The Millionaire Next Door Book Review

Evan Bergo

12/7/14

Period 5

The Millionaire Next Door Book Review

I chose The Millionaire Next Door by Tom Stanley and William Danko because I wanted insight to how the wealthy people in this country live their lives and what it takes to become financially successful like them. The book first starts off by defining the term millionaire as your total net worth being over $1,000,000. Next this book gives seven reasons to why these people are wealthy “they live well below their means, they allocate their time, energy and money efficiently, in ways conducive to building wealth, they believe that financial independence is more important than displaying high social status, their parents did not provide economic outpatient care, Their adult children are economically self-sufficient, they are proficient in targeting market opportunities and they chose the right occupation. Tom and William next explain what the typical millionaire does to accumulate this wealth and defines how wealth is defined by their net worth and not by expected net worth like income. They continue by explaining that being efficient with your time and money will

The literature itself is written very clearly that any high schooler could understand and get the concept and lesson from the book but the main problem is that they can't apply what they learned for another 5-10 years when they are off in the work force needing to manage their money effectively. This book also touches on the matter of raising a family which usually doesn't happen for most people until their 30s as this book could be valuable to them as they need advice on how to raise their child financially. That is why this book is targeted towards that audience of the age of 20-30 and is not age appropriate for most people in high