Have you ever wondered what being a millionaire is like?

When asked that question, most people who aren’t in that grouping probably think of fast cars, high-society life and the likes. And if asked to make a guess of how they got there, these same people would probably go blank. Therefore, there’s nothing better than a good dose of reality and that’s exactly what ‘The Millionaire Next Door‘ (henceforth TMND) brings to the table.

TMND was the product of interviews conducted with 1000 persons belonging to the much sought-after status; and provides a good insight into how these people got there and what their lives are really like. The biggest take-aways from the book would be:

“Wealth is what you accumulate, not what you spend”

The authors, Thomas J Stanley and WilliamD Danko,  also identify seven factors that separate millionaires from non-millionaires which are:

1. They live well below their means.

2. They allocate their time, energy and money efficiently, in ways conducive to building wealth.

3 . They believe that financial independence is more important than displaying high social status.

4. Their parents did not provide economic outpatient care.

5. Their adult children are economically self-sufficient.

6. They are proficient in targeting market opportunities.

7. They chose the right occupation.

I’d highly recommend anyone who harbours thoughts of financial freedom (btw, just to burst your bubble, financial freedom is no longer having a million bucks, that’s hardly enough) to read this book along with The Richest Man in Town. Both books provide insights on what kinds of life the rich truly live and how to get there.

PS: I wrote this much much earlier but left it as a draft and totally forgot about publishing it! Luckily posts like this are timeless.

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