Book Quotes: The Millionaire Next Door

  • “Wealth is more often the result of a lifestyle of hard work, perseverance, planning, and, most of all, self-discipline”
  • Multiply your age times your realized pretax annual household income from all sources except inheritance. Divide by ten. This, less any inherited wealth, is what your net worth should be.”
  • Allocating time and money in the pursuit of looking superior often has a predictable outcome: inferior economic achievement.”
  • The foundation stone of wealth accumulation is defense, and this defense should be anchored by budgeting and planning.”
  • I have always been goal-oriented. I have a clearly defined set of daily goals, weekly goals, monthly goals, annual goals, and lifetime goals.” 
  • “To build wealth, minimize your realized (taxable) income and maximize your unrealized income (wealth/capital appreciation without a cash flow).”
  • Your plan should be to sacrifice high consumption today for financial independence tomorrow.”
  • “If you’re not wealthy but want to be someday, never purchase a home that requires a mortgage that is more than twice your household’s total annual realized income.”
  • Operate your household like a productive business.”
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