The book I chose to review for this course is titled, “The Millionaire Next Door”, by Thomas J. Stanley, Ph.D., and William D. Danko, Ph.D. After learning that it was published in 1996, prior to the widespread availability of the internet, and subsequent ebusiness boom, I was slightly sceptical that the information held within might not be relevant for someone like myself trying to thrive in today’s chaotic economy. Fortunately, I was wrong. The Millionaire Next Door is full of concepts and principles that put into perspective how we view money and status in our society, and also debunks the myth that America’s wealthy are the ones doing most of the spending while living elaborate and carefree lives. There are several ‘takeaway’ principles that are presented to the reader. I will be focusing on the five concepts and ideas that impacted me the most.
“A Millionaire in Blue Jeans?” One of the most valuable principles is found in the very first chapter. Our authors do a wonderful job at dispelling any delusions we have regarding what a Millionaire looks like. I had long assumed, like many others, that the Millionaires of America were the hyperconsumers and elaborate spenders. In fact, we learn that just the opposite is true. I came to understand that, “Wealth is not the same as income”. (The Millionaire Next Door, p. 1, Stanley & Danko) In many cases, income is not at the forefront of relevancy when determining whether someone will become wealthy. There are several factors involved, but ultimately, if a person spends their entire income, the number value of said income simply doesn’t matter. The old age adage regarding spending less than you make is of much more importance. In the Church, this is referred to as ‘living below our means’. We have often been counseled to exercise restraint regarding our spending habits, and have also been commanded to obtain a level of financially secure by building up our savings, staying out of debt, and living within our means. (Teachings of Presidents of the Church: Spencer W. Kimball, (2006), 11423) It seems rather silly that a large percentage of our population would be under the assumption that living a large lifestyle, along with the accumulation of fancy things, would somehow equate to wealth. After reading the book, I have come to understand that many of us have an extremely distorted relationship with money, in the assumption that money is to get and spend, while those who are authentic accumulators of wealth understand that money should be invested and stored up as a measure of safety and peace.
In a life where its value is derived from the price tag attached to personal possessions, it can be easy to throw caution to the wind when it comes to being responsible with money and property. The Izikothane way of life adopts this outlook on life whole-heartedly, which is completely contradictory of the practical lifestyle set forth by Ben Franklin in “The Way to Wealth.” Their ability to spend money at the drop of a hat is nothing like the frugal, save-happy practices that Franklin supports in his work. According to his words, money comes to people that are careful with it, and the Izikothane are anything but (238). The lifestyle revolves around the expenditure of money on things that are not necessities in life; they are luxuries that, if need be, people can live without.
He further shows us that the people of today are richer than their grandparents but are not happier in their lives (from National Statistics of social pathology). Even with these facts, people in the United States still believe if they had more money all of their problems would be solved, but once they reach that next income bracket they are not satisfied and try to reach the next one. Myers et al tells us, "even if being rich and famous is rewarding, no one ever claimed material success alone makes us happy. Other conditions like - family- friends- free time - have been shown to increase happiness" (Csikszentmihaly 145). therefore we must find balance in our own lives, and not just focus on making money. Instead we need friends, family and even free time, as aforementioned doing an activity you enjoy such as listening to music or
When we are little, we all dream of having big fancy houses, lavish cars and everything else that money can buy. However, we find that when people have this kind of lifestyle they are often broken and wanting a kind of life that you cant purchase. “Rich Kids” by Judah and the Lion, describes a life of wealth but not in the money sense. They talk of how we spend most of life trying to become rich and live these extravagant lives, when those material things will never bring us real joy. Mme Loisel wasn't the richest lady, but she had enough. She also had a husband who cared deeply for her and would do anything too see her desires met. However, later in the story she finds that money can only bring her joy for a short time, and then
The Millionaire Next Door gives us an eye opening view into the lives of millionaires and their life styles. Normally we have the impression that most millionaires are the ones who live the most visible wealthy lifestyle, drive the fastest cars and have the big houses on the lake. The Millionaire Next Door looked into these people's lives and we come to find that most of them live the same life we do. One of the main points of the book is how Millionaires live well below their means, they also believe that financial independence is more important then displaying high social status. The book also focuses on how most millionaires are self made and not wealthy from their prior generation.
When average Americans struggle to put food on the table, many affluent people struggle to remain financially sound. Celebrities, politicians, lotto winners, and professional athletes receive millions of dollars in wages and payments, but somehow are unable retain their fortunes. According to the U.S. census bureau, the median family income in the United States is about 30,000 dollars annually; somehow some parents are able to feed their children and fund their children’s education. According to recent studies by CNN Money, the median cost of raising children to age eighteen was 241,080 dollars and that number does not even include the cost of a college education. The cost of a college education is continually on the rise and can go as high as 60,000 dollars a year for private universities. Many of the average family’s wages have remained stagnant while many costs such as: gas, healthcare, groceries, clothing and an education have risen at exponential rates. Unfortunately, many of society’s, wealthy believe they have limitless funds while many of them face charges of fraud and tax evasion. But what causes rich Americans to find the desire to self-indulge? Fame can place individuals with a heavy burden to become successful.
On face value, the Gospel of Wealth seems like a simple suggestion to the problem of improper administration of wealth from the massively successful Andrew Carnegie to fellow rich and successful men. However, on a deeper level, the thesis and underlying structures of the revolutionary Gospel of Wealth are almost all conceived from Darwinian ideologies. Throughout the writing, there are suggestions of certain humans being favored over others in varying situations, adapting to society and its conditions, and the inevitability of competition. In many aspects, Social Darwinism has logical arguments, but in many aspects it doesn’t make sense because of the distinct difference between biological adaptation and societal socio-economic adaptation.
This “Gospel of Wealth” promoted the Social Darwinism theory in ways of contrasting the wealthy versus the poor. It is thought of as ‘with great wealth comes great responsibility’ because the people with more money need to give back more money through taxes to keep the economic system in order. The idea of wealth among the few was the regular and most productive
Carnegie opens his essay with the statement that there are three main ways most wealthy people use or distribute their money. First, some pass their money on to the next generation. Children...
The definition of wealth in America has evolved over the past 300 years. In 1996 Thomas Stanley and William Danko published a book based on their 20-year study of how people become wealthy; entitled The Millionaire Next Door: The Surprising Secrets of America’s Wealthy. A key takeaway is that looks can be deceiving and “wealth is not the same as income” (1). The discussion and reflections from the book prove that high net worth individuals think and act inversely to those without money. This essay will discuss how success is defined, the necessary character traits of successful individuals, how a developing person can lead a successful life, the audience
In the “Gospel of wealth”, Andrew Carnegie argues that it is the duty of the wealthy entrepreneur who has amassed a great fortune during their lifetime, to give back to those less fortunate. Greed and selfishness may force some readers to see these arguments as preposterous; however, greed is a key ingredient in successful competition. It forces competitors to perform at a higher level than their peers in hopes of obtaining more money and individual wealth. A capitalist society that allows this wealth to accumulate in the hands of the few might be beneficial to the human race because it could promote competition between companies; it might ensure health care for everyone no matter their social standing, and parks and recreation could be built for the enjoyment of society.
The short story, "The Rich Brother," by Tobias Wolff represents the same concept that everyday people all over the world encounter. This portrays how having siblings can be an enormous part of a persons life. The rivalry between siblings is often very competitive, but at the same time similar to magnets. When they are not connected it may seem they are independent and whole, but when examined closely it is obvious they are really relying on each other to function properly. Although Pete and Donald's life are separate and completely different, they are in fact very dependent on each other.
Income plays an integral part in the choices individuals and families can make for their future and how they are able to problem solve their current situations. The case study (The Open University, 2016, p. 36.) illustrates how the Brett family are virtually stuck without solutions to problems, even to the point where plans for the future have almost evaporated, whilst the wealthy Confino family are occupied with decisions such as where to eat out next. Debbie Brett has misinformed the repairers so the repair estimate will be greater than a fee she would struggle to pay anyway. This behaviour will have an influence on her children. The danger being if they accept such a despondent and irrational approach to the world, their own future could
By stressing money and material it is easy for some to forget how it is obtained, both in a methodical, and a humanistic sense. By this I am referring specifically to the people of the three classes in the U.S.. Poor people instead of concentrating on education or buying assets or spiritually connecting and becoming a leader, tend to trade their labor for some money, then use all of it to buy “stuff”. They’ll buy clothes, or DVDs, or trinkets, and they feel good about these purchases because they got a good deal, and it increases their material value. None of them will think about where or how it was assembled, because they are distanced from it, and are content with their new acquisition. The middle class trade stressful working days for a little more money, with which they use to buy liabilities like cars or boats, again not thinking about the how they came to be.
A true tale of two dads, one dad is a highly educated professor, the other, an eighth grade dropout. The educated dad left his family with nothing, except a few unpaid bills. The dropout later became one of Hawaii’s richest men and left his son a fortune. The educated dad would say, “I can’t afford it” while the other, asked, “How can I afford it?” Rich dad teaches the boys priceless lessons on money, by making them learn through experience. The most important lesson he teaches is to free yourself from the “rat race” of life and learn to make money work for you, and not be its slave. He knew that financial literacy would help prepare the boys for their life. Though one must have a job, Rich Dad taught the boys to eventually use your day job to begin minding your own business.
..., a person who earns $25,000 is happier than a person who makes $125,000 and an employee who makes $500,000 is only slightly happier than someone who makes $55,000. Lastly, there are more important things in life that and make you happy, for example, friends. They don’t come with a price tag, and if they do, you definitely need new friends. Money won’t make you happy since good times can’t be bought. You don’t need a fancy vacation to have a good time; it’s just a matter of who you spend it with. Over the years, humans have blown the value of money way out of proportion. People make it seem like if you’re not filthy rich, then you won’t live a good life but it’s not true. You can lack money and yet still live a perfect, happy life.