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The cover of The Next Millionaire Next Door

The Next Millionaire Next Door

Thomas J. Stanley, Sarah Stanley Fallaw, 2019

Most of today's millionaires built their own wealth. New survey data shows how living below your means, ignoring what neighbors buy, and investing with discipline still turn income into wealth.

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9 parts, about 20 minutes to read.

Why read it

  • Separates income from wealth, defining net worth and an expected net worth formula for gauging how well earnings become wealth
  • Tests common myths, such as judging wealth by cars or assuming millionaires inherit it, against survey data on millionaires
  • Lays out the everyday habits behind wealth, from frugal home and car choices to acting as household CFO and studying investments

Who it is for

  • Households deciding how much house and car to buy
  • High earners with little wealth to show for their income
  • People without an inheritance aiming for financial independence

What the summary covers

  1. Preface1 min
  2. The Millionaire Next Door Is Alive and Well2 min
  3. Ignoring the Myths2 min
  4. Influences on Wealth2 min
  5. Freedom to Consume3 min
  6. Strengths for Building Wealth3 min
  7. Getting to Work3 min
  8. Investing Resources3 min
  9. Conclusion1 min

About the authors

  • Thomas J. StanleyLate author who studied America's wealthy and wrote The Millionaire Next Door
    • Born in the Bronx in 1944; father a subway car driver
    • Doctorate in business administration from the University of Georgia
    • Taught marketing at Tennessee, Georgia and Georgia State; named Outstanding Professor by Omicron Delta Kappa
    • Spent his career studying how financially successful Americans built wealth on their own
    • Was working on this book with his daughter when he died; she finished it
  • Sarah Stanley FallawFounder and president of DataPoints, a financial psychology tools company, and author of The Next Millionaire Next Door
    • PhD in Applied Psychology from the University of Georgia, 2003
    • UGA degrees AB 1998, MS 1998, PhD 2003
    • After her doctorate she moved into consulting

Read it alongside

  • Goes deeperThe Algebra of Wealth

    Stanley and Fallaw recommend a simple diversified plan for most high earners drawn to status investments; Galloway explains that a concentrated bet reaching zero leaves nothing to recover, while diversification preserves opportunities even as it limits upside.

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