Tuesday, December 1, 2009

39. The Millionaire Next Door

I have been wanting to read this book for awhile. It is often discussed on two of the personal finance blogs that I read. One of them is The Simple Dollar. The author of this blog is a guy from Iowa who went from being a huge spender to being a guy who finds joy in frugality. I like his site and find plenty of tips that I can use in my daily life. His site is actually the site that I first read about 101 goals in 1001 days. The other site I go to is Get Rich Slowly. The author is from Oregon. He was also a huge spender that turned his habits around. He tends to write on a lot of topics that I find interesting, but he gets into numbers which tends to lose me after awhile.

Both of these guys have done reviews on the book which can be found here and here.

The biggest point that I got out of the book was that there are wealthy people and there are people that try to look like they are wealthy. Most of the truly wealthy people (those who have a net worth of over $1 million) are people that don't live the lavish lifestyles. They don't have a need to impress others with their money.

A point to take out of the book is to spend less than you earn. That's pretty obvious. Avoid trying to impress others with the things you have. I know I can't afford a lot of things I see other people with. I've learned that is ok. Paul says in Philippians 4:12 "I know what it is to be in need, and I know what it is to have plenty. I have learned the secret of being content in any and every situation, whether well fed or hungry, whether living in plenty or in want." Paul's words come from the extreme areas of having plenty and being in need. I know that I haven't really learned Paul's "secret" completely, but I understand what he means. After having kids, my list of things that I want has gone down greatly. I have most of the things that I need. The book discussed clothing, houses, and cars as being downfalls for people to not gain wealth. I'm happy with where I am at with all of these.

This was a good book to read. The formula to becoming a millionaire isn't a secret. Be wise with where you spend your money and save wisely and regularly.

1 comment:

Mom said...

I'm so glad you're getting wise at such a young age, Eric. You will be wealthy in all the important ways because of it. (You already are!)