The Millionaire Next Door: The Surprising Secrets of America's Wealthy
'The goal is to be rich, not to look rich.' This was my 'aha' moment when I was reading this book. What a deep revelation this was! Very many of us have been consumed into the abyss of wanting to look rich, rather than being rich. This is the reason more and more Americans, and the world in general, is surviving on debts that will haunt them for the rest of their lives. This book, right here, debunks that myth and reminds us that the wealthiest people often do not necessarily look rich, but are financially free. On the other hand, the middle-class population is the biggest spenders on external traits that make people appear rich yet in actual sense they are enslaved financially! Here are 3 memorable lessons I learned from this beautiful book from Thomas J. Stanley and William D. Danko.
· Live below your means
Anyone can decide to live from hand to mouth, but it takes a brave person to live below their means. It genuinely takes courage to not spend your money on fancy things like fashion and the latest phones because you are thinking about tomorrow. The truth, however, is that if you do not live below your means- especially when you are starting your wealth-building journey- you will probably never achieve the financial explorations you set out to do. This takes a lot of courage as it includes overcoming peer pressure in a world where peer pressure rules.
· Do not be overdependent- take risks
It is good to have parental support to kickstart your life, but research reveals that this support can at times be counterproductive to an individual who is seeking to kickstart his journey to wealth. Necessity is the mother of invention- therefore, not taking the first primary risk of fending for yourself will result in an overall low wealth accumulation track record. Also, this encourages people from getting out of their comfort zones and taking risks. The greater the risk, the greater the reward. The book emphasized that financial independence is the first step in a long journey of achieving wealth accumulation.
· Use your time well
We all know just how vital time is and that we all have a limited allocated portion of it. This could not be emphasized enough in this book. In an average lifetime of a human being, spanning 70 years, or 80 if one is lucky, very few people achieve true financial independence or even accumulate wealth. Most people go through life not planning or strategizing for the future. Millionaire Mindset insists that you need to use your time well, especially for personal growth. The study, read books and take care of your body. Spend time with people that you love for even in wealth, human love is very core and the most vital aspect of human life. In simple terms, let go of anything that takes up your time and limits your wealth building and focus on what is important and helps build your financial independence.
There are tones of lessons learned in the pursuit of wealth accumulation from a typical American example as revealed in this book. The authors reveal the secrets that make the pursuit of wealth seem somewhat challenging but in real sense is quite simple. Employing strategies and disciplines such as the ones above, and a tone of other lessons from the book will leave you with financial independence and wealth-building mentality that will last you throughout your lifetime- and into several generations to come. I would say this is a conclusive synopsis of the book, but books such as this need individuals to read it for themselves, from the first page to last, to explore the intricacies of true wealth accumulation.