How Motivational Is The Millionaire Next Door?

[Singuy]

So I modified my financial class to include pictures of my house and assets due to requests from students. This all happened after inviting a student to my house for a party and she literally thought I lived in a shoe box with all the frugal budgeting talk. I had another young pharmacist who once read my lecture and called it the "no fun life", now wants to hear my talk after she visited my house.

After the modification to my class, the reviews have been overwhelmingly positive. People were just mind blown after sitting through a 2 hr lecture on budgeting and debt payments. It almost changed everything since it's really giving people something to work toward to vs a life of frugal living. If anything, I think my overall talk focus more on patience and financial responsibility than frugal living.

I now wonder how motivational can the book "The Millionaire Next Door" be since it mostly focus on being frugal all your life..never get the nicer car, or the nicer house. Essentially it's like chasing a number all your life by sucking the fun out of it (not saying everyone wants nice house or cars, but the people who do are most in trouble ..so in their opinion, the book is the ultimate drag).

I see a lot of all or none here. Either you buy used honda civics all your life or you're just keeping up with the Jones. No one really focus on patience. I feel like most people wants nice things...they just don't really know how to have them in their lives the correct way.

[MonkeyMama]

I think that sounds like a wise change. It gets people's attention and it gives them motivation.

I am used to people treating me VERY different online than in person. Sure, we don't like to waste money and we don't just follow the herd. But we also bought our dream house in our mid 20s. *shrugs* I can just see that people envision that we must live in a cave or something, and I know that is why we *always* get some sort of reaction when people see our house for the first time. The reality is we have more than average. We don't live frugally just for the heck of it. We do it so that we can afford the things that are important to us. My parents were very moderate millionaire next door types, so I felt like I always saw the upside. There was never any downside. I can't say that just reading a book would have been motivating, without seeing examples, in contrast. There's too much nuance that you would just never *get*.

[msomnipotent]

It was more eye-opening than motivational for me. I never thought that some of the occupations listed would pay enough to get millionaire status. The cheap watches part made the biggest impact on me at the time, probably because I had just wasted all of my monthly spending money on a pair of shoes that I didn't like, but everyone else in the office had them. And the fact that my sister and BIL went out and bought watches from JC Penney after reading the book because they wanted to look like millionaires. That's a classic.

I think I am pretty middle-of-the-road when it comes to spending. I don't like buying used cars and don't feel a need to keep up with the Joneses. People are pretty tacky about money here. You could probably cure your class of the Joneses by meeting some of my neighbors.

[msomnipotent]

I am used to people treating me VERY different online than in person. Sure, we don't like to waste money and we don't just follow the herd. But we also bought our dream house in our mid 20s. *shrugs* I can just see that people envision that we must live in a cave or something, and I know that is why we *always* get some sort of reaction when people see our house for the first time.

Solicitors would always ask to talk to my parents when I answered the door. I have noticed that I get treated differently, too. For one, repair rates go up when they see my house. I have been scolded by door to door salesmen. "You are obviously rich and you won't buy just one magazine???". And then the neighbors assume we must be poor because we don't drive expensive cars and I wear tees and jeans most of the time. I don't do anything or go anywhere that would require better clothes, so screw it.

[TexasHusker]

I'm not that interested in the millionaire next door. A billionaire next door would be another matter.

[AJ444]

I liked "The Millionaire Next Door" but I found his other book "Stop Acting Rich And Start Acting Like a Real Millionaire" to be even better.

I found them both educational in that I had a different view of a typical millionaires consumption habits. I found them motivating in that I kept the concepts in mind when we were in debt payoff mode and it helped keep us in a frugal mindset.

I would say we live pretty close to the millionaire next door findings, a recent exception was buying a new non-luxury sedan with all of the options.

[PeggyHefferon]

I think it was an excellent book.

it's really giving people something to work toward to vs a life of frugal living

I really don't understand why you feel people can't do both?

[Singuy]

I think it was an excellent book.




I really don't understand why you feel people can't do both?

It's not that I don't think people can't do both, it's the mentality of black and white. I am a living example of someone who does both...but too many people dismiss living frugally as depriving themselves from living to their fullest.

I think people see the way of saving/reaching FI early in life/being frugal must have the MMM mindset...the free your mind from materialistic things...life is about efficiency and preserving resources. The thought of frugal individual who also spend abnormally on materialistic things just doesn't compute for many.

[bjl584]

I've read it. But the more I think about it, the more I think that it isn't really that inspirational at all. There is nothing inspiring and magical about being frugal and patient. Inspirational would be a book or course on how to become a multi-millionaire by the time you are 35 so you can enjoy your wealth and buy whatever you want while you are young and healthy.

[disneysteve]

I've never thought of the book as inspirational. I would consider it more educational and supportive of responsible financial habits. To me, inspirational would mean that after reading it, I'd be all excited about going out and getting a used car, a Timex watch, and a modest house.

There is nothing wrong with having nice things and luxury items. The problem is that too many people buy those things when a) they can't afford them and b) they're buying them for the wrong reasons. If you are carrying a $500 Coach handbag to impress others, that's a problem. If you're taking a 7-year loan so you can drive around in that shiny new car, that's a problem. The book is more about living within your means and being satisfied with what you have, not always wanting more, not wanting things just because you see them as status symbols or because other people have them. The book is about accumulating wealth and achieving financial independence.

[Shewillbemine]

I like the book and in some cases, it is indeed eye opening.

But it also takes black and white approach, implying that all REAL millionaires wear dirty jeans, drive crappy cars and live in modest houses.

I have met, worked with and worked for many millionaires (bank statements for proof). Let me tell you, it was obvious they had money.

[disneysteve]

I have met, worked with and worked for many millionaires (bank statements for proof). Let me tell you, it was obvious they had money.

The bank statement only shows one side of the balance sheet, though.

There are endless stories of celebrities, pro athletes, lottery winners, etc. who have had tons of money and ended up broke because of poor money management.

[snafu]

The book is a fast, easy read for recent graduates that haven't a clue about money management. It can function as a base for people who find a series of poor decisions has dumped them into a money pit that they are determined to climb out and need a stepped plan.

[Shewillbemine]

The bank statement only shows one side of the balance sheet, though.

There are endless stories of celebrities, pro athletes, lottery winners, etc. who have had tons of money and ended up broke because of poor money management.

None of the people I'm referring to are celebrities, athletes or lotto winners. Most are self made from modest backgrounds.

And I didn't bother to list all the financial evidence as I'm just too lazy.

One guy owns a movie theater franchise you have spent your money at.

[scfr]

I found The Millionaire Next Door to be very educational.
I found The Millionaire Mind (by the same author) to be much more motivational. It focuses more on business owners and entrepreneurs.