Notes on Millionaire Next Door

The book Millionaire Next Door tells you in detail why people who love luxury goods and spend money like water can't become rich. Combined with a large number of data and icons, we can show you the thinking mode and consumption habits of American millionaires, and tell us with a lot of facts that only by working hard and investing reasonably can we have a better life.

-About the author-

Thomas, the author of this book? Stanley is a professor and marketing expert at the University of Georgia Business School. He has been studying millionaires for 30 years. 1973 began to study millionaires. 1988 published his first book, Selling to the Rich. 1996 wrote The Amazing Secret of the American Rich, and published The Millionaire Next Door in 2004. So Thomas. Dr. Stanley deserves to be an authority on millionaires.

-The golden sentences in this book-

1. What if you can't get rich through huge income like those who are really rich? Then, the only way to become a rich man is to take an extreme attitude like other millionaires, that is, to plan, save and invest wealth within the limits of income to achieve their goals.

2. The lifestyle of high consumption is a kind of temptation, imitation and comparison. High consumption is especially affected by neighbors who pursue identity and status.

Buying a bigger house is not an investment. On the contrary, it is a lifestyle choice. The bigger the house, the higher the price.

Nowadays, as economically successful adults, they often overcompensate for the material shortage in childhood.

To some extent, the more money you earn, the happier you will feel, but the more money you spend, the less happy you will be, especially when you spend money on a car.

6. Some people, especially those involved in charity, say that donating money to charity improves people's happiness.

-the core content-

1. What kind of person can be defined as a millionaire?

1. pseudo rich

They always try their best to imitate those who are really rich, who are dazzling. Most of the income of the pseudo-rich is used for consumption, such as houses, cars, clothes, yachts and exquisite golf equipment. They think that these consumptions symbolize high social status and identity, so they always buy them in buy buy.

2. Milina Il

Refers to the person whose net assets are not less than $654.38 +0 million. Net assets refer to the residual value of all family assets after deducting all debts. These wealth can be used for investment, including stocks, funds, shares of private enterprises, pensions, net living medical care, precious metals such as gold, national debt, savings, income-generating real estate and so on. Because the value of stocks, funds and real estate will change, the net assets will change with the change of market economy.

There are two kinds of millionaires. One is that they have tens of millions of assets, drive luxury cars, live in villas, eat in luxury restaurants every night, and spend more than $300 per capita. They spent a lot of money, but no matter how they spent it, these expenses only accounted for a very small part of the total wealth. They have the capital and the right to spend it like this. The proportion of these people only accounts for about 2% of American millionaires, and the total number does not exceed 80,000.

The other is the opposite of the rich who show off their wealth. They are very low-key and frugal. The house they live in is not a high-end rich area, but an ordinary apartment worth less than 300 thousand dollars, and they are also frugal in food, clothing, housing and transportation. In terms of luxury goods, they have little.

With the help of strict financial planning, rational investment and frugal life, they became rich through extreme defensive strategies. Most people don't make much money, but they still get rich. This group is mainly engineers and educators.

2. What are the distinctive consumption attitudes and habits of millionaires?

1, residence

In the United States, there are more than 4 million millionaire families, and about 28.3% of them live in houses with a market value of $300,000. None of these houses are high-end residential areas. Only 27% of the houses with a concentration of more than $654.38+00,000 live by millionaires. A large number of families are not millionaires, but high-income people.

People's thinking and behavior are particularly influenced by the environment, Thomas? Dr. Stanley believes that the most decisive factor in creating wealth is the environment around us. People living in high-end residential areas, living in residential areas with piles of rich people, will involuntarily imitate their neighbors. Buying products and services that can represent status, from cars to haircuts, from red wine to watches, the higher the cost of living, the greater the cost.

2. clothes

Next, talk about clothes worn by millionaires. Thomas? Dr. Stanley made a survey, and the average millionaire recently bought clothes at an average price of $299.5. The average multi-millionaire buys clothes at an average price of $482. Only 25% of multimillionaires spend $908 or more on clothes.

3. Other luxuries

The most popular watch for millionaires is the moderately priced seiko watch, not the Rolex worth $40,000; Rich people don't drink grey goose vodka, buy expensive wine, drive famous cars made in Europe and rarely buy yachts.

Millionaires have different psychology about money consumption.

Mr. M is a billionaire. He thinks that people who don't wear gold and silver, drive luxury cars and don't live in luxury houses are not rich. To explore deeper reasons, Thomas? Dr. Stanley studied Mr. M's growing experience. When he was young, Mr. M came from a poor family, and his parents were indifferent, indifferent and abusive to him. Through his own efforts, he became a multimillionaire. Compensate for childhood trauma by buying luxury goods.

On the contrary, Mr. n doesn't value famous brands. He is extremely frugal. Mr. N's parents are thrifty people, and they are good at saving and investing, which has a great influence on him. Therefore, he used his income for asset appreciation instead of spending it on clothes and cars.

3. Where is the millionaire's happiness reflected?

1. Most millionaires are happily married.

Most millionaires live a happy life because their marriage is happy. 9 1% married a millionaire, and their marriage lasted for 36 years. Two thirds of millionaires have never divorced. They are frugal to themselves, but generous in educating their children.

Be generous when donating money to charities and other noble causes.

Every year, they donate at least 10% of their actual income to charity. Warren Buffett promised: I will donate at least 99% of my personal wealth to charity during my lifetime or when I die. By helping others and giving back to society, he feels happy and satisfied. Thomas? Dr Stanley also found a very interesting thing. Donation to charity and wealth complement each other. The more people donate to charity, the more wealth they get, and vice versa.

3. Have a wide range of hobbies.

Those millionaires who scrimp and save also have a wide range of interests. "Pleasure" is not limited to luxury goods, and hobbies are also a kind of "pleasure". Sam walton, the founder of Wal-Mart, is a typical "millionaire next door". He went hunting in a Ford pickup truck. The shotgun is Remington 870 Weimaster air gun, which is worth about $449. A billionaire doesn't care whether the car he drives or the gun he uses is a famous brand. What he cares about is the happiness that hunting brings him.

4. Personal achievements enhance happiness.

Millionaires don't need to spend and show off their wealth, they value their achievements. Their satisfaction with life has nothing to do with the brand, but what can bring them happiness is the praise and affirmation of the industry.

Personal achievements, big or small, will improve his living standard. When what a person does is meaningful, his satisfaction will be stronger.