/biz/ - Business & Finance

[Anonymous No.17119522]

Anyone read this book? I'm a little over halfway through it, the 1996 edition. I have 2 questions.

1) How much merit does this book hold today? Everything sounds pretty accurate but I'm curious what you guys thin

2) Is it normal to find this book depressing? I guess for me it's because it hits close to home

[Anonymous No.17119543]

>>17119522

No, but interesting title. Synopsis?

[Anonymous No.17119679]

>>17119543
>Synopsis
I haven't read through all of it, but here's a link
http://www.wikisummaries.org/wiki/The_Millionaire_Next_Door

So far what I've gotten is
>Net worth is more important than income
>Most millionaires are either old, live on a tight budget where surplus of money is invested, own or have owned a very successful business, or got lucky in the stock market
>A good portion of Americans live above their means and don't save or invest their money
>Rich people tend to send their schools to law/medical school and pay for it

That's what I've gotten out of it so far. There's a ton of other stuff obviously but I'm only about 60% through it. Keep in mind though this book was written 24 years ago, so I dunno how accurate this stuff is now. Sounds pretty good for the most part.

[Anonymous No.17119691]

>>17119522
Obviously it's real. It's retardedly simple math that takes 1 minute to calculate.

But it also SHOULD teach you that being a millionaire doesn't mean shit. Congrats you're not a complete retard is the bottom line about retiring a millionaire.

[Anonymous No.17119719]

>>17119522
this book is retarded. It was a great book for exactly the boomers.
>hurr go to college, get a good job, get out of debt, invest long term in the stock market, become a millionaire.
This is worse financial advice than the shit you'll find on here

[Anonymous No.17119734]

>>17119522
Why do you find it depressing?

Also check out the book The Millionaire Mind in which the same researchers dug further by surveying and interviewing "decamillionaires" i.e. millionaires with net worths greater than $10M USD. It's even more enlightening.

[Anonymous No.17119754]

>>17119522
i havent read this but i have read many finance books and the tldr is :

earn as much as you can, dont inflate your lifestyle with it, invest wisely .. thats a universal pattern to wealth.

whats depressing about it so far?

[Anonymous No.17119755]

>>17119522

[Anonymous No.17119765]

I'm sick of self-help books that are just common sense. It's a waste of fucking time. Of course you will become a millionaire by saving and investing into boring securities over several decades, but you will have a hunchback and be fed by a tube by the time it happens.

[Anonymous No.17119784]

>>17119719
That's because it surveyed low-end millionaires. Most of them get there either by good investment choices and playing the long game or else by running a small business and it always involves fiscal responsibility. The Millionaire Mind by the same authors researched millionaires who have net worths of $10M or more. Most of them were unremarkable in school, own and run a business, and do not make their money primarily off of investments.

[Anonymous No.17119811]

>>17119691
True, I've always considered being financially free to be more important than living like a "rich" person. I guess it just makes it seem like being a millionaire is basically meaningless, unless you're super rich. Is that basically the gist?

>>17119719
I mean, a lot of it is definitely common sense, but i wouldn't say it's 'bad' financial advice. Though I'm a noob so I could be wrong.

>>17119734
>Why do you find it depressing
Two reasons; One would be I guess, because I was expecting it to be more motivational? Though I'm glad it turned out not to be. But much more so because I feel like it applies largely to my own life. I feel like this book makes me see reality, and how fucking stupid I've been acting most of my life. Thanks for the recommendation I'll check that book out next.

[Anonymous No.17119833]

>>17119765
First, most people do not understand these things. It is hardly common sense - common on /biz/ but not abroad. Second, that all depends on the rate at which one saves. If their job pays a good income and they are able to save and invest a large percentage of it the compound interest adds up more quickly than someone with a lower income who cannot afford to invest as much. The point is to have high pay and high savings at the same time.

[Anonymous No.17119846]

>>17119679
>Net worth is more important than income
>Most millionaires are either old, live on a tight budget where surplus of money is invested, own or have owned a very successful business, or got lucky in the stock market
>A good portion of Americans live above their means and don't save or invest their money
>Rich people tend to send their kids to law/medical school and pay for it
Sounds about right, except now you can add "crypto markets" to "stock markets"
The reason most people are poor is they simply will not or cannot control themselves in such a way that they build and grow actual wealth. It all goes back to the marshmallow test.

[Anonymous No.17119876]

>>17119833
No the point is to live well within your means.
Even a lower middle class family can build wealth if they live a 1950s lifestyle and play it smart. High income helps but it is not essential.

[Anonymous No.17119877]

>>17119811
Look at it like this: the book is not selling you on feel-good, inspirational, self-help stuff. It is telling you the results of a research study. If you want what it takes you do further research and look into changing your ways. That said, you got the right idea that financial independence is more important than being a millionaire. If you can passively fund your lifestyle without lifting a finger then you have well and truly made it. It's simple but not exactly easy. It comes at the cost of hard work, due diligence, or else sheer time.

[Anonymous No.17119890]

>>17119522
>How much merit does this book hold today?
Roughly the same amount. Although today, a lot more people are millionaires because they've been putting a lot of money in 401(k)s over their working life. And fewer small businesses. But that's just a recent economic trend away from small businesses, and pensions, and toward retirement accounts.

>Is it normal to find this book depressing?
Well, if your dream was to become a millionaire at 25 and live a party lifestyle? Yeah.

Honestly, it's common sense. Long-term, the people that build wealth are those that save/invest a lot, and make responsible life choices. And it helps to pass some wealth and opportunity down through generations. But most people don't like that approach - what's the point in being a millionaire if you can't live in excess?

Also, as the following posts say
>>17119691
>>17119719
Being a millionaire at 60 years old, due to a high savings/investment rate, is above-average, but it also isn't much of an accomplishment. It's not bad advice, but it won't help you become an entrepreneur or trader in the stock market. Or any other high level of accomplishment.

[Anonymous No.17119895]

>>17119754
>>17119765
That's pretty much what this book talks about so far. Just live below your means and don't be retarded with your money.

>what's depressing about it
see>>17119811

>>17119784
Yeah I'm definitely gonna check this out when I'm done with TMND. I don't find the book terrible or anything. It actually sounds pretty good if your priorities in life aren't amassing large amounts of money.

[Anonymous No.17120010]

>>17119877
Yeah this does make sense. I'm just glad I'm learning all of this now at 28 compared being older with a family.

>>17119890
So basically this is a 'how to be comfortable and retire in peach' book?

[Anonymous No.17120096]

>>17120010
>So basically this is a 'how to be comfortable and retire in peach' book?
Well, it's a bit more than that.

It's basically "how to accumulate a few million dollars, if you're an ordinary person, and you have a lifetime, and a high investment/savings rate".

If you want anything more ambitious, you'll have to look for additional techniques. You'll still want to keep the high rate of investment over a lifetime, though. That's useful for anyone who wants to get rich.

[Anonymous No.17120764]

>>17120096
>It's basically "how to accumulate a few million dollars, if you're an ordinary person, and you have a lifetime, and a high investment/savings rate".
What about people who are already poor as shit, as in 50k or even 35k or less a year in income? Are they basically shit outta luck?

[Anonymous No.17120914]

>>17120764
Saving and investing works for everyone.

[Anonymous No.17120939]

>>17120764
>>17120914
He's right. Do the math. Investing 20% of your income will leave you very wealthy in 40+ years. Regardless of your income.

[Anonymous No.17121004]

One of the things both the Millionaire mind and the Millionaire Next Door talked about stuck out to me is having good family, being religious and spending time with your community. As it turns out, living a frugal lifestyle while having a happy family does wonders compared to living a life of luxury. The most common hobbies and activities these millionaires did was prayer, going to church, entertaining friends or spending time with family. Most of those activities were free. It cost these people nothing at all!

Even though there are people who commit themselves into this frugal lifestyle and build their wealth. It becomes worthless if you don't have a solid family and community foundation.

[Anonymous No.17121652]

What's the point of being rich if you live the exact same lifestyle you would if you were middle class? If anything, people who make money and spend it on things they like understand the point of money more than people that let it stack up in a vault like it's an end in itself.

[Anonymous No.17121999]

>>17121652
Avoiding pain is better than achieving pleasure (unless you're a sado-massochist).

[Anonymous No.17122551]

>>17121999
But what if spending money does make you happy?

[Anonymous No.17122562]

>>17121004
Also yeah I have noticed that too

[Anonymous No.17123342]

>>17121652
One of the points the authors make it that people who spent all their money and don't save/invest, tend to be even more unhappy and stressed out

[Anonymous No.17123369]

>>17121652
The point is the money you accumulated and invested now gives you passive income, and you can live without worrying about work/money when you get older. You can also make the future generations of you family rich.

[Anonymous No.17123460]

>>17121652
The point of money is to use an agreed upon abstraction of value and labor in order to exchange for goods, services, and assets that let you survive without bartering. Money is not about luxury and pleasure and it never was.

[Anonymous No.17123475]

>>17119543
eat out of cans and split 2-ply toilet paper for max gains

[Anonymous No.17123498]

>>17119734
>having to define decamillionaires
god, this board is retarded

[Anonymous No.17123509]

>>17121652
Also, imagine being the first of your bloodline to start a family legacy of wealth. Your sacrifice will allow future generations to live increasingly luxurious lifestyles so long as they all sacrifice as you did. There certainly comes a time in which the things you dreamed of come cheap but first that wealth must be built and managed.

[Anonymous No.17123525]

>>17123498
Do you really trust the average Anon to parse out that word?

[Anonymous No.17123546]

Great book

[Anonymous No.17123556]

>>17123525
>spoonfeeding by default
who cares if they don't get it.

[Anonymous No.17123713]

>>17123509
The thing I don't understand is this. I get the whole point of living within your means. But where do you draw the line between penny pInching and enjoying life? Or is that just part of the budget process? Assuming you don't have a family.

[Anonymous No.17123888]

>>17123713
Part of the budgeting process. If you have a financial plan and you accumulate wealth over time every percentage point of your budget will account for more and more money. For example, if you work now, you have to budget out your annual, monthly, and weekly income. Some money pays for bills, some for gas, some for groceries, etc. As you save money and invest it as part of your budget, as you build a business, as you get promoted or as your passive income grows, etc, your annual income grows from all sources. If you budget exactly the same way every part of the budget could have more money being allocated to it and since part of your budget involves saving and investing that means it will steadily compound on itself over your life.

[Anonymous No.17124052]

>>17123888
Thanks anon

[Anonymous No.17124202]

Chris Hogan's books are the modern updates, Retire Inspired but mainly Everyday Millionaires.

[Anonymous No.17124377]

>>17119679
>>17121004
What if I had to cut all ties with my family because they consist of extremely toxic narcissists and sociopaths, don't have any friend as I spend most of my time after work on 4chan, and the closest thing to a community I have is 4chan ?
Are there books from people who recovered from this state ?

>The authors note that “there is an inverse relationship between the time spent purchasing luxury items such as cars and clothes and the time spent planning one’s financial future”. In other words, the more time someone spends buying things that look good, the less time they spend on personal finance.

Now it all makes sense. This is why I am too lazy to buy clothes and spend so much time on 4chan instead !

>They believe that financial independence is more important than displaying high social status.

I remember a lecture by my philosophy teacher in high school who explained that a car cost more in worked time than the time it was supposed to help reclaim by being faster.

[Anonymous No.17124974]

>>17124377

Sounds like you've been through a lot.

[Anonymous No.17125288]

>>17124377
Age?