thank you.
Insightful and Enlightening. Thanks
Why do I need to my bvn to cowrywise, I don’t feel that is necessary since have already linked my atm card
Why do I need to add my bvn to cowrywise, I don’t feel that is necessary since have already linked my atm card
With your BVN added, we can ensure that withdrawals only go to your bank account.
how do i unflagged my account?
This is a very insightful article. Thanks.
Thank you.
Please I have been asking and begging to unflage my account and no attempt from you please I will still be pleading again unflage my account so I can top up my savings I have sent emails upon emails chart on charts but no attempt to unflage my account was made please unflage my account
un flagg my account why is that flagging thing just common. now i cannot withdraw my saving when i have plannned to use to t
o buy a system
Good insight from Cowrywise team
More win ?
Is it working
Hi ope, I want to withdraw my savings but I am finding it difficult because they keep asking me to put another maturity date which I don’t want to extend that very savings. This is my first time of withdrawal on cowrywise.
This is super enlightening. Thank you Cowrywise ?
I learned a lot from this kudos to the writer