The Next Millionaire Next Door
Thomas J. Stanley & Sarah Stanley Fallaw · 2018
The Next Millionaire Next Door (2018) is a book by Thomas J. Stanley & Sarah Stanley Fallaw on money & investing. A data-driven sequel showing that in a world of easy credit and social media envy, self-made wealth still comes from frugality, discipline, and quiet behaviors, not high income, inheritance, or looking rich.
Two decades of fresh data confirm the uncomfortable truth: most millionaires still look nothing like the ones on TV, and their wealth is built from behavior you can copy.
Two of the ideas you’ll keep
The Clif summary of The Next Millionaire Next Door pulls out 7 insights. Here are the first two.
- Wealth is not what you earn but what you keep. Use the **Expected Net Worth** formula (age x pretax income, divided by 10) to see whether you're a **PAW** (Prodigious Accumulator of Wealth), net worth double the expected, or a **UAW** (Under Accumulator) living close to your income.
- Income and net worth are only weakly correlated. Stanley and Fallaw show many high earners are 'income statement affluent', big salaries, near-zero balance sheets, because consumption rises to consume every raise.
The other 5 — and the full 11-minute summary — are in the app.
What’s inside: 8 chapters
The whole summary runs about 11 minutes, read or listened to.
- The Millionaire Next Door, Twenty Years Later
- Income Is Not Wealth
- The Six Behaviors That Build Wealth
- Social Indifference in the Age of Envy
- The Myth of Inherited Wealth
- The Glass Slipper Doesn't Fit
- Investing Like the Millionaire Next Door
- Building Wealth Is a Controllable Game
Finish The Next Millionaire Next Door tonight.
Read or listen to the full summary in about 11 minutes, then keep the ideas with a minute of review a day. Start with the 2-minute quiz — no card required.
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