This review covers two books by Thomas J. Stanley, PhD, namely The Millionaire Next Door: The Surprising Secrets of America’s Wealthy and Stop Acting Rich: …And Start Living Like A Real Millionaire and while both of these books are quite interesting in their own right, there is also a bit of redundancy between the two of them.

“The Millionaire Next Door” presents the research of Thomas J. Stanley, PhD and William D. Danko, PhD into the habits and behaviors of millionaires as well as high earning individuals. The book presents the concept of prodigious accumulator of wealth (PAW), average accumulator of wealth (AAW), and under accumulator of wealth (UAW). The book also defines the following formula to determine where you lie the with regards to PAW, AAW, or UAW:

Expected Net Worth = ([Age] * [Net Household Income]) / 10

If your net worth is greater than the expected net worth then congratulations! You are a PAW! There do appear to be some flaws with this formula though as someone in their mid to late twenties might have more than the expected net worth, but is still considered an UAW by Stanley and Danko. I suspect that the formula is skewed more towards individuals in their forties and later but this is not disclosed in the book.

Much of the rest of the book is devoted towards comparing the differences between PAWs and UAWs and a lot of it boils down to frugality and living below your means as opposed to at or above your means. Since this book is one of the ones that really started me down the road towards pushing for increasing my savings rates, I am biased towards it in a possible manner. However, it is a fairly interesting read and does give a good over view of what it takes to move from a UAW to an AAW to a PAW.

This stands in contrast to “Stop Acting Rich” which is effectively a continuation of “The Millionaire Next Door” and while interesting, you can easily pass by without loosing much. Much of the book is devoted to comparisons between UAWs and PAWs with regards to how they dress, what they drink, and so forth. While this is interesting and is interesting enough that it might be worth picking up at the library I would be hard pressed to recommend someone actually buy the book for the content. Much of it boils down to “Be frugal” and to not spend money to keep up with the Joneses.

The writing between the two books is quite strong and flows quite well. “Stop Acting Rich” does run a bit longer than “The Millionaire Next Door” but in all honestly “Stop Acting Rich” is effectively a continuation of “The Millionaire Next Door.” “The Millionaire Next Door” is definitively one to read if you haven’t already and “Stop Acting Rich” might be worth picking up at the library if you like “The Millionaire Next Door,” but I would be hard pressed to recommend you pick it up as well.