The Millionaire Mind – Thomas Stanley (5 of 5 Franklins)

As my score indicates, I was thoroughly impressed with The Millionaire Mind. For many years Thomas Stanley was a university professor. Over the years he became increasingly interested in the core characteristics of millionaires in America. He eventually left his position, and began conducting statistical surveys of the wealthy in America. He conversed with thousands of millionaires through mail, small focus groups and one-on-one interviews.

This book compiles all of this research into one, very accessible book. What he found was that the typical millionaire in America did not exhibit an extravagant lifestyle. Again and again he calls them a cheap date. Over the course of a lifetime they have learned how to be extremely efficient with their time, energy and money. They do not waste their resources on consumer goods. They are constantly looking at the lifecycle costs over the first cost of any purchase.

One of the most important factors that he saw in these millionaires was their choice of vocation. The key to becoming economically successful, according to Thomas Stanley, is selecting a profession that allows you to make full use of your skills and talents. If you love what you do, you will be more willing to work hard. He highlights the importance of selecting a job market where you can be competitive. He talks a lot about how the American education system has a tendency to channel bright students into the medical and legal fields. Upon graduating, these talented students find themselves swept up in a wave of fierce competition. They work hard all their lives, but are unable to stand out among all the other professional elites. Stanley’s evidence shows that the economically successful members of America are more likely to find a less competitive environment in which they can easily excel. They are the big fish in a little pond.

At the end of the book Stanley breaks the millionaire mind down into eight elements:

1. They understands that America rewards hard work, integrity and focus.
2. They understand that education isn’t everything. Even though over 90% have a college education, few had outstanding grades.
3. They have courage to make informed financial risks.
4. They select a unique vocation and utilize their special skills for profit.
5. They are extremely careful about selecting a spouse.
6. They operate an economically productive household.
7. They study, search and negotiate at length before buying a home.
8. They adopt a balanced lifestyle.

This was an amazing book. There is a wealth of practical knowledge here. I’m excited to read the companion book, The Millionaire Next Door.