The Millionaire Next Door

Thomas J. Stanley and William D. Danko found, to their surprise, that American millionaires cluster disproportionately in middle-class and blue-collar areas rather than affluent ones. Their 1996 book, built on research profiling wealthy Americans, argues that fortunes seldom come from inheritance, advanced degrees or intelligence, and more often from hard work, steady saving and spending below one's income. The authors contrast Under Accumulators of Wealth, whose net worth is low for their income, with Prodigious Accumulators, and give a rule of thumb based on age and pre-tax household income for telling the two apart. Surveys of their spending on cars, watches and clothing show modest habits, and the authors list seven shared traits, led by living below their means.

Mohnish Pabrai included it on his bookshelf list, noting its good empirical data and quick read, and Ramit Sethi put it on his list of 50 books he recommends.