The Millionaire Next Door

Paul FennerPersonal Finance

Hundred dolar bills scaled - investing portfolio management - The Holy Grail of Investing | Tamma Capital

According to research by Thomas Corley author of “Rich Habits: The Daily Success Habits of Wealthy Individuals,” and “Rich Kids: How To Raise Our Kids To Be Happy And Successful In Life.” it takes the average self-made millionaire 38 years for 52% and 42 years for 21% to mint their first million dollars. Only a handful, 4%, became wealthy in less than 27 years.

This Business Insider article goes more depth into the numbers that may surprise you on just how long it takes most people to earn their first million.  Along these same lines, Thomas Stanley, author of The Millionaire Next Door, recently passed away.  The book, which has sold more than three million copies since its publication in 1996 helped make Mr. Stanley a millionaire.

Ron Lieber paid tribute to Stanley in his NY Time piece stating the following;

  • We imagine athletes, entertainers and, more recently, entrepreneurs, when we ponder the wealthy. But the enduring lesson of the personal finance book is this: Most of the rich grow wealthy because of modesty, thrift and prudence. They live happily in starter homes. They don’t subsidize irresponsible adult children. They have an allergy to luxury automobiles.

It has been over 15 years since I last read this book.  However the lesson it teaches although pretty straight forward are likely very timeless.  Like all things in life especially when it comes to money, requires a unique discipline in order to achieve uncommon goals.  Achieving a net worth of $1M or any amount that allows you to achieve your life goals is a goal worth pursuing.  Just be prepared it is not for the faint of heart.