The Millionaire Next Door

[NickCats]

I just started reading this book last week :

http://www.washingtonpost.com/wp-srv/style/longterm/books/chap1/millionairenextdoor.htm

If any of you are looking for some winter reading material, I would definitely recommend picking it up !

Speaking of millionaires, anyone catch this in the news :

Yesterday, it was announced that Microsoft had bought a 1.6% stake in Facebook for $240 million, valuing the social utility site at roughly $15 billion. The deal makes geeky twenty-three-year-old Mark Zuckerberg, at least on paper, worth $5 billion. Talk about revenge of the nerds.

http://news.aol.com/newsbloggers/2007/10/25/is-mark-zuckerberg-the-new-bill-gates/?ncid=NWS00010000000001

Nick

[bmussatti]

Nick, I have heard a lot about this book. The first chapter was very fun to read. Thanks for the link.

[Perfectlap]

Big Hat no Cattle...LOL

That's a great book that I hope my cheap skate father never gets a hold of...
We will never hear the end of it.

This year I received one of those Social Security statements that lists how much money you have made each year of your life on this planet. Holy cow... Makes you take a hard look at your investing and spending.

[70Sixter]

I remember reading The Millionaire Next Door at my stockbroker's house whilest holed up during Hurricane Bonnie. Some lessons really stuck.

One vignette describes at couple who bought a used BMW after serious research. This was an example of value according to the author. For whom I gained a great deal of respect.

The other vehicle I remember being covered for value was the Ford F-150.

I guess I expected him to recommend keeping your father's old Chevrolet sedan until it fell apart.

[bmussatti]

Big Hat no Cattle...LOL

That's a great book that I hope my cheap skate father never gets a hold of...
We will never hear the end of it.

This year I received one of those Social Security statements that lists how much money you have made each year of your life on this planet. Holy cow... Makes you take a hard look at your investing and spending.

PL...Big Hat no Cattle is also a favorite line of Bush Jr. and Bush Sr.! Jr. used it during his Republican Convention a few years ago.

[JackG]

"Big Hat no Cattle"

Would that be... a poser? :chicken:

:D

[bmussatti]

"Big Hat no Cattle"

Would that be... a poser? :chicken:

:D

Yes, in Texan! :)

[djomlas]

while i was reading a book called Fooled by Randomness by Taleb he mentioned it, and i started reading it as well.
if you like that book read talebs book, hes hilarious and he doesn't quite like rich people...but in a weird way. hard to explain, he really admits it and talks about the same issues as that book, but not as much obviously, its about stockmarket and how people just explode from it.
good read.

[xxxalexxxx]

i sure as well wish i was that mark kid who made facebook haha i read about that today as well

[RandallNeighbour]

My uncle was the millionaire next door. Most of my friends are the same way. I'm not a millionaire (yet) but my wife read the book and said we're well on our way as we practice most of the things shared in that book.

I guess I should probably read it to see what she's talking about.

... and that's why I have an 11 year old boxster and I don't have a new 987!

[Perfectlap]

by the way regarding the Facebook 20 gaziilion dollar valuation.
those guys are out of their minds. Facebook represent one generation, XYZ or whatever, next generation will say Facebook is wack and it will become today's Microsoft or Yahoo. Not cool enough.
This shows Microsoft's desperation too. But Bill's making strong early moves in China while everyone else is sleeping. That's the play to watch...Bill will line his bird cage with that Facebook money, its peanuts to him...Even though he's no longer the richest guy on the block.

[djomlas]

i think that facebook/myspace is a fad and will go away i hope.
i dont have it, and dont wish to have it, but money can be made looks like...enough to get some and when it goes away ure too rich hehe

[xxxalexxxx]

myspace is crap as its always been but i think facebook is a great way to network/keep in touch with friends etc...(most people from 18-25) have a facebook now) but yea..sure its not for like 30 yrs olds etc (it would be weird to see my parents on that or soemthing lol) but i think its great for younger people who r in college or early alums... like i said its a great way to network while its still private so freaks arent looking at your profile and/or sending u spam and so on...i actually landed the best job i could ask for through facebook so im all for it haha

i think its something that'll stick around because younger generations are all about wireless networking...a lot of stuff is done online now...and facebook is in a way just like these forums we all participate in...eventually when im older (im 23) i wont be on facebook anymore but younger generations will take my place.

anyway sorry this way way off topic just wanted to share that facebook is great lol

[meerzee]

My uncle was the millionaire next door. Most of my friends are the same way. I'm not a millionaire (yet) but my wife read the book and said we're well on our way as we practice most of the things shared in that book.

I guess I should probably read it to see what she's talking about.

... and that's why I have an 11 year old boxster and I don't have a new 987!

Well, some of my family are the millionaires next door....but not in the context of the book, they are bold, brazen and live in houses that are way in excess, but I say it is their life and they can actually afford it, so I don't really care at the end of the day. I applaud their honest success and hard work. I am slightly disillusioned by their reluctance to help (not financially) other members of the family when needed, but that is another story. :D We are also well on our way as we have zero debt, everything paid off, only buy what we can purchase straight out and save as much $ as possible. We could live in a house that cost 5x what we live in now, but for what, for 2 people? How much space and stuff do 2 people need? :rolleyes: Like you, I could have gone out and spent 4x what I did on my 986, but why?

Life is all about setting good boundaries and understanding what a wonderful tool wealth can be if put into the right hands.... :cheers:

[YellowJacket]

while i was reading a book called Fooled by Randomness by Taleb he mentioned it, and i started reading it as well.
if you like that book read talebs book, hes hilarious and he doesn't quite like rich people...but in a weird way.

DJ, have you read Taleb's newest book "The Black Swan"? I actually just finished it last night. It's actually not a great book, but does take the Fooled By Randomness concept one step farther. Oh, and by the way, I don't know if I would say that Taleb doesn't like rich people -- he's a hedge fund manager and a Dean at UMass and has a Wharton MBA. He's not exactly doing too badly. :)

Regarding the original post, I strive to live the "Millionaire Next Door" lifestyle, and am not doing too badly, but I have my weak spots (travel, for example). My wife's parents are the ultimate millionaire next door couple, though. They have accomplished more than 99% of people on probably a lower quartile income. Very inspiring.