The self made millionaire next door

The self made millionaire next door

The Millionaire Next Door.


Many people who live in expensive homes and drive luxury cars do not actually have much wealth. Then, we discovered something even odder: Many people who have a great deal of wealth do not even live in upscale neighborhoods

Wealth is not the same as income. If you make a good income each year and spend it all, you are not getting wealthier. You are just living high. Wealth is what you accumulate, not what you spend.

Millionaires and you
Nearly one-half of our wealth is owned by 3.5 percent of our households. Most of the other households don't even come close. Many live from paycheck to paycheck. These are the people who will benefit most from this.

The millionaires we discuss in this book are financially independent. They could maintain their current lifestyle for years and years without earning even one month's pay. The large majority of these millionaires are not the descendants of the Rockefellers or Vanderbilts. More than 80 percent are ordinary people who have accumulated their wealth in one generation. They did it slowly, steadily, without signing a multimillion-dollar contract with the Yankees

The Seven Factors
Who becomes wealthy? Usually the wealthy individual is a businessman who has lived in the same town for all of his adult life. This person owns a small factory, a chain of stores, or a service company. He has married once and remains married. He lives next door to people with a fraction of his wealth. He is a compulsive saver and investor. And he has made his money on his own. Eighty percent of America's millionaires are first-generation rich.

  1. They live well below their means
  2. They allocate their time, energy and money efficiently, in ways conductive to building wealth
  3. They believe that financial independence is more important than displaying high social status
  4. Their parents did not provide economic outpatient care. Once the kid moved out the kid was responsible for one’s financial responsibilities. Damn it is a hard knock life. Don’t worry girls you can always come home and raid my refrigerator.
  5. Their adult children are economically self-sufficient. These kids do not need to come home and raid my refrigerator. They can support them self’s. Way to go mom and dad.
  6. They are proficient in targeting marketing opportunities.
  7. They chose the right occupation. It is now 2018 when technology is having a huge impact on the world. Get into being creative learn how to code, design games you should be happy in this occupation.

The Research
What have we discovered in all of our research? Mainly, that building wealth takes discipline, sacrifice, and hard work. Do you really want to become financially independent? Are you and your family willing to reorient your lifestyle to achieve this goal? Many will likely conclude they are not. If you are willing to make the necessary trade-offs of your time, energy, and consumption habits, however, you can begin building wealth and achieving financial independence. The Millionaire Next Door will start you on this journey.


The Millionaire Next Door.

About two-thirds of millionaires are self-employed. Interestingly, self-employed people make up less than 20 percent of the workers in America but account for two thirds of the millionaires. Also, three out of four millionaires who are self-employed consider ourselves to be entrepreneurs.

Our household's total annual realized (taxable) income is $131,000 (median, or 50th percentile), while our average income is $247,000. Note that those of us who have incomes in the $500,000 to $999,999 category (8 percent) and the $1 million or more category (5 percent) skew the average upward.

We have a "go-to-hell fund." In other words, we have accumulated enough wealth to live without working for ten or more years. Thus, those of us with a net worth of $1.6 million could live comfortably for more than twelve years.







  1. an abundance of valuable possessions or money:
  2. the state of being rich; material prosperity:
  3. plentiful supplies of a particular resource:
  4. a plentiful supply of a particular desirable thing:
  5. The luxury of having enough money to not need to work for an undeclared amount of time, years.




GGGents define wealthy differently. We do not define wealthy, affluent, or rich in terms of material possessions. Many people who display a high consumption lifestyle have little or no investments, appreciable assets, income-producing assets, common stocks, bonds, private businesses, oil/gas rights, or timber land. Conversely, those people whom we define as being wealthy get much more pleasure from owning substantial amounts of appreciable assets than from displaying a high-consumption lifestyle.


Given your age and income, how does your net worth match up? Where do you stand along the wealth continuum? If you are in the top quartile for wealth accumulation, you are a PAW, or prodigious accumulator of wealth. If you are in the bottom quartile, you are a UAW, or under accumulator of wealth. Are you a PAW, a UAW, or just an AAW (average accumulator of wealth)?

Most Gents who become millionaires have confidence in their own abilities.

Income is highly correlated with net worth; more than two-thirds of the millionaires in America have annual household incomes of $100,000 or more. On average, they live well below the norm for people in various income categories. They often live in self-designed environments of relative scarcity. instill their values of thrift, discipline, economic achievement, and financial independence in successive generations. These values are also typical traits among most self-made millionaires.

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