Common factors to becoming a millionaire – The Millionaire Next Door Book

The classic book “The Millionaire Next Door” explores 7 common factors between the millionaires around us. We all have our perceptions of what a millionaire looks like, but this perception is not accurate! We’ll explore 3 takeaways and 3 applications to your financial life to get you closer to becoming the millionaire next door yourself.

Takeaways

  • Takeaway #1 [08:41] – Living well below your means. This is accomplished “playing great defense”, having a budget, and planning for the future.
  • Takeaway #2 [15:36] – Allocate your time, energy, and money in ways that are conducive to building wealth
  • Takeaway #3 [25:03] – Raise children who are independent and do not provide “economic outpaitent care.”

Financial Applications

  1. Choose a field [33:14]
  2. Save 20% of your income [34:14]
  3. Put together a plan [36:14]

Links

Show Notes

Buy the book (affiliate link)

Indexology Exhibit 1: Most will underperform the market average

SPIVA: 2020 Active vs Passive Scorecard

Financial Samurai: Active vs Passive performance

Barrons: Hedge Fund performance

Next Up

Next week we’ll talk about the book Indistractable and how you can stop getting distracted from your money goals!

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