The Millionaire Next Door

“The Millionaire Next Door” by Thomas J. Stanley and William D. Danko explores the surprising traits and habits of America’s wealthy. The book identifies two main types of professionals:

1. Prodigious Accumulators of Wealth (PAWs): These individuals typically work in professional, administrative, and managerial occupations. They are characterized by their high net worth relative to their income. PAWs often live below their means, invest wisely, and prioritize financial independence1.
2. Under Accumulators of Wealth (UAWs): These individuals are often found in uniformed services, sales, clerical, service, and labor occupations. Despite potentially high incomes, UAWs tend to have lower net worths due to higher spending and less disciplined saving habits2.

The book emphasizes that many millionaires are self-employed, often in blue-collar fields like contracting, and they value frugality and financial discipline