Millionaire Next Door Analysis

The Millionaire Next Door written by Thomas J. Stanley, Ph.D. and William D. Danko, Ph.D. is a highly informative book about what it takes to become wealthy. Some of the information I knew, such as the obvious fact that you need money to be a millionaire, but some information, such as millionaires not owning big luxury items, surprised me. People become wealthy by saving money, not by living in a huge house or driving an expensive car. Most households generate a lot of money, but, because people love buying things, they live from paycheck to paycheck. Stanley and Danko say, “Building wealth requires discipline, sacrifice, and hard work” (Stanley and Danko 5). There are not too many millionaires because people are not willing to change their

Millionaires “believe that financial independence is more important than displaying high social status” (Stanley and Danko 110). The top three car brands for millionaires are Ford, Cadillac, and a Lincoln. This surprised me. I thought the millionaires, or PAWs, were the people you saw speeding buy in an expensive Rolls-Royce or Mustang. I learned that millionaires drive the same cars as ordinary people. My father currently drives a Ford and his car before that was a Cadillac. I found it interesting that a millionaire is probably driving the same car as my father right now. In addition, most millionaires buy used cars and they do not buy cars often. “Most have not purchased a car in the last two years and 25.2% have not purchased a motor vehicle in four or more years” (Stanley and Danko 112). When they do buy cars, they will search around a few local dealers for the best price on the used car they want. They will not go too far or look at too many dealers because they know that it would just waste their time. They are also not in a rush for their next car. They will take their time finding the perfect