The Millionaire Next Door

This revision is from 2024/02/01 17:50. You can Restore it.

The best Personal Finance book I've ever read?

The Millionaire Next Door.

1️⃣ Live below your means - Spend less than you earn. Save and invest the difference.
2️⃣ Invest a significant portion of your income - Invest at least 10% of your income in stocks every single month. When you invest periodically, you also don't have to worry about market timing.
3️⃣ Have a long-term plan - In the land of the blind, the one-eyed man is king. Set clear financial goals and develop a plan to achieve them.
4️⃣ Create passive income - If you aren't making money while you sleep, you'll work until you die.
5️⃣ Be frugal - Always avoid unnecessary expenses. Investing is all about delayed gratification.
6️⃣ Avoid debt - Debt can be very dangerous. If you're smart you don't need it and if you aren't smart you shouldn't use it. Buying a house is the only justified event to use debt.
7️⃣ Invest in yourself - Always keep learning and improve yourself. Reading as much as you possibly can is the best way to do this.