Last week our family had the chance to escape town a few days.
With any extended car ride, it’s hard to come up with music or an audio book we will all agree on… So we have reverted to Adventures is Odyssey int he past (we LOVE them!). However, this time I thought it would be good to change things up and get an audiobook hubby & I would benefit from. We went with The Millionaire Next Door audiobook by Thomas J. Stanley and William D. Danko.
I wouldn’t say Little Dude “enjoyed” this audiobook – he’s way too young but it was “appropriate” for our travels in that it didn’t discuss any topic we don’t want him learning during his childhood and young adulthood.
Discussing finances is not exactly a fun topic – it is arguably the most contentious topic couples face. So it was a bold move to listen to The Millionaire Next Door audiobook basically locked up in a moving SUV with no where to escape for hours at a time. But we did it!
The concept of The Millionaire Next Door is that MOST people live WAY beyond their means. They either spend ALL they make or even MORE than what they make – depending on credit cards or cash gifts from extended family. Millionaires often grow wealthy SLOWLY, live far BELOW their means, and don’t inherit their wealth. Of course there are exceptions to the rule… but this was generally the case for nearly every millionaire they interviewed. I was impressed with the case study the author did to realize all of the trends those who accumulate wealth, in large part, characterize.
Now that I’m a stay-at-home-mom, I feel like I don’t directly contribute to our household income. When I did work, my contribution was merely a drop in the hat. This book suggests stay-at-home-wives/moms GREATLY affect the outcome a household’s financial future holds.
The book discusses that there are basically two types of people – for simplicity: spenders and savers. But the authors go into incredible detail of what this entails.
For example, high-income households can easily have virtually NO WEALTH due to their hyper-consumer lifestyle. There might be one or two spenders in the household but they really don’t keep track of their spending or plan for their future.
Another household, with a lower income, can slowly but SURELY gain WEALTH by saving a certain percentage of their income, planning and sticking to a budget and spending a certain amount of time on financially beneficial outside-of-work-activities. They are very savvy spenders and here’s where I felt compelled: they are BOTH savers.
There are formulas in the book and very specific factoids you will definitely want to read about. I don’t think any certain age-group of reader should skip this book… it’s incredibly practical for all walks of life and I believe will offer wealth-generating information for almost anyone. If we would have read this book when we first got married, I’m sure we would of had different arguments, a different financial outlook and I would have treated my seven years of being a business owner MUCH differently.
I am a spender, hubby is a saver. I have certainly felt a shift in my spending habits over the years – becoming more frugal and responsible, but this book does have some practical steps to take in order to be on the same page at your spouse and live out that gameplan.
Overall, this book got me excited about being more responsibly frugal & to not think of frugality as a de-glamorizing concept. Millionaires more often than not live a modest lifestyle, while virtually broke folks live quite extravagantly. I want to choose our reality wisely.
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