This document provides a summary of key points from the book "The Millionaire Next Door" by Dr. Stanley. Some of the main findings are that most millionaires build their wealth over a single generation through disciplined saving and investing. They live well below their means in older, modest homes and prioritize financial independence over displaying high social status. Millionaires are typically well-educated business owners who work hard, budget carefully, and invest nearly 20% of their income annually to build wealth over time.

1. “The Millionaire Next Door”….
Name – Lucky Kirodia
Roll no. – 325
Subject – Soft Skills
Topic – Book Review

2. • Dr. Stanley, is an author, lecturer, and
researcher who has studied the affluent since
1973.
• He is the author of numerous best-selling
books about affluence.
• Dr. Stanley was formerly a professor of
marketing at Georgia State University.
Thomas J. Stanley.

3. Definition of wealth…
Webster defines wealth as:
“having an abundance of
material possessions.”
**The problem with this definition is that
many who display high consumption
lifestyles (with lots of material
possessions) have low net worth.

4. Drs. Stanley and Danko’s definition
of wealth…
1.) Individual has at least a million dollars in
net worth. (assets – liabilities = net worth)
The authors argue that this level of wealth can be
attained in one generation.
2.) Not someone who earns a million dollars
annually and spends the entire amount.

5. 5
Millionaires…
• Only 20% acquired their wealth through
an inheritance.
• 80% built their wealth in a single
generation.
• Most have wives who are
• planners and budgeters.
• Most have accumulated enough wealth
to live without working for ten or more
years.

6. Millionaires…
• Live in older homes (30+ years).
• Live in homes with an average cost of
($320,000) about 30% of $1 million.
• About half lived there for 20+ years.
• Invest nearly 20% of their realized
household income.

7. Millionaires…
• They are 6.5 times wealthier than their non-
millionaire neighbors.
• Fairly well educated… 4 out of 5 is college
educated…most hold advanced degrees.
• Most attended public schools, but 55% of
their children attend private schools.
• Spend heavily for education for their children.
• Buy high quality goods, not necessarily the
most expensive.

8. Millionaires…
• Are frugal, frugal and frugal!.
• Have discipline!
• Save, save, save .
• Live well beneath their means.
• Work between 45 and 55 hours per
week.

9. Millionaires…
• Recommend their children become
attorneys, accountants or others who
provide services to the wealthy.
• Believe that financial independence is
more important than displaying high
social status.
• Track how much they spend.

10. • Became wealthy by budgeting and
controlling expenses (and they maintain
their affluent status the same way).
• Get professional financial advice
• Review their receipts for errors before.
leaving a store.
Millionaires…

11. Millionaires…
• Develop and use a personal financial
plan.
• Have a diversified portfolio of
investments.
• Often use last year’s household
budgets to plan next year’s budget.

12. Millionaires Do Not…
• Look like media’s portrait of a
millionaire.
• Engage in “recreational shopping”.
• Spend all of what they earn.
• Let their incomes define their budgets.

13. Millionaires Do Not…
• Live lavishly and spend extravagantly.
• Hyper-consume.
• Let society or advertising influence their
spending decisions.
• Provide economic outpatient care to
their adult children.

14. Are you “Millionaire Material?”
• Building wealth takes discipline,
sacrifice and hard work!
• For most individuals this would mean
re-orienting one’s current lifestyle.

15. Personal beliefs about money…
• Most spending decisions are based on
personal values & beliefs about money.
• Understanding our beliefs helps us control
our spending.