Get this audiobook for FREE with a trial of audible... (USA):
Get the book here (USA):
If you're interested in personal 1 to 1 online life coaching please email:
alwaysimprovingjordan@gmail.com
The Millionaire Next Door Summary (Animated) | The Surprising Secrets of America's Wealthy
“How can I be wealthy —or wealthier—” is a question many of us ask ourselves many times a day, if not all the time.
Thomas Stanley and William D. Danko asked themselves the same question, but unlike most people, the two scholars became discontent with merely thinking about the matter.
Instead, they sought out to discover who America’s Millionaires were and the strategies or secrets they had used to accumulate wealth.
After years of research, the two distilled what they had learned about wealth creation and accumulation in their bookselling book, The Millionaire Next Door: The Surprising Secrets of America’s Wealthy.
The best lesson learned from the book is that wealth accumulation is a result of the following 7 factors that they called the Denominators of Wealth:
1. Live below your means: The authors clearly illustrate how, to accumulate and build wealth, the main thing you need to concentrate on doing is adopting a lifestyle you can comfortably afford using your net income while still being able to direct substantive financial resources to goals such as saving towards retirement and investing in income-generating opportunities. Stanley notes: “Whatever your income, always live below your means.”
2. Become conscious of how you use your money, energy, and time: In various parts of the book, Stanley and Danko note that to accumulate wealth, you need to be a dynamic allocator of the three determiners of wealth creation: time, energy, and money. They note that if you use your time, energy, and money well, wealth-accumulation becomes a matter of when instead of if. In one part of the book, Thomas Stanley notes the following, “Wealth is more often the result of a lifestyle of hard work, perseverance, planning, and, most of all, self-discipline.”
3. Do not try to fit in with the Joneses: According to the authors, to create actual wealth —as opposed to only appearing wealthy while you are not—, you need to stop trying to fit in and instead adopt a lifestyle that allows you to live within your means and save because wealth creation starts with wealth accumulation, which is usually in the form of saving. When noting the importance of living within your means instead of aping the Joneses, Stanley mentions, “Many people who live in expensive homes and drive luxury cars do not actually have much wealth. Then, we discovered something even odder: Many people who have a great deal of wealth do not even live in upscale neighborhoods.”
4. Work for it: From their research, Stanley and Danko note that most wealthy people are not wealthy because of an inheritance or something of the sort, nor did they have wealthy parents, or become fortunate, no! They worked for it by budgeting, saving, adopting a sustainable lifestyle, and investing in income-generating ventures. To accumulate wealth in your life, you need to do the same thing: Work for it by creating a sustainable budgetary plan that helps you create a thriving financial life! On the importance of budgeting, the authors note, “The foundation stone of wealth accumulation is defense, and this defense should be anchored by budgeting and planning.”
5. Work towards financial independence and self-sufficiency: To become the millionaire next door, the authors of the book note that you need to save towards goals such as investing in ventures that generate a passive income so that you can become financially independent and in the end, wealthy and self-sufficient. When emphasizing the need to work towards financial independence, freedom, and self-sufficiency, Stanley notes, “if you’re not financially independent, you will spend an increasing amount of your time and energy worrying about your socioeconomic future.”
6. Invest: Although the authors advocate for savings of all kinds, they strongly advocate for saving towards investing in potent, income-generating opportunities. They note that being able to capitalize on available and arising investment opportunities makes it easier to create and accumulate wealth.
7. Your occupation matters too: The seventh denominator of wealth Stanley and Danko note in the book is that to create wealth, you need to choose the right career path, one that in addition to impassioning you, also pays well enough so that you can sustain your lifestyle and still have plenty left over for saving and investing.
If you enjoyed this video please give it a like and consider subscribing for more summaries.
Also please comment below other books you would like to see summaries of.
Thanks for watching, have a great day.
0 Comments