Most Americans believe "wealthy" and "high-income" are synonymous. Surprisingly, most high-income earners are not wealthy; although they earn a lot of money, they don't keep much of it. To be wealthy is not to amass material possessions, but to increase net worth by collecting appreciating assets.

The book categorizes people as PAWs or UAWs; Prodigious Accumulators of Wealth (PAWs) achieve, create wealth, become financially independent, and build from scratch. Under Accumulators of Wealth (UAWs) simply display a high-status lifestyle. Most wealthy people (PAWs) don't drive new cars, buy expensive clothes, or live in upscale neighborhoods.

I read this book because it was recommended by one of my favorite financial authors, Robert Kiyosaki, author of the Rich Dad Poor Dad series. This book explains 7 factors that contribute to wealth-building. These factors aren't set forth in a step-by-step "how to become wealthy" checklist, but are more indirectly investigated through statistics and interviews explaining the behavior of the wealthy.

The briefest formula for wealth given: be frugal, invest, and own a profitable business.

I found it interesting that (as of 1996) self-employed people (entrepreneurs and self-employed professionals) are less than 20% of the American workforce, but 33% of millionaires. Also, 80% of American millionaires are 1st-generation rich, people who earned their wealth rather than inheriting it.

I liked the comparison between budgeting and dieting or exercising. When you see a fit person eating healthy or working out, you're tempted to think "Why do they need to diet and exercise? They're in great shape!" Of course, the reason they're in shape is because of their diet and exercise regimen. The same goes for the wealthy. You might think that they don't need to budget because they're wealthy, but it's often due to their budgeting that they became wealthy.

To determine your expected net worth, multiply your age by your gross (pretax) annual income, then divide by 10.

The 7 factors of wealth

They live well below their means.
Control spending by creating an artificial economic environment of scarcity. Pay yourself first by investing at least 15% of income before spending on anything else.
Minimize realized (taxable) income, maximize unrealized (non-taxable) income.
Sacrifice high consumption today for financial independence tomorrow.
Get a mortgage less than twice your annual income.

They allocate their time, energy, and money efficiently, in ways conducive to building wealth.
Save and invest early. An early start with low income can outweigh a late start with high income.
Invest at least 15% of gross/pretax income.
Follow a budgeting and plan your finances.
Invest passively with a buy-and-hold method to reduce capital gains and turnover.

They believe that financial independence is more important than displaying high social status.
Dollars are like seeds; you can consume them or plant them to grow.

Their parents did not provide economic outpatient care.
The more dollars adult children receive, the fewer dollars they accumulate. Those forced to provide for themselves tend to be wealthier than those who are given financial aid.

Their adult children are economically self-sufficient.
Helping the financially weak generally makes them weaker.

They are proficient in targeting market opportunities.
Offer goods and services to the affluent. Although they're often frugal concerning consumer goods and services, they're not as price-sensitive about investment services, accounting services, tax advice, legal services, medical care, educational products, homes, and products and services for their businesses.

They chose the right occupation.
Sell your intellect; it's portable across industries and geographic locations.

A seriously great book. Makes you realize that the people who have a lot of things, are usually the people that don't have very much money and are generally living on credit cards, buying too many things. The people who you would never expect to have money, are usually the millionaires. It has a lot of statistics, which both of us "numbers" people loved!

Nuts ‘n bolts: the wealthiest people live frugally. If you want wealth, be frugal.


“I’m not impressed with what people own, but I am impressed with what they achieve. Always strive to be the best in your field, and don’t chase money. If you are one of the best in your field, the money will find you.”

MIllionaires can be tremendously dull; this book isn't. It is thought provoking and unexpected, if a touch dry. With so many people fascinated by glitz and bling, it is worth considering the relationship between appearing rich and being wealthy. This book has lots of great nuggets, but the upshot is that rich people often work doggedly at some fairly mundane businesses while living frugal and unpretentious lives (they generally don't divorce, move, or consume conspicuously). Certainly, this isn't a complete economics primer, nor is it a fluffy catalog of rich and famous lifestyles. But if you're truly interested in what makes the rich different, this isn't a bad place to look.

کتاب خیلی خیلی جالبی بود. کاملا به صورت آماری میاد سبک زندگی میلیونرهای آمریکا، سبک زندگی پدر مادرهاشون و سبک زندگی بچه هاشون رو بررسی میکنه. تفاوت ثروت و درامد رو به خوبی نشون میده و نشون میده که اکثر میلیونرهای آمریکا سبک زندگی شون طوریه که اصن نمیشه تشخیص داد میلیونر هستن. مثلا تعداد کمی شون هستن که تا حالا چند هزاردلار بابت یه کت یا ساعت پول دادن. خود میلیونرها رو به چند دسته تقسیم میکنه و تحلیل میکنه و خیلی تحلیل هاش جالبن. مثلا اینکه چرا مدت زمان حضور تو آمریکا با میلیونر شدن رابطه ی عکس داره به دلیل اینکه طرف بیشتر و بیشتر تو مصرف گرایی ترویج شده تو جامعه غرق شده.
ویژگی های بچه ها این ها رو هم بررسی میکنه، تاثیر هدایای نقدی روی بچه ها و اینکه اینگونه بچه ها معمولا میلیونر نمیشن
کلا خیلی کتاب باحالی بود و واقعا اینسایت های جالبی میداد با عدد و رقم. واقعا حال کردم

I can't believe I didn't write a review for this book when I first read it. TMND is one of the best books I've ever read and will go into the elite pantheon of books I won't stop recommending. The authors showcase the real millionaires in this country -- not the celebrities or heiresses or CEOs with golden parachutes that we think of. Using comprehensive data, they reveal that true millionaires and those with true wealth, are average, unassuming people like you and me. They work hard (usually for themselves), save, invest, spend wisely, and don't try to keep up with the Joneses. The people we think of as rich are little more than living paycheck to paycheck. It's an eye-opening book that will change the way you think.

Por el título, parece un libro del montón. Si digo que es un análisis sobre quiénes son y cómo se comportan los millonarios de USA, sigue sin parecer interesante, lo sé. Pero resulta que se puede aprender mucho de él: el perfil del millonario medio no se acerca ni por asomo a lo que piensa la sociedad.

El millonario medio es alguien que tiene un negocio propio, que vive en un barrio por debajo de sus posibilidades, y que cuida mucho sus gastos (coches de segunda mano, ropa en rebajas, nada de lujos). En el libro, los autores presentan y explican cómo cada uno de los típicos signos de riqueza en realidad alejan de ser millonario. Vivir en una casa cara, conducir un coche de lujo, gastar mucho dinero en ropa y viajes suponen gastos que no generan ningún tipo de rendimiento, y que en el peor de los casos se deprecian muy rápidamente.

Al final, este libro me ha hecho reflexionar sobre cosas que daba por sentadas, y estoy seguro de que me ayudará en el futuro.

Very interesting and insightful though a bit repetitive at times. Much more focused on the "what" and "how" of wealth accumulation without much at all on the "why."

I can't help but wonder how the book's principles have weathered through the last couple of decades and - in particular - the high-profile cases of tech company values growing immensely and quickly. Are there enough shareholders benefitting from such that they would change the numbers undergirding the book? And - if so - do the lifestyles and habits of those shareholders match those of the folks highlighted in the book?

Kind of a boring read. Interesting at times. The grammar was sometimes horrible and so,ermines sentence structures were confusing.

Selection Bias at it’s worst.

I drink Coke daily because Billionaire Buffett does it.
I smoke because Billionaire YY does.
I take drugs because Billionaire YX does it.

I follow the habits of the rich will I get rich now?

Plus the author leaves out all the soft factors (like having some fun with you’re hard earned wealth)

(The English review is placed beneath Russian one)

Книга из того же разряда что и «Богатый папа, бедный папа», «Думай и богатей» и так далее. Тут, как в книгах того же Карнеги, авторы делятся своими мыслями и в качестве примера приводят данные миллионеров, которых они анализировали. Да, книгу нельзя обозначить как полностью основывающуюся на мнении автора, однако я всё же считаю, что этих неназванных миллионеров всё же недостаточно, чтобы книгу можно было бы отнести к серьёзному научному труду. В принципе, это и не важно, т.к. смысл книги представляет собой классическую самопомощь.
Разумеется, не стоит ждать от книги, что после прочтения читатель сразу станет миллионером. Ждать такого очень наивно и глупо. Однако в книге есть несколько интересных советов, которые и сформировали моё отношение к данной работе. Правда нужно признаться, что мне понравилась только первая половина книги, вторая же не пришлась по душе совсем, т.к. не смотря на продолжение советов, я всё же нашёл их довольно скучными, что, в конечном счете, вылилось в то, что последнюю четверть я уже не стал читать. В общем, я сосредоточусь только на первой половине книги.
И последнее, о чём бы я хотел бы упомянуть, это год издания книги – 1995. Это было время когда интернет ещё не получил такого сильного распространения даже в самих США и поэтому одним из главных источников распространения советов по самопомощи являлись книги и журналы. Это важно, т.к. в отличие от того же Карнеги, авторы предлагают не так много советов. Другими словами, книга уже устарела. Многое из того что пишут авторы многие люди уже давно прочли в интернете или увидели на YouTube.
Итак, касаемо тем. Главная идея авторов заключается в том, чтобы научиться: 1. Не тратить деньги на лишние предметы и 2. Научить детей ценить деньги, т.е. не растрачивать их, но наоборот, инвестировать. Я хочу отметить, что это я так понял книгу. Автор, буквально таких двух предложений не писал.
Тем не менее, книга начинается с вопроса, что миллионеры не покупают дорогие костюмы, часы и пр. Сразу вспоминаются фотографии Билла Гейтса и Стива Джобса, которые внешне мало чем отличаются от обычных людей. Т.е. нет дорогих яхт, ни роскошных дорогих автомобилей (коллекций автомобилей), ни замков. Авторы пишут, что миллионеры избегают ненужных трат, без которых можно спокойно прожить. Стоит отметить, что миллионер - это всё же не Билл Гейтс, который является уникальным примером, а скорее, это человек из среднего класса который на протяжении своей жизни экономил, а сэкономленные деньги вкладывал в рынок акций и облигаций, но не с целью игры на нём, постоянно покупая и продавая акции, а исключительно покупая акции на долгосрочную перспективу (авторы это особо подчеркивают, что и заставило меня накинуть книги дополнительный бал). Собственно, книга рисует именно такого человека и поэтому следующий вопрос – кредитные карточки – кажется вполне логичным. Автор пишут, как можно уже догадаться, что миллионеры не используют кредитных карт. Совсем. В общем, мы видим складывающийся портрет обычного человека, который просто экономит и инвестирует в stock market, а также, разумеется, следит за своими тратами. Этот портрет автор рисует на протяжении первой половины книги. Ближе к середине, автор будет упоминать автодилеров, однако в этом пункте я что-то совсем не понял мысль автора.
Вторая часть книги больше адресована стилю воспитания детей, чтобы они развили в себе навыки миллионеров и тут главным вопросом будет: как богатым родителям не испортить своих детей деньгами, как не отбить у них желание экономить и инвестировать. Однако, как я сказал, данная часть книги мне показалась скучной и излишне затянутой. В принципе, всё написанное можно спокойно уместить в ролике на 10 минут на YouTube.

The book is of the same category as "Rich Dad, Poor Dad," "Think and Grow Rich," and so on. Here, as in the books of the Carnegie, the author shares his thoughts and gives an example of the data of millionaires, whom they analyzed. Yes, the book is not based entirely on the author's opinion, but I still think that these unnamed millionaires are not enough to make the book a serious scientific work. In principle, it does not matter, because the essence of the book is classic self-help.
Of course, it is not worth waiting from the book that after reading it, the reader will immediately become a millionaire. It's very naive and stupid to expect such a thing. However, the book has some interesting tips, which formed my attitude toward this work. However, I must admit that I liked only the first half of the book, but the second half did not like it at all, because, despite the continuation of the advice, I found them quite boring, which eventually led to the fact that the last quarter I did not read. Anyway, I will only focus on the first half of the book.
And the last thing I'd like to mention is the year the book was published, 1995. It was a time when the internet had not yet become so widely spread even in the USA itself, and books and magazines were one of the main sources for distributing self-help tips. It's important because, unlike the same Carnegie, the authors do not offer much advice. In other words, the book is already outdated. A lot of what the authors are writing about, many people have read it on the internet or seen it on YouTube.
So, regarding topics. The main idea of the authors is 1. Not to spend money on unnecessary items and 2. To teach children to value money, i.e., not to spend them, but on the contrary, to invest it. I want to note that this is how I understood the book. The author did not literally write such two sentences.
Nevertheless, the book begins with the idea that millionaires do not buy expensive suits, watches, and so on. It reminds me of the photos of Bill Gates and Steve Jobs, which seem to differ little from ordinary people. That is, there are no expensive yachts, no luxurious cars (car collections), no castles. The authors write that millionaires avoid unnecessary spending, without which one can live well. One should note that a millionaire is not Bill Gates, which is a unique example, but rather a man from the middle class. Who throughout his life has made savings, and the savings invested in the stock and bond market, but not for the purpose of gaming on the market, buying and selling shares, but who purchasing shares for the long term. In fact, the book draws such a person, and so the next question - credit cards - seems quite logical. The author writes, as you can already guess, that millionaires do not use credit cards. In general, we see a portrait of an ordinary man who makes savings and invests in the stock market, and, of course, keeps an eye on his spending. The author draws this portrait during the first half of the book. Closer to the middle, the author will mention the car dealers, but in this paragraph, I did not understand the author's idea.
The second part of the book is more focused on how to raise children so that they develop the skills of millionaires. And here the main question is: what wealthy parents should do to avoid spoiling their children by money, how not to discourage them from saving and investing. However, as I said, this part of the book seemed to me boring and unnecessarily long.

Some of the best ideas and strategies are simple, resistant to change as well as efficient. Thomas J. Stanley's book delivers a good perspective and insight into wealth and how modern people accumulate and, most importantly, keep it. I enjoyed seeing the confirmation of the display of status as a marker of insecurity and a wealth that won't last long, because it doesn't incorporate the same fundamental concepts that generated it in the first place. Books like these not only give me hope by making the goal seem more realistic and achievable, but make me more focused on acquiring my own wealth. A pretty good read overall.