The Millionaire Next Door

The Millionaire Next Door
The Surprising Secrets of American's Wealthy
by Thomas J. Stanley and William D. Danko

Good Review from Talia Mana:

According to authors Stanley and Danko there are seven wealth factors that set the wealthy apart from the rest of the population - and it isn't fancy cars, cigars and pinkie rings!

Check yourself off against this list and see if you've got what it takes...

1. Millionaires live well below their means
2. They allocate their time, energy and money efficiently in ways conducive to building wealth
3. Millionaires believe financial independence is more important than displaying high social status
4. Their parents didn't provide economic out-patient care, i.e. they were left to make and correct their own financial mistakes
5. Their adult children are economically self-sufficient
6. They are proficient in targeting market opportunities
7. They chose an occupation that they enjoy and that best suits their talents

Essentially the book advocates frugality and caution with finances that at times borders on miserly, but the results speak for themselves. The individuals interviewed for the book amassed wealth and held onto it through economic downturns and trained their children to be financially independent. Food for thought!

Secrets of the Millionaire Mind

Secrets of the Millionaire Mind
Mastering the Inner Game of Wealth
by T. Harv Eker (2005 HarperBusiness)

And mastering the "inner game" is exactly right. The strength of this book lies in the helpful explanation of the "Money Blueprint" that each of us has grown up with. We each have a subconscious "financial blueprint" that may or may not be set for success. (And if yours isn't "set" on alert, then reading this post will not help because you'll simply dismiss what you are reading or skip it all together.)

This is explained in Part I - how each of us is conditioned to think and act a certain way when it comes to money. Our thinking has been programmed by the attitudes and actions of people that have influenced us, typically our parents. But the good news is that we can implement some key strategies so that we can revise our mental money blueprint.

Part II examines the differences between how rich, middle-class, and poor people think. And it's true, we think differently at different socio-economic levels. The author then provides 17 attitude and action exercises that will lead to a change in our thinking and thus a subsequent change in our financial life - if we take action!

The basis for this change - any change really - is this simple formula: Thoughts lead to Feelings lead to Actions lead to Results. The challenge is to change our thoughts - and this is done by re-programming what we think and believe about wealth and money. We've already been programmed by our past. Let's take control of our thinking and re-program our minds so that our future isn't simply a repetition of the past.

Like most other books of this nature, the author's strength is practical in nature not theological. He mixes a bit of God talk in for good measure but doesn't provide a solid biblical basis for his thesis. The scriptural arguments exist, but T. Harv Eker is not biblically equipped to deal with them. This is unfortunate as many who are seeking help here from a spiritual perspective will come away with something less than satisfying. But, that being said, the principles he espouses are solid and (can be) life changing.