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The Millionaire Next Door

Discussion in 'Snippets of Life (Non-Fiction)' started by Kamalji, Nov 18, 2007.

  1. Kamalji

    Kamalji IL Hall of Fame

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    The Millionaire Next Door



    I have just read this wonderful book,a best seller for many years in the States, called " The Millionaire Next Door" by Thomas Stanley and William Danko.It was published in 1996.


    The authors have interviewed many millionaires of USA, to study their habits of spending, and how they have become millionaires.And it provides a different insight into the spending habits of these rich people.I am very fascinated by the book, and I would recommend this book to those who want to be rich, and very rich.But we warned.You have quiet a few sacrifices to make.So here we go.I have never done a book review,and this wont be the typical one,but will be my style, the Kamalji way, the only way that i know.



    Frugal - Most of the millionaires, are very frugal in spending.( chapter Frugal pages 27 - 69).The Authors hired a posh penthouse on Manhattan's East Side,got a few top chefs to make the best ever food possible, and had the very expensive 1970 Bordeaux wine for the guests whom they called to interview.



    The first Mr.Bud,had dull clothes, not befitting a Millionaire.A dull well-worn suit and overcoat.When asked if he would like to be served the above wine he replied " Either i drink Scotch, or beer, free or Budweiser.These expensive things are not to my taste".
    He and others who came for the interview,did not eat anything from the gourmet, even though they were clearly hungry at lunchtime.They found the food too expensive to their liking.



    These millionaires say it is unfortunate that some people judge others by their choice of foods,beverages,suitswatches,cars and such.The words that profile these affluent are FRUGAL FRUGAL FRUGAL.



    One of the millionaires, Johnny wore the most expensive suit he ever bought was for $ 399, for his 25th Wedding Anniversary,and he was thrilled to bits.He says,most custom made suits are around $ 2000, and the one he wears mostly is 14 years old,and says it was a good investment.



    As for shoes, only 1 in 4 spent $ 140 for a shoe, rest paid around $ 100 a pair.And look at the rest.Don King, the promoter of Boxing Fights, who used topromote Mike Tyson, who is bankrupt and has to pay 20 million dollors (Rupees 80 crores),purchased 110 pairs of shoes from one store,worth $ 64,100 ( 25 lakhs),in a two hour shopping frenzy, beating the previous record by Magic Johnson, who spent $ 35,000 during one visit .(Page 34)




    My comments - Look at our indian billionaires .The flashy Vijay Mallaya, now beaten by Mukesh Ambani, who gifted 240 crores plane to his wife ( rumour has it that he has gifted it to her company, so she gets the deprication benefits, a purely business decision), and today's papers say he is gifting her a building worth 700 odd crores, 27 storey or something, for a family of 4, and this on her 45th birthday.Wow.




    Compare this with our Frugal Narayan Murthy,who cleans his own bathrooms, Mrs.Murthy still cleans the dishes.And premji of Wipro,he carries his tiffin to office, and shares it with his staff , and eats their stuff.And Mrs.Murthy's foundation donates 5 crores a year to the needy.




    Around 15 years back, i was hand to mouth, and had to think twice about buying the Postman oil 15 kg tin, and used to bring a Gujerat based cheaper version oil to save a 100 bucks.I used to smoke Wills, and drink Indian Whiskey.I have not become a millionaire,but Dal Roti ka Wanda Nahin.I still have the same vices,the same old cars, my kids went to the most economical Convent Schools and colleges.No wonder God dosnt give me the millions, because he tells me " Kamal what will u do with the millions.You are not going to buy a new car, or upgrade yr whsikey to scotch, nor smoke Rothmans.So u stay where u are.He has given me enough to warm me, but not enough to Burn me.Anywhich which way i am grateful to the lord.



    Even if Mukesh Ambani were to gift me that plane which he gave his wife, i would just refuse it.The insurance at appx 3% would be around 7 crores a year, besides the upkeep, the pilots and the parking charges at the airport.I would be bankrupt the first day itself.So Aap sab ko mubarak ho this plane and all other things that u all pine for.Good luck.



    I request readers to read this book.How these rich guys, live well, but frugally,educate their kids well,but save enough to retire in comfort.A very thoughtful book, will make u think a lot regarding money, finances and how to live life.Thank you for bearing with me.



    KAMAL MAHTANI
     
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  2. Saraswathipv

    Saraswathipv IL Hall of Fame

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    Namaste Kamalji,

    It was an interesting piece. I have n't read the book that u mentioned.

    For ur info......u may browse thru the link...4shared.com - free file sharing and storage - share folder there is a good collection of books which u can download for free and read it at ur own pace.In case u have difficulties in searching for the book list there...just type "ebooks" on the search menu in that page

    I searched for the book that u mentioned. it was not available.

    Right now, I have downloaded "The monk who sold his ferrari"..

    Regards,
     
    Last edited: Nov 18, 2007
  3. Moonbeams

    Moonbeams Bronze IL'ite

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    Link not working...........
     
  4. Saraswathipv

    Saraswathipv IL Hall of Fame

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    Hi moonbeams,


    I think there was some prob with the site..in the morning I too could not open it...but now it is working. just try once again..and yes...if u clicked directly from my post...it must have not...because i put two dots(..) in the end.sorry sorry.i will edit it
    u retry this 4shared.com - free file sharing and storage - share folder
    bye
     
    Last edited: Nov 18, 2007
  5. Nivedi

    Nivedi New IL'ite

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    Kamalji,

    Thanks for the insight into the lives of millionares. I watched a show about Warren Buffet. Even he seems to be a very down-to-earth person in his life style. I also watched a show about Lakshmi Mittal. His house is so huge and filled with such expensive things...it is nothing but a palace, such an opulent life style.

    On of my friends used to work for Wipro and she would tell us of how Premji would talk very casually to the employees. He would mingle very freely and talk to them about ordinary things, not just serious corporate stuff.
     
  6. Arunarc

    Arunarc Moderator Staff Member IL Hall of Fame

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    Hello Kamalji
    Wonderful post I read that book in 2000 was very fasinated by it. But these things happen only to those, in whose fate a Million is written. We can try all possible ways but difficult to be one. But we get a lot to learn from them. Simple living high thinking.
     
  7. Srama

    Srama Finest Post Winner

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    Kamalji,

    I have had the pleasure of reading this book a couple of times. I am of the opinion that richness/wealth are all relative terms - how rich is being rich anyways, unless we keep a point and look at it from that pespective ( I am richer than so and so etc). As you have pointed out yourself in your life - that you have done best at what you have/had and wouldn't even consider keeping the plane, as long as we all look at what we have and learn contentment and look at the joys in life, I am sure we will all feel like millionaires. I am not saying we should not aspire to be rich - each one of us should. Only when wealth is created, can it be shared. But frugality and contentment play an important role and when we start with that mindset, in no time we find our selves richer than where we started.

    Just to quote one of my favorite financial advisors Suze Orman, "Check your shoe rack, if you have more than 5 pairs at any given point of time, you are over spending" - frugality and contentment well spoken I think!
    Thank you for reminding of that book and your review, I might go and browse through it again.




     
  8. So Sure

    So Sure Senior IL'ite

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    hi Kamal,

    I read this book some time back. In fact my husband has a collection of them - 'The millionaire next door', 'Rich dad poor dad', 'Who moved my cheese', 'blink', 'Freakonomics', 'The leader in you', 'Pscycho-Cybernetics (this is a very old book), I'm all into fiction and classic fiction. But he make it a point to make me read these books. :spin

    You can add these to your list of books. These are only a few I remember now. I'll update you if and when I across any other.

    Regards,
    Sharada
     
  9. Sriniketan

    Sriniketan IL Hall of Fame

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    .He has given me enough to warm me, but not enough to Burn me.Anywhich which way i am grateful to the lord.


    I liked these lines.
    It clearly states who you are, but also reminds me that 'one who is contend with what he has, is a millionaire'.

    These are just myMy 2cents

    sriniketan
     
  10. Sindhurao

    Sindhurao Gold IL'ite

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    Dear Kamalji:

    That made wonderful reading. I haven't read 'Millionaire next Door' but I read an email a few years ago about how to become a millionaire, frugal living and conservative saving seemed to be the key!

    Whenever, Warren Buffet is asked his secret to being billionaire that he is now, he says nothing is achieved overnight. It takes years to build your cash reserves. He puts his money into Coca Cola but has never invested in internet companies - a lot of them went bust in 1999-2001.

    I particularly liked the line ...enough to warm me, but not enough to burn me.
    I sure would like to have that contentment.

    Thanks for the lovely review. Makes the book one of the must reads!

    Sindhu
     

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