Book review: The Millionaire Next Door by Thomas Stanley and William Danko

Posted In: Fitness February 24th, 2013 divider No Comments »

How good is your financial fitness? That’s a question that’s not often asked. I had heard about this book (it’s an oldie 

but a goodie, from 1996) but I had never read it. It finally came through on my Ottawa Public Library wait list.

Even if’s almost 20 years old, I’m pretty sure the principles haven’t changed. Who you think are millionaires and who are
truly millionaires are usually two different crowds.

This book shatters a few pre-conceived notions that millionaires drive flashy cars, wear flashy suits and live in flashy
homes. According to the research, they do nothing of the sort. They are frugal to the max. And that’s how they build their
wealth.

This book came at the right time for me. I’m working for myself so that’s a good first start (most millionaires are self-
employed) but it was a great reminder of why I do what I do: finding financial independence. And it gave a few tips on how
to get there a bit quicker.

• Live below your means: Even millionaires do this and most people are millionaires because they do this.
• Don’t keep up with the Jones’: You can spend a lot of money keeping up appearances or you can invest in your future. It’s very hard to do both.
• Gifts make you weak: Research show that children of affluent people who were given everything, especially at a young age, are not as likely to work as hard. Be careful what you give and how you give it as it could have bad repercussions, especially if you’re trying to entice work ethic.
• Follow your passion: One great tip was to follow your passion as you’re more likely to enjoy what you do and be good at it. And the money will follow.

This is another great book in the stream of letting research show you the way instead of perception or simply marketing. I
would suggest it to anyone who’s looking to build wealth or simply want to know how millionaires truly “live”…

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Since I’m back from a great trip in the Martimes, check out a pretty cool article from Halifax. I stole it from my buddy
Luke’s Facebook feed. It talks about how yoga can help runners kick the injury bug.