The Millionaire Next Door

frugalhomediy April 30, 2012 0

The Millionaire Next Door is a very interesting read.  I highly recommend it to anyone who wants to learn more about how to become wealthy.  This book shatters many misconceptions we have about what it takes to build wealth by looking at the lives of 500 wealthy people.  Wealth is often associated with expensive cars, yachts, and mansions.  However, in most cases the affluent can be your next door neighbors or the older couple you talk to at church.  This is the main message of the book. Many times, people who give the impression of wealth are fakes.  Their expensive tastes are financed by loans and credit cards which puts them into debt.  The people who end up building wealth are the ones who make modest purchases and are well educated in personal finance.  Many are business owners that started with nothing.  The author also address why some people who win the lottery end up filing bankruptcy shortly after. You would think that winning the lottery would be a blessing, but many lottery winners end up in worse financial shape after winning.  This is because someone who is given a vast fortune that hasn’t had to manage large amounts of money has a higher chance of losing it because their money habits have not changed.   People who have built their wealth from scratch have a very high financial IQ. If you want to learn more about how the wealthy operate I recommend reading The Millionaire Next Door.  Get it here.

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