The Millionaire Next Door:Thomas J. Stanley

Though this book was published 20 Years ago, it still holds valuable advice. The book was centered around interviews and questionnaires filled out by people who had a net worth of at least a million dollars. Surprisingly the authors had to offer money to interest the people enough to spend time being assessed. The book divided millionaires into categories of UAWs (Under Accumulators of Wealth) and PAWs (Prodigious Accumulator of Wealth) and compared their behavior. The statistics interested me, most millionaires are business owners and out of the immigrants most are Russian. Most own conservative vehicles and the F150 is a popular choice. I liked the detail added about what happens when the money dries up or the children of UAW millionaires try to make it on their own, having become accustomed to a standard of living they cannot support. This book also talks about how expensive gift giving can do more harm than good. It talked about millionaire grandparents paying for private school or trips abroad. Putting the grandchildren in those settings where they are exposed to UAWs in turn makes them want to become consumers of expensive things and they live their lives trying to keep up with the Jones'. The advice in this book was to; spend less than you earn, avoid worrying about status- most PAWs are continuously thrifty, don't believe money is a renewable resource and save for the future. The book also provided a calculator on how to determine an "Average Accumulator of Wealth" (AAW), who has a net worth equal to one-tenth their age multiplied by their current annual income from all sources. I do see a lot of people in my generation as being UAWs, they live above their means with expensive cars, vacations, and homes and think nothing of being in debt. This book really made me wonder what the next 30 years will bring when people don't have money to retire on, will the millionaires be expected to take care of everyone else?