The Millionaire Next Door

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Oftentimes when we think of a millionaire, we think of Donald Trump, LeBron James, Oscar de la Renta or Lilly Ghalichi. A millionaire is an individual whose net worth or wealth is equal to or exceeds one million units of currency. It can also be a person who owns one million units of currency in a bank or savings account. The Millionaire Next Door, written by Thomas J. Stanley and William D. Danko focuses on how net worth is a measure of how well off you are, with multiple examples in American culture of millionaires being self-made individuals who practice the simple concept of living below means. The average millionaire is a middle-aged individual, who has been married to the same spouse for several years and have lived in the same house together for majority of not all of their adult years. Danko and Stanley state that a millionaire is your average Joe that lives next door. Many of them have a “dull-normal” occupation such as farmers, welders, contractors, and pest control. The authors define the term wealthy differently than your average American or Webster’s Dictionary. Many Americans describe wealthy as having plenty of material possessions. One-way to determine whether a person is wealthy or not is by income but by their net worth. This book explains seven factors that contribute to wealth building. The seven characteristics of wealth include: living well below means; allocating time, energy, and money efficiently; believing that financial independence is more important than displaying high social status; parents do not provide economic outpatient care; adult are economically self-sufficient; proficient in targeting market opportunities; chose the right occupation. Living well below their means: They don’t have an expensive luxury car, nor do they live in an upscale neighborhood or have shopping sprees every month. Millionaires are very frugal. Frugality

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