Paying Tribute to Thomas Stanley and His ‘Millionaire Next Door (Modesty, Thrift and Prudence)

NY Times ^ | 03/06/2015 | RON LIEBER

[Kid Shelleen]

The rich are different from you and me, though maybe not quite like we think they are.

We imagine athletes, entertainers and, more recently, entrepreneurs, when we ponder the wealthy. But the enduring lesson of the classic personal finance book, “The Millionaire Next Door,” is this: Most of the rich grow wealthy because of modesty, thrift and prudence. They live happily in starter homes. They don’t subsidize irresponsible adult children. They have an allergy to luxury automobiles.

[Kid Shelleen]

An unintentional but superb rebuttal to the "you didn't build that mentality". Behavior has always been the paramount driver of wealth creation and success. That is why I like Dave Ramsey even though I don't always agree 100% with his investment philosophy.

[tellw]

A great book. Confirms with data the Wealthy Barber.

[Arm_Bears]

Most of the rich grow wealthy because of modesty, thrift and prudence.

Left out the most important component: Hard work.

But it is the NYSlimes.

[LS]

Although I don’t use it now, for perhaps 10 years I used the Stanley/Danko “Millionaire Next Door/Millionaire Mind” books in my Business and Economic History Class at the U. of Dayton as a counter to Ehernreich’s “Nickle and Dimed.” Students liked them, got the essential part, but I found the books were pretty repetitive so I began to excerpt them and used Adam Shepard’s “Scratch Beginnings” with the Stanley/Danko stuff.

[catnipman]

Also, as they accumulate their wealth, they don’t waste tons of money eating out all the time, either.

[Gay State Conservative]

My parents were children of the Great Depression.I have reason to believe that,during the Depression,they experienced hardship at least equal to that of the "typical" American if not greater.As a direct result of his experiences my father,perhaps more than my mother,was noticeably thrifty... but not pathologically so...for his entire adult life.Although he worked hard and was quite successful he,for example,always drove Oldsmobiles and wore Timex watches in spite of the fact that he could have afforded *much* better.But while he was being thrifty *himself* he always doted on my mother and was consistently generous with my siblings and myself.

Of the many valuable lessons my Dad taught me living below your means was one of the most valuable.

My Mom and Dad,like many of their generation,*did* build that.

Are you listening,Mr Obola? Are you listening,Princess Liawatha?

[M1903A1]

A comment to the original article that I found a bit amusing was the idea that only a small businessman could save and accomplish in this manner. Given that business is seldom reliable or predictable from month to month, I would think that somebody with a smaller, but more consistently predictable, income would be able to do just as well if not better.

Ultimately, as with so many things in life, it comes down to self control and wise decisions.

[USMCPOP]

“My parents were children of the Great Depression.I have reason to believe that,during the Depression,they experienced hardship at least equal to that of the “typical” American if not greater.”

My Dad was born in 1922, oldest of 11 kids. He was thrifty but not cheap. Had Chevys and a VW bug for many years. Partnered in a business when he was about 53 and worked there until his 80th birthday. Died on his 80th birthday.

[Gay State Conservative]

Sounds like your Dad and mine might have gotten along well together.

[USMCPOP]

“Sounds like your Dad and mine might have gotten along well together. “

Perhaps so. He was very humble. Outgoing, always willing to help. He had about 45 nieces and nephews on his side of the family and was always everybody’s favorite Uncle.

My favorite depression era joke was the one about the guy who went outside on Christmas Eve and fired off his shotgun. Came in and told the kids there wouldn’t be any Christmas presents that year, as Santa committed suicide. He also had a lot of real-life compelling stories from his childhood.

[driftless2]

Excellent book. The book states that one of the key ways the rich made their money was investing in stocks and bonds.

Unfortunately, there are still a lot of people (like my now dead parents) who steadfastly refuse to use investing as a way to make money. My Dem father (who like my mother grew up during The Great Depression) sneered at any thoughts of investing in the stock market. Hopefully, young people today know better.

[gogeo]

Sure, and in his world small businesses just start and run themselves, don’t they?

[strider44]

I have nice neighbors in general, but they frequently complain about money when we’re chatting in the yard, and how expensive things are regarding their teenagers. Meanwhile they have a Mecedes SUV and a Range Rover in the driveway.

I just chuckle as I look at my Toyota Tacoma that I bought used for cash 14 years ago. I take care of it and it runs like a top.

All our books and dvd’s come free from the library. We make nice family meals at home and rarely eat out. and I’m very proud of my my older 2 sons who have been collecting and returning bottles and cans raising money to buy an XBox. They’re up to $95 hope to have enough by next Christmas. Pretty good for an 8 and 10 year-old.

I buy clothes off Ebay. Just got 4 pairs of slightly worn jeans for $25. My wife has a huge vegetable garden that feeds us for months.

Craiglist is great too. Saved tons of money on baby strollers, dog crates, toys, etc. Just on buying bulk legos alone off Craiglist has saved us hundreds.

Basic Cable only. Simple Cell phones. The list goes on and on.

[ClarenceThomasfan]

One of the greatest lessons I ever learned was(while it is good to work hard and save)the way to create real wealth is to invest. Invest in either a small business, stocks or real estate.

With interest rates at 0% today, I am glad I learned this lesson 20 years ago.