The Millionaire Next Door

[street]

Just opened a Christmas present from my wife and the book is The Millionaire Next Door. I have heard of it has any one read the book?

[Car-Guy]

Yes, I have a copy (got it as a gift too) and have read it several times. Interesting enough.

[braumeister]

Many of us have read it and approve. A bit dated now, but still very good.

Another you might find quite useful is "Millionaire Teacher" that gets into a little detail.

[nun]

These books always surprise me as it just seems like common sense. My parents grew up working class in northern England through the Great Depression and passed on their rules of thrift and saving to me. My Mum would never use credit, my Dad gave his entire pay packet to her and was given an allowance for beer. But my Mum was not cheap for cheapness sake as she always bought the best she could afford....."because it lasts longer". My Mum and Dad had a comfortable retirement and left money to me and my brothers. I've taken my Mum's rules and used them to retire as a millionaire at 53 and I hope to pass at least a million on to each of my my three nieces when I die.

[aaronc879]

Yes, I have read the book. Got it from the library for free of course. Would never buy a book new.

[outdoorgirl02]

Loved this book. I read it again every few years.

[Badger]

Quote:

Originally Posted by nun These books always surprise me as it just seems like common sense. My parents grew up working class in northern England through the Great Depression and passed on their rules of thrift and saving to me. My Mum would never use credit, my Dad gave his entire pay packet to her and was given an allowance for beer. But my Mum was not cheap for cheapness sake as she always bought the best she could afford....."because it lasts longer". My Mum and Dad had a comfortable retirement and left money to me and my brothers. I've taken my Mum's rules and used them to retire as a millionaire at 53 and I hope to pass at least a million on to each of my my three nieces when I die.

Sounds familiar although Dad liked a small blend in the evening at home and Mom was from NC. I had to work a little longer but at a career I enjoyed and now we have no financial worries. Yep, common sense.

Cheers!

[nun]

Quote:

Originally Posted by Badger Sounds familiar although Dad liked a small blend in the evening at home and Mom was from NC. I had to work a little longer but at a career I enjoyed and now we have no financial worries. Yep, common sense. Cheers!

For me part of that "common sense" is leaving money to my heirs. I hope they will do the same for theirs.

[6miths]

Yes it is a very well known book and many people would likely be significantly happier if they had read it and took its lessons to heart. Have read it several times along with its companion books.

[street]

I like your story's and my wife belongs to a book club and the book was free. It is brand new I don't think it was ever read. My wife is good with money but spends what he need but has never bought just to buy.

[RenoJay]

That book made a big impact on me. Helped me realize that my dad, who would never let me order a dang Pepsi when we went out to eat, was rich!

[growing_older]

Loved the book. Very influential at the time, and while it's a bit dated now, it's still a classic.

[H2ODude]

Read it a long time ago. I just remember the glorification of the LBYM lifestyle most of us live here. IOW, it's not about impressing the neighbors.

[Bruceski44]

Bought it used at Goodwill and read it. I love the delicious irony that it still has the 50 cent price tag on it.

[Midpack]

Quote:

Originally Posted by 6miths Yes it is a very well known book and many people would likely be significantly happier if they had read it and took its lessons to heart. Have read it several times along with its companion books.

+1. Literally among my top five favorite books ever. Though it's common sense to any LBYMer, it puts everything together in a big picture way. Highly recommended IMHO.

[DrRoy]

I read it long enough ago that I no longer remember the details. What I do remember is that my general reaction was 'I'm already doing that'.

[rayinpenn]

I read the book many years ago about the time I read Financial Peace University. I remember it saying millionaires live simply and drive a f150 and (me: will likely do so until the doors fall off).

[HadEnuff]

"Big hat, no cattle"....I first came across that saying while reading this book. The author did not claim it as his own, merely passing it along.
I was pretty much following the LBYM and put as much away as you can lifestyle when I came across this book, but it was still a helpful confirmation.
I was 45, had lost all I'd worked for in a divorce. I had to start over, financially, and this book helped me realize I could do it.

[bclover]

Quote:

Originally Posted by nun These books always surprise me as it just seems like common sense. My parents grew up working class in northern England through the Great Depression and passed on their rules of thrift and saving to me. My Mum would never use credit, my Dad gave his entire pay packet to her and was given an allowance for beer. But my Mum was not cheap for cheapness sake as she always bought the best she could afford....."because it lasts longer". My Mum and Dad had a comfortable retirement and left money to me and my brothers. I've taken my Mum's rules and used them to retire as a millionaire at 53 and I hope to pass at least a million on to each of my my three nieces when I die.

I think what you have to realize is that what was "common" when we were kids is no longer that "common".

for example like you, I grew up in the 60's and 70's. My parents did not have cc's. No one really did. I remember when my mom got her first store card. It was a HUGE deal. it was a store named "montgomery ward". all my aunts came over to gaze at this thing . Now I'm surprised at how many of my kids friends had cc's in high school. now of course their parents justify it by saying "what if they need money in an emergency" or "it's easier to keep track of how much they spend" and a kid having a cc is not inherently evil but it does send a certain message.

Also when I was a kid, societies emphasis was on saving. Does anyone remember how banks would give you a toaster if you opened up a savings account or anyone remember the old S&H green stamps? you got so many after making a purchase and then pasted them in this book to get a free reward.

Now we are a consumer spending based society. We go to the PHillies games in the summer, the nano second your kid walks through the turnstile he can get a "free" phillies cap if you sign up for a phillies mastercard. Kids see that and unless we explain to them that the "free cap" isn't really free, it's easy to see how they would get the idea of "credit=cool stuff".

I had to teach my kids budgeting. When I was a kid the banks were closed from friday evening to Monday morning. You got your check and whatever you had in your pocket you had to make it last because you weren't easily getting anymore.
My kids though did not have that lesson, they see me pull up to the ATM any time I want to get cash and after some really interesting comments I realized I needed to show them what goes on behind that magical machine.

Their "common" reality is instant cash. get paid on Friday, money is available thursday. lol. they don't have any clue about getting paid, depositing a check, waiting for the check to clear, then go shopping, yada yada yada.


So I love the book because of the fact that a lot of the stuff we considered "common" actually is really not all that "common" nowadays and needs to be taught.

[Amethyst]

What I remember from that book is the idea that literally everybody who has nicer stuff than you do, must be in debt up to their eyeballs. True of many, but hardly all.