{"id":6166,"date":"2021-10-12T23:56:39","date_gmt":"2021-10-12T22:56:39","guid":{"rendered":"https:\/\/cowrywise.com\/blog\/?p=6166"},"modified":"2023-01-22T23:54:47","modified_gmt":"2023-01-22T22:54:47","slug":"millionaire-next-door","status":"publish","type":"post","link":"https:\/\/cowrywise.com\/blog\/millionaire-next-door\/","title":{"rendered":"5 Wealth-Building Tips from \u201cThe Millionaire Next Door\u201d"},"content":{"rendered":"\n<p>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.<\/p>\n\n\n\n<p>It takes its bearing from the fact that the millionaires of America aren\u2019t just the ones we see on TV as Fortune 500 executives or renowned public figures. They are regular people who live&#8230; well, next door.<\/p>\n\n\n\n<p class=\"has-background\" style=\"background-color:#f5f7fc\">Call them the <em>invisible rich.<\/em><\/p>\n\n\n\n<p>Growing up, did you ever have a friend at school who seemed to be the same as you &#8211; the same school, lived in the same neighbourhood, and because of that, your parents became friends with theirs?&nbsp;<\/p>\n\n\n\n<p>Then one Saturday, you go to their house for a visit and you realize, \u201cDamn, they\u2019re rich!\u201d 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.<\/p>\n\n\n\n<p>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.<\/p>\n\n\n<div class=\"shortcode-block\">    <div class=\"inhype-postline-block-wrapper\">\n      <div class=\"container\">\n        <div class=\"row\">\n          <div class=\"inhype-postline-block inhype-postline-block-597833 inhype-block clearfix\">\n            <div class=\"owl-carousel\">\n            \n                  <div class=\"inhype-post\">\n                    <div class=\"inhype-postline-block-content\">\n\n                      <div class=\"inhype-postline-details\">\n                        <div class=\"post-categories\"><a href=\"https:\/\/cowrywise.com\/blog\/money-guides-and-tips\/\"><span class=\"cat-dot\" data-style=\"background-color: #000000;\"><\/span><span class=\"cat-title\">Guides<\/span><\/a><a href=\"https:\/\/cowrywise.com\/blog\/saving-tips\/\"><span class=\"cat-dot\" data-style=\"background-color: #000000;\"><\/span><span class=\"cat-title\">Savings<\/span><\/a><\/div>\n                        <h3 class=\"post-title\"><a href=\"https:\/\/cowrywise.com\/blog\/honey-budget-yinka-ogunnubi\/\">Honey, Is It In The Budget? A Chat With Yinka Ogunnubi<\/a><\/h3>\n                                                <div class=\"post-date\"><time class=\"entry-date published updated\" datetime=\"2017-12-31T13:13:49+01:00\">December 31, 2017<\/time><\/div>\n                                              <\/div>\n\n                                            <a href=\"https:\/\/cowrywise.com\/blog\/honey-budget-yinka-ogunnubi\/\" class=\"inhype-post-image-link\">\n                        <div class=\"inhype-post-image\" data-style=\"background-image: url(https:\/\/cowrywise.com\/blog\/wp-content\/uploads\/2017\/12\/3.-Honey-is-it-in-the-Budget_.png);\"><\/div>\n                      <\/a>\n                                          <\/div>\n                  <\/div>\n            \n                  <div class=\"inhype-post\">\n                    <div class=\"inhype-postline-block-content\">\n\n                      <div class=\"inhype-postline-details\">\n                        <div class=\"post-categories\"><a href=\"https:\/\/cowrywise.com\/blog\/money-guides-and-tips\/\"><span class=\"cat-dot\" data-style=\"background-color: #000000;\"><\/span><span class=\"cat-title\">Guides<\/span><\/a><a href=\"https:\/\/cowrywise.com\/blog\/investment-tips\/\"><span class=\"cat-dot\" data-style=\"background-color: #000000;\"><\/span><span class=\"cat-title\">Investing<\/span><\/a><a href=\"https:\/\/cowrywise.com\/blog\/money-tips\/\"><span class=\"cat-dot\" data-style=\"background-color: #000000;\"><\/span><span class=\"cat-title\">Money Tips<\/span><\/a><\/div>\n                        <h3 class=\"post-title\"><a href=\"https:\/\/cowrywise.com\/blog\/mutual-funds-april-2021\/\">Market Slice: Top Mutual Funds in April 2021<\/a><\/h3>\n                                                <div class=\"post-date\"><time class=\"entry-date published updated\" datetime=\"2021-05-06T06:24:06+01:00\">May 6, 2021<\/time><\/div>\n                                              <\/div>\n\n                                            <a href=\"https:\/\/cowrywise.com\/blog\/mutual-funds-april-2021\/\" class=\"inhype-post-image-link\">\n                        <div class=\"inhype-post-image\" data-style=\"background-image: url(https:\/\/cowrywise.com\/blog\/wp-content\/uploads\/2021\/05\/mutual-funds-april-2021.png);\"><\/div>\n                      <\/a>\n                                          <\/div>\n                  <\/div>\n                        <\/div>\n          <\/div>\n        <\/div>\n      <\/div>\n    <\/div>\n    <\/div>\n\n\n\n<h2 class=\"wp-block-heading\">5 wealth-building facts<\/h2>\n\n\n\n<p>Here are 5 wealth-building facts about these millionaires next door, and tips you can take from them:<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"576\" src=\"https:\/\/cowrywise.com\/blog\/wp-content\/uploads\/2022\/08\/career-1024x576.jpg\" alt=\"career\" class=\"wp-image-8257\" srcset=\"https:\/\/cowrywise.com\/blog\/wp-content\/uploads\/2022\/08\/career-1024x576.jpg 1024w, https:\/\/cowrywise.com\/blog\/wp-content\/uploads\/2022\/08\/career-300x169.jpg 300w, https:\/\/cowrywise.com\/blog\/wp-content\/uploads\/2022\/08\/career-768x432.jpg 768w, https:\/\/cowrywise.com\/blog\/wp-content\/uploads\/2022\/08\/career-1536x864.jpg 1536w, https:\/\/cowrywise.com\/blog\/wp-content\/uploads\/2022\/08\/career-2048x1152.jpg 2048w, https:\/\/cowrywise.com\/blog\/wp-content\/uploads\/2022\/08\/career-360x203.jpg 360w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<h3 class=\"wp-block-heading\">1. <strong>They pick the right career field<\/strong><\/h3>\n\n\n\n<p>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.&nbsp;<\/p>\n\n\n\n<p>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.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">2. <strong>They live below their means<\/strong><\/h3>\n\n\n\n<p>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 &#8211; it can be painless once you get used to it.<\/p>\n\n\n\n<p>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. <\/p>\n\n\n\n<p class=\"has-background\" style=\"background-color:#f5f7fc\"><a href=\"http:\/\/cwry.se\/blog_signup\">Create one now<\/a> and start saving.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>3. Avid planners? 100%<\/strong><\/h3>\n\n\n\n<p>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 <a href=\"https:\/\/cowrywise.com\/risk-assessment\">risk appetite<\/a> to knowing how much they should set aside for <a href=\"https:\/\/cowrywise.com\/blog\/emergency-fund\/\">emergencies<\/a>, planning is second nature to them.<\/p>\n\n\n\n<p>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\u2019s mindset is to have backup and backup of the backup. That way, you\u2019re always two steps ahead.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><a href=\"http:\/\/cwry.se\/blog_signup\" target=\"_blank\" rel=\"noopener\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"221\" src=\"https:\/\/cowrywise.com\/blog\/wp-content\/uploads\/2021\/04\/CTA-Card-8-1-1024x221.png\" alt=\"\" class=\"wp-image-4675\" srcset=\"https:\/\/cowrywise.com\/blog\/wp-content\/uploads\/2021\/04\/CTA-Card-8-1-1024x221.png 1024w, https:\/\/cowrywise.com\/blog\/wp-content\/uploads\/2021\/04\/CTA-Card-8-1-300x65.png 300w, https:\/\/cowrywise.com\/blog\/wp-content\/uploads\/2021\/04\/CTA-Card-8-1-768x166.png 768w, https:\/\/cowrywise.com\/blog\/wp-content\/uploads\/2021\/04\/CTA-Card-8-1-1536x332.png 1536w, https:\/\/cowrywise.com\/blog\/wp-content\/uploads\/2021\/04\/CTA-Card-8-1-2048x442.png 2048w, https:\/\/cowrywise.com\/blog\/wp-content\/uploads\/2021\/04\/CTA-Card-8-1-360x78.png 360w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/a><\/figure>\n\n\n\n<h3 class=\"wp-block-heading\">4. <strong>They started investing early<\/strong><\/h3>\n\n\n\n<p>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 <a href=\"https:\/\/cowrywise.com\/blog\/compound-interest-work\/\">compounding<\/a>, investing is a surefire way to becoming the millionaire next door.&nbsp;<\/p>\n\n\n\n<p>The best time to start investing was yesterday, and the next best time is now. Not later. Now.<\/p>\n\n\n\n<p class=\"has-background\" style=\"background-color:#f5f7fc\">Learn more about <a href=\"https:\/\/cowrywise.com\/blog\/why-investing-early-is-important\/\">Why Investing Early Is Important<\/a>.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>5. They don\u2019t care for status symbols<\/strong><\/h3>\n\n\n\n<p>I\u2019ll paraphrase what Morgan Housel said in his book \u201cPsychology of Money\u201d: spending money to prove that you have money is the easiest way to have no money.&nbsp;<\/p>\n\n\n\n<p>Read it again.<\/p>\n\n\n\n<p>Remember that a status symbol is exactly that &#8211; a symbol. It doesn\u2019t prove anything. Real wealth isn\u2019t always visible in material possessions, which is the entire premise of this book.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><strong>So, basically&#8230;<\/strong><\/h4>\n\n\n\n<p>There are more millionaires around you than you realize, and if you want to join them, you have to study them, <a href=\"https:\/\/cowrywise.com\/blog\/wealthy-people-spend-time\/\">understand their habits<\/a>, adjust your mindset and take necessary action.<\/p>\n\n\n\n<p>This book \u201cThe Millionaire Next Door\u201d is more than just a narration of millionaire facts and habits. It\u2019s an eye-opener that attaining wealth is possible, so you now have permission to start building generational wealth on your terms.<\/p>\n\n\n\n<p class=\"has-background\" style=\"background-color:#f5f7fc\">Start today. <a href=\"http:\/\/cwry.se\/blog_signup\">Start now.<\/a> <\/p>\n\n\n\n<p class=\"has-large-font-size\"><strong>Related Posts<\/strong><\/p>\n\n\n\n<p class=\"has-medium-font-size\"><a href=\"https:\/\/cowrywise.com\/blog\/generational-wealth\/\"><strong>How to Build Generational Wealth: A Step-by-Step Guide<\/strong><\/a><\/p>\n\n\n\n<p class=\"has-medium-font-size\"><a href=\"https:\/\/cowrywise.com\/blog\/wealthy-people-spend-time\/\"><strong>How Do Wealthy People Spend Time?<\/strong><\/a><\/p>\n\n\n\n<p class=\"has-medium-font-size\"><a href=\"https:\/\/cowrywise.com\/blog\/manage-sudden-wealth\/\"><strong>How To Manage Sudden Wealth<\/strong><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Millionaire Next Door, simply put, is an extensive examination of wealth and the wealthy in America told by Thomas J. Stanley&#8230;<\/p>\n","protected":false},"author":1,"featured_media":6167,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false,"footnotes":""},"categories":[407,134,135],"tags":[415,180,414,181],"coauthors":[463],"class_list":{"0":"post-6166","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-book-reviews","8":"category-money-guides-and-tips","9":"category-investment-tips","10":"tag-book-review","11":"tag-investment","12":"tag-millionaire","13":"tag-savings"},"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v24.2 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>5 Wealth-Building Tips from \u201cThe Millionaire Next Door\u201d - Cowrywise Blog<\/title>\n<meta name=\"description\" content=\"Not all millionaires are Fortune 500 executives. Some are next door to you. 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