While the average biography might not fit every single millionaire, many of them do share similarities. They weave the idea of PAW versus UAW throughout the rest of the book.
It stands to reason, and their research bears it out, that most millionaires belong to the former category and not the latter. The authors then introduce the concepts of PAWs, or prodigious accumulators of wealth, and UAWs, or under-accumulators of wealth. They actually spent two or three hours being interviewed by the authors for a measly $250 or less.
They are assiduous investors but rarely sell what they are invested in. According to their research, millionaires are usually well-educated (college or better), drive older cars, and are often self-employed. Stanley and Danko begin the book with a biography of the average millionaire. What the authors show, with results from surveys and twenty years of research, is that the path to becoming wealthy usually involves "hard work, perseverance, planning, and, most of all, self-discipline." Well, that puts it into the reach of most of us! (Actually, I was holding out hope for finding the Boardwalk game piece from McDonalds' (NYSE:MCD) Monopoly game.) After all, if you earn $250,000 per year, of course you're wealthy! But what if you spend $255,000 per year? Oops. Writing that seems almost heretical, somehow. In The Millionaire Next Door, authors Thomas Stanley and William Danko have turned a career of studying how people become and stay rich into a best-selling book.Ĭontrary to popular conception and shows like Lifestyles of the Rich and Famous, those who earn large salaries are not necessarily wealthy, while those who earn modest salaries can become quite wealthy.
They're just not as flashy as you might have thought. They could be your neighbor or the dentist you go to twice a year. Jim is a Senior Analyst for Stock Advisor, Motley Fool Options, and Supernova.
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