Insights from ‘The Millionaire Next Door’ by Thomas Stanley & William Danko

Question 1

True or False: Most millionaires in the U.S. spend extravagantly on cars and homes.

Answer 1

False

Question 2

What percentage of millionaires live in neighborhoods where non-millionaires outnumber them?

Answer 2

Three-to-one

Question 3

How long do half of American millionaires live in the same house?

Answer 3

At least 20 years

Question 4

Fill in the blank: The median net worth of a millionaire is _____ million with an annual income of ______.

Answer 4

$3.1 million; $250,000

Question 5

True or False: 50% of millionaires inherited their wealth.

Answer 5

False

Question 6

What type of car do many millionaires prefer?

Answer 6

Used vehicles, often older than two years

Question 7

According to millionaire studies, how much more do millionaires spend on cars than the average American?

Answer 7

$4,000 more

Question 8

Why might someone who appears wealthy with luxury cars and homes not actually be rich?

Answer 8

Because they often have little actual wealth saved or invested in appreciating assets

Question 9

What is the primary motivation for true millionaires, as described by a millionaire doctor?

Answer 9

Achievement over accumulation of material possessions

Question 10

What financial approach helps millionaires accumulate wealth?

Answer 10

Playing both quality offense (earning) and defense (budgeting and planning)

Question 11

Fill in the blank: Millionaires save at least ______% of their annual income.

Answer 11

0.15

Question 12

What strategy can help individuals find savings opportunities in their budget?

Answer 12

Uploading credit and debit transactions into a budgeting app to analyze discretionary spending

Question 13

How much more time do wealthy families spend on budgeting compared to non-wealthy families?

Answer 13

Twice as much time

Question 14

To increase wealth, what should individuals do as they earn more?

Answer 14

Keep spending the same and increase their savings rate gradually

Question 15

What is the average savings rate among millionaires?

Answer 15

0.2

Question 16

What percentage of millionaires are self-employed in the U.S.?

Answer 16

Less than 20% of workers, yet two-thirds of millionaires

Question 17

Name a common trait of self-employed millionaires.

Answer 17

Frugality, persistence, self-discipline, or diligent planning

Question 18

What type of businesses do self-employed millionaires often own?

Answer 18

‘Dull’ businesses with consistent demand, such as pest control or paving services

Question 19

Why is owning a ‘dull’ business advantageous for millionaires?

Answer 19

It has less competition and stable demand, even in economic downturns

Question 20

List three ways self-employed millionaires serve other wealthy individuals.

Answer 20

Create service companies for luxury products, professional practices for wealth management, or products with premium value

Question 21

Fill in the blank: Three words that profile the affluent according to Stanley and Danko are ______, ______, and ______.

Answer 21

Frugal, Frugal, Frugal