Thirty years ago I first defined the blue collar affluent aka the millionaire next door type in a speech and paper that I delivered on behalf of the New York Stock Exchange. This began a lifetime journey of identifying and profiling the myths and realities of the rich.
I discovered that not all millionaires have high social status. In fact, those who are among the least productive in transforming their incomes into wealth are in the higher status occupations. In a 1980 national study of multimillionaires, I found that half of the millionaires in America do not live in upscale neighborhoods. In 1988, I wrote my first book, Marketing to the Affluent, which essentially discussed how to market to the “millionaire next door.” After reading it, one of my colleagues at Georgia State University, Dr. David Schwartz, author of the perennial mega bestseller, The Magic of Thinking Big, suggested that I broaden my work to appeal to a much larger general audience. I followed Dave’s advice and wrote The Millionaire Next Door published in 1996 which answered the question: Who is the typical millionaire in America? This best selling book exploded many common myths about the wealthy in America, revealing that their low-profile and frugal lifestyle were pervasive among this group.
After the success of The Millionaire Next Door, I continued my research with The Millionaire Mind (2000). In this book, I revealed the factors that millionaires, who had three times the wealth as those in The Millionaire Next Door, reported as being most important in explaining their economic success. Among those factors were integrity, discipline, social skills, a supportive spouse, leadership qualities and having a love for one’s vocation. Among the least important were luck, investing in the stock market and having high academic achievement. I responded to the numerous queries I received from women about their lack of representation in my books by writing Millionaire Women Next Door in 2004. Women in business succeed because they work harder and are more frugal than their male counterparts. Women who fail in business typically love their product but not their business.
In Stop Acting Rich: And Start Living like a Real Millionaire, I detail why so many people who are not rich hyper spend on luxuries. Often they think that collecting these expensive toys will enhance their overall satisfaction with life. But, as you will read in detail, happiness in life has little to do with what you wear, drive, eat or drink. The people with the greatest satisfaction are those who live below their means. Even during the recent peaks of income production, the residential real estate market and the bull stock market when the main survey for this book was undertaken these millionaires maintained their habits of thrift and frugality. In other words, increasing asset values did not cause the majority of wealthy people to hyperspend.
So who are these hyper spenders really emulating? They are merely mimicking the behaviors of people like themselves who are not rich but act in ways they think the economically successful people act.
6 thoughts on “Stop Acting Rich: Preface, Part I”
I’m so excited about this book, I loved The Millionaire Next Door. I wish there were a download option but at least there’s the MP3 CD.
Thank you for your work,
thanks, what i have read so far tells me that there is still hope for me to become a multi millionaire
I read “The Millionaire Next Door” twice. It is loaded with information. I’ve had it on my coffee table for years. Everyone that see’s it– want to know more!
I have never found anything in this book but TRUTH and good knowledge. If more people would take the time to read and understand, they could really prosper and maybe-just maybe-become a millionaire.
Thanks, keep ’em coming!!!
I am so excited to read this book. Despite having higher incomes than all of our friends, my husband and I live in the smallest house, drive the cheapest (paid cash for)cars, and spend the least amount of money. Our friends are always buying new TV’s, cars, and remodeling things in their homes (all of which they have to borrow money for). We are the only couple with any real savings or retirement. It is hard not to get sucked into “consumerism” when you are surrounded by people who buy things. Reading books like this remind and reassure me of the road we are on! Can’t wait to read it…thanks!
I have read The Millionaire Next door in 2007 which was given by my Mentor and and more than a father but unfortunately He left the world in 2007 only. When I started reading this Book I was in Debt but after reading this book, which ofcourse change my psychology towards money spending. How money involved emotion in day to day life. Then Finally in 2008 I discovered Dave Ramsey, A awesome personality. Today just after 3 years I am debt free and on they way to becoming rich. Thanks to Dr. Thomas Staney & Late Dr. Neeraj Datta who gave this book to me.
The title really opened my eyes even wider now, because i thought one would have to act a certain way,before other things change. I am going to purchase this book this week.