The Millionaire Next Door Essay

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Pages: 4

The Millionaire Next Door is a book was written by Thomas J. Stanley and William D. Danko. The book is a collection of research done by the two authors in the profiles of America’s millionaires. The term 'millionaire' refers to U.S. households with a net-worth exceeding one million dollars. I always believed that you are considered wealthy when you make a high income. According to the authors, most high income earners are not rich, which surprised me. Most people with high incomes fail to accumulate any lasting wealth. They live hyper-consumer lifestyles, they spend their money as fast as they earn it. I always perceived millionaires as living the lavish life with their big sport utility vehicles and huge mansions. Well I was wrong, in …show more content…
According to the authors, “Very often those who supply the affluent become wealthy themselves.” The authors discuss how one of the best ways to make money is to sell products or services to those who already have money. They list a number of occupations they feel have long-term potential in this area. This makes sense to me because if your target audience doesn’t have any wealth they’re not going to buy your product or service. They chose the right occupation. The authors state that “self-employed people are four times more likely to be millionaires than those who work for others.” There is no magic list of businesses from which to become wealthy. People can be successful with any type of business. In fact, most millionaire business owners make their money in normal industries. They build cabinets. They sell shoes. They’re dentists. They own bowling alleys. They make boxes. There’s no list of occupations. This baffled me because I always believed you needed to have a unique business to make lots of money. I always believed too many people own these “normal” types of businesses to actually become wealthy.
In conclusion, this book has taught me how to become a millionaire. My perception of a millionaire is the complete opposite of the reality. I always believed all millionaires were spenders and lived the lavish lifestyles with their inherited wealth. Instead, most millionaire are frugal spenders who live well below their