I only read TMND once, many years ago. I enjoyed it, and it gave me a mental boost that I was on the right track with how I was managing my finances. I don't remember for sure, but most likely I skimmed through parts that, like OP, maybe I found boring or irrelevant.
Millionaire Next Door - The Book
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audreyh1
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Back when it first came out the big surprise for most people was that there might be a millionaire hiding next door in plain sight, and that they were unlikely to be practicing very conspicuous consumption and thus not recognized.
Its main point was that conspicuous consumption/keeping up with the Joneses was often detrimental to building net worth and thus being able to retire early.
P.S. On a personal note a couple of fun things about this book was that it turns out to be the very first thing I ordered from Amazon, and that at the time I read it, we were actually one of those sneaky millionaires hiding next door. I was actively working on the RE part of my FIRE plans at the time. It was very reinforcing for me.
Its main point was that conspicuous consumption/keeping up with the Joneses was often detrimental to building net worth and thus being able to retire early.
P.S. On a personal note a couple of fun things about this book was that it turns out to be the very first thing I ordered from Amazon, and that at the time I read it, we were actually one of those sneaky millionaires hiding next door. I was actively working on the RE part of my FIRE plans at the time. It was very reinforcing for me.
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Car-Guy
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
IMO, that is absolutely correct. I remember after first reading it, then wondering about some of the folks in my (middle class at best) neighborhood... I'll never know....
Midpack
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
One of the most influential personal finance books I've read. DW and I were already frugal, but it reinforced the idea which was helpful. Told us we were on the right track, and not to be impressed by so many people who look wealthy. I was quite a bit younger then but I didn't realize how little you can tell about someone by their outward appearance and "displays of wealth." People I assumed were wealthy weren't, they could be ruined by the smallest financial setback. And some of the most unassuming and "unshowy" people we meet, who don't look wealthy at all - are in fact FI many times over. It probably wouldn't have the same impact on someone who read it later in life.
ExFlyBoy5
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
I agree with your sentiment. I think many of the critics are overlooking the period this was released...there just wasn't a lot of antidotal information out there at the time for people to read about and there weren't 1,232,553 personal finance/FIRE blogs that regurgitate the same thing over and over and over and over.
audreyh1
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
I think you are both right on!
That was certainly my personal experience when the book came out.
Dtail
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
EastWest Gal
Thinks s/he gets paid by the post
Another work that is largely fiction is Rich Dad Poor Dad, by Robert Kiyosaki. It's multi-level-marketing garbage, IMO. Don't buy!
Markola
Thinks s/he gets paid by the post
+1. It was a pivotal book for me and very original when it came originally out in the 1990s. Last week I walked through a JC Penney’s on the way to the Apple Store and thought about those millionaires next door who had the Penney’s credit card that they, of course, paid off in full every month. The errand was on a weekday morning, which I could do casually since I’m FIREd in my 50s, and I had a wave of appreciation for the lessons in that book. I didn’t apply for the credit card though [emoji56]
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Ha! I really liked Rich Dad Poor Dad as it points out the difference between a true asset (things that produce income - like an investment) and a liability (things that cost money - like a car or a child). I don’t remember the multi-level marketing garbage, but I always remembered the asset and liability examples.
JohnnyBGoode
Recycles dryer sheets
Like many, I read TMND many years ago. It was validating in its way and I enjoyed it, but not life-changing as I was already on the path anyway. Never believed in the "keeping up with the Joneses" mentality, but I can see it could be helpful to some. OTTH, the Bogleheads Guide to Retirement was amazing - I read it just when I was taking over my own financial planning and every page was gold.
I think the impact of a book is the union of book quality + the receptiveness of the person reading the book. I am not surprised that many on this forum would not be blown away by TMND. But enough folks have purchased it over the years I expect there is an audience that was hungry for it at the time.
I think the impact of a book is the union of book quality + the receptiveness of the person reading the book. I am not surprised that many on this forum would not be blown away by TMND. But enough folks have purchased it over the years I expect there is an audience that was hungry for it at the time.
scrabbler1
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
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Has anyone here read both TMND and the more recent book, "Playing With FIRE"? That was the book which came out about 2 years ago and had a short documentary on YouTube. I recall many of us ridiculing the stars of that book/video, especially when the couple moved in with one of their parents, then complained about a loss of privacy.
Is reading TMND worth my time, even just out of curiosity?
Is reading TMND worth my time, even just out of curiosity?
I also disliked TMND and struggled to finish it. It seemed like every single one of the author's case studies ate bland food, drove boring cars, and were entrepreneurs. If I really thought all millionaires (or multi-millionaires in today's dollars) were like that, I'd take measures to avoid them lest I swoon from boredom.
+1. If I were to describe that book in a single word, it'd be "underwhelming". And I read it as a teenager. However, I did manage to glean a single nugget from it: Assets make you money, Liabilities cost you money. That was a clear concept that hadn't been adequately explained in my HS Economics class.
+1. If I were to describe that book in a single word, it'd be "underwhelming". And I read it as a teenager. However, I did manage to glean a single nugget from it: Assets make you money, Liabilities cost you money. That was a clear concept that hadn't been adequately explained in my HS Economics class.
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Graybeard
Full time employment: Posting here.
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I read the book about 20 years ago. I probably heard about it from Bob Brinker's radio show. I thought it was a very interesting book and thought he wrote it about me! I sure wasn't a millionaire but I have always been frugal, LBYN type, always drove used cars into the multiple hundreds of thousands miles, heck I still have a vehicle I bought new in 1973. Frankly, anyone that saw me would probably have thought I was living paycheck to paycheck. The book didn't change or inspire me as I was doing pretty much what it was about and today I am TMND! 
Major Tom
Thinks s/he gets paid by the post
I have never read the book. When I started frequenting The Motley Fool Forums (before they changed), and then this wonderful forum, it became apparent that it was a staple of sorts - a gospel, a respected tome. I figured that the general themes of the book were topics which I had already taken to heart, and didn't feel an urgent need to read it.
I agree with those who have made the point that, in the years since TMND was first published, the themes and ideas in it have become much more mainstream, and are available from many sources on the internet - a resource that was far less developed in 1996 than it is now.
I agree with those who have made the point that, in the years since TMND was first published, the themes and ideas in it have become much more mainstream, and are available from many sources on the internet - a resource that was far less developed in 1996 than it is now.
RetireeRobert
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Begs the question, why would someone who says "being a millionaire was never my goal" even buy a book called "The Millionaire Next Door"? Just to throw away your own good money?
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Begs the question, why would someone who says "being a millionaire was never my goal" even buy a book called "The Millionaire Next Door"? Just to throw away your own good money?
It may raise the question, but it does not "beg the question". Begging the question is a specific type of logical fallacy that assumes the truth of the conclusion. See https://en.wikipedia.org/wiki/Begging_the_question
RetireeRobert
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I stand corrected.
Actually, I am sitting corrected.
Yes, I am a pedant sometimes. All the best.
RetireeRobert
Thinks s/he gets paid by the post
So, are you retired from some type of teaching?
ocean view
Full time employment: Posting here.
Begs the question, why would someone who says "being a millionaire was never my goal" even buy a book called "The Millionaire Next Door"? Just to throw away your own good money?
Buy a book? He, of course, checked it out from the library.
RetireeRobert
Thinks s/he gets paid by the post
Yes, that would probably be more typical of someone in this forum, that's for sure.
But it still "raises" the same question!
Markola
Thinks s/he gets paid by the post
Begs the question, why would someone who says "being a millionaire was never my goal" even buy a book called "The Millionaire Next Door"? Just to throw away your own good money?
That’s what DW seems to say about most books her book club reads. She seems to like the wine, though.
pacman1234
Dryer sheet wannabe
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I first read the Millionaire Next Door as an 8th grader (20+ years ago). I then read the Millionaire Mind and followed Stanley's blog up until his passing. At that time, the personal finance space as it exists today simply didn't exist back then. TMND was the first personal finance book I read and it had a profound impact on me. As a 13 year old, I learned about the importance of career, living below your means, the concept of all hat and no cattle, the age and demographic of most millionaires (e.g. correlation between age and wealth) which meant I might need to be patient in accumulating wealth, importance of choosing a spouse, the fact that millionaires weren't necessarily straight A students, concept of keeping up with the Jones, over representation of business owners, examples of people in ordinary careers (i.e. teachers) becoming millionaires, and how business owners in blue collar or unsexy fields could become financially successful. I couldn't think of a better book to start off my financial education.
While there are way more options today for financial education, there is also way more noise. Imagine being a beginner and starting your journey by reading Wall Street Bets on Reddit or another similar message board. You might be tempted to throw all your money into a Meme stock or crypto. Or you might see peers right out of college driving entry level German cars. TMND helped me see past that noise. I don't know anyone else my age that is reading E-R, Bogleheads, or really any books on investing or personal finance. Most of my peers just ask their parents for financial advice such as how to invest their 401k.
While there are way more options today for financial education, there is also way more noise. Imagine being a beginner and starting your journey by reading Wall Street Bets on Reddit or another similar message board. You might be tempted to throw all your money into a Meme stock or crypto. Or you might see peers right out of college driving entry level German cars. TMND helped me see past that noise. I don't know anyone else my age that is reading E-R, Bogleheads, or really any books on investing or personal finance. Most of my peers just ask their parents for financial advice such as how to invest their 401k.
ncbill
Thinks s/he gets paid by the post
And "Rich Dad, Poor Dad" belongs in the "power of positive thinking" genre.
I'd recommend Dale Carnegie (or Napoleon Hill) over the above any day.
I'd recommend Dale Carnegie (or Napoleon Hill) over the above any day.
