Audiobook Version (See below for text version)
Upon buying this book, I’d say I’ve passed one of the criterion of being a millionaire. Frugal. I bought this book at Payless Bookshop at RM13 (that’s about USD$4) when the normal retail price is about RM40 (around USD$11).
The Millionaire Next Door showcases the surprising facts of millionaires. You’d be really surprised to learn where millionaires live, where they shop, how do they invest, what cars they own, how they become rich and so on. These facts are based on thorough research by two professors, Thomas J. Stanley and William D Danko. For a person like me that usually finds numbers, percentages and comparisons boring actually found this a very interesting read, I especially love the chapters on “Economic Outpatient Care”.
Economic Outpatient Care (EOC) refers to substantial economic gifts some parents give their children and grandchildren. I’ve always wondered whether children of the rich will turn out spoilt like Paris Hilton or business smart like Ivanka Trump, The Millionaire Next Door mentions that economic outpatients do not accumulate as much wealth as their parents. The parents giving economic gifts do not have as much wealth as the parents whose children are financially independent. In this connection, the children who receives substantial economic gifts generally accumulates less wealth than those who do not or receive fewer economic gifts.
The main point of this book is that the millionaires are maybe your next door neighbour who are inconspicuous with their wealth, in fact, that’s probably why they are rich in the first place. So the next time you see a person driving the latest BMW series or has an enormous home, you can’t really judge whether they are rich till you look at their numbers. I highly recommend this book to anyone who is building wealth or who has no money sense at all ;).
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