The Millionaire Next Door By William Danko And Thomas J. Stanley

The Millionaire Next Door written by William Danko and Thomas J. Stanley illustrates the misconception of high luxury spenders in wealthy neighborhoods are considered wealthy. This clarifies that American’s who drive expensive cars, and live in lavish homes are not millionaires and financially independent. The authors show the typical millionaire are one that is frugal, and disciplined. Their cars are used, and their suits were purchased at a discount. As we read the book from cover to cover are misconceptions start to fade. The typical millionaire is very frugal in all endeavors and finds the best discounts possible. A budget is implemented daily, monthly, and annually for a typical millionaire. They live by the budget and are goal oriented.

The typical millionaire does not have an extraordinary amount of debt. The lifestyle of a typical millionaire is frugal in all its endeavors and exhibits the seven factors discussed in the book. A typical house of an average millionaire is quite surprising when reading the book. Total purchase of the house is twice their salary, or even less. The budgeting habits of a millionaire is strict, goal oriented, and discipline. According to the book you do not to have a high net worth to reach goals of wealth. The book describes their habits as disciplined. The budget is seen as a way of life, a part of living. For example the expenses almost always never exceed the income and they follow the budget closely. In the text the author mentions that the reason why millionaires maintain affluence and wealth is their budget. Also millionaires spend more time than the average American of financial research and maintaining their finances. The example of the North’s and the South’s are a good example of a good and bad budgeting example. The North’s were more frugal and strict with budgeting than the South’s. North’s live well below their means, buys used vehicles, and places a big deal on budgeting. In contrast the South’s have no control on their spending and no budget. Dr. South has a great job, but he and his wife do not collaborate

The lesson of teaching them to be disciplined and frugal is one of the instructions I plan to implement with my kids. My family instilled this in my early years in Anchorage, Alaska working on a fishing site catching fish. The labor was hard and grueling because we would have to remove the fish from the net and load onto the truck. Then we would transport the fish to a cannery where the fish would be distributed. The lessons my mom instilled in me on that fishing site is discipline and hard work. Earning a check will not be hard work, and when you did earn it contemplate the grudging tasks for receiving it. After working and receiving a small check they would always persuade me to save, and to this day it helped me greatly. Over the summers I would save the funds from working this job and various other jobs, and I had a goal of a truck. The discipline learned at the set netting site allowed me to reach my goals of purchasing a ten thousand dollar truck. The process was not easy, but after purchasing the truck with my saving I’m thankful for these lessons because I do not have any debt. These lessons will be taught to my kids, and they will learn to be frugal and