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its funny to me when people manufacture their own ideal rich person and speak as if they are talking about actual rich people. do you really think most rich people are re-soling their shoes? do you really believe that rich people arent buying new cars? you may think that its great for rich people to do this and i am sure many are, but many arent also.
I think there are people with lots of financial resources who fall into both the category you describe and the one Oregon describes. My FIL has a life-long avocation that puts him into contact with a lot of extremely wealthy people, who share a particular hobby, ranging from old to new money. He calls the crowd you're describing the "gold chain gang" and the term is not meant to be flattering.
I hardly think he has a mental disorder. He had a 2nd house in Laguana Beach for many years. He lives in an upper middle class area of Omaha. And another poster said, he flies on private/chartered flights or something like that. He's very frugal for his net worth, but not nearly as much as the media makes him out to be.
i agree that he is likely not as frugal as people make him out to be. the mental disorder thing wasnt 100% serious, i guess personal happiness is all that really matters. but i dont think people need to respect a billionaire who is frugal. im not sure what is good (or bad) about that.
I think there are people with lots of financial resources who fall into both the category you describe and the one Oregon describes. My FIL has a life-long avocation that puts him into contact with a lot of extremely wealthy people, who share a particular hobby, ranging from old to new money. He calls the crowd you're describing the "gold chain gang" and the term is not meant to be flattering.
that isnt really what i am describing. i try to not be negatively judgmental and i try not to lump people in broad categories where not enough of a % fit in order to justify the grouping. i think there are a bunch of subgroups among the "rich" that will make any generalization not useful. but honestly resoling shoes seems like a very small subset of rich people, its just not convenient vs buying a new pair when a new pair isnt so expensive to them.
How do you adopt a frugal lifestyle when you're rich? Say like a pro athlete.
I don't know, but I can tell you that a professional football player used to live right around the corner from me in middle class neighborhood, and his house was not much bigger than mine. He led a very quiet life, so I imagine he might meet your definition of frugal, but I certainly don't know the details of his spending habits other than that his house was nothing special. He moved a few years ago, and photos of the home's interior showed nothing particularly extravagant.
I am frugal in some ways, not at all in others. I am 66, haven't been to a hairdresser since 1972 (can't believe what some people pay for hair maintenance), never had a manicure, never owned a gym membership, never had an expensive phone, never wanted a time-share (I've had friends who do/did), never paid for more than basic cable, and never traveled abroad.
But I've had people ask me 'how' I afford so many vacations. I save up beforehand for most of them, and all my travel is domestic and spent in no-frills hotels. We also like to eat out a few times a month. It's all a trade-off but I think some of my friends living on higher income have tighter budgets than we do, and I don't think it's because they are naturally miserly people.
Just save 20% of what you make, pay this first like an automatic deduction, max out 401K, 529, healthcare savings accounts,
do not borrow any money at any time from anyone. Be very careful what legal docs you sign.
Do not have a full service stock broker. Use a discounter like Vanguard, Schwab, ect, and they will assign a free advisor to you once you meet their threshhold which is typically $1M invested. The fees on their funds cost much less, and you'll have a free personal advisor.
Some of the wealthiest people I know or have read about are frugal in their material possessions.
They may buy a good pair of shoes and wear them for years, having them re-soled as needed. Or they may buy a well-made car and drive it for years, maintaining it well.
They may have area rugs that are worn and rather thread-bare, but the carpets are Orientals with lovely, though faded, colors and designs.
With them, it's quality over quantity.
With the less affluent, it's often quantity over quality.
we tried to save money on tripods for our cameras since our passion is photography . so we bought less then we should have . now we have to buy the ones we should have sprung for in the first place as we found to many short comings in the ones we bought .
What is rich? I consider American top 1%'ers in net worth to be rich. That's $8.4M-$10.3M in net worth depending upon which source you believe.
The top 1% don't have to be frugal, they just cannot be irresponsible and crack their nestegg. They should be able to live off the investments $8M-$10M throws off quite comfortably.
I hate to see young pro athletes wind up broke at 40 years of age. Happens all the time.
How do you adopt a frugal lifestyle when you're rich? Say like a pro athlete.
There is a guy (NFL) that drives an old Mazda to work everyday. I think it was his high school/college car but the peer pressure is certainly there to overspend on a flashy car. https://www.cnbc.com/2017/10/17/dall...ght-for-2.html
I know a former pro athlete, he played for 20 years but came from a very blue collar background. He laughed and said if he came home with a new red Corvette his dad would have punched him in the face! In his 20 year career, he bought ONE new car and it was an Acura. He did some type of promotional deal with the dealership and the car was part of the payment. I think he kept it 10-12 years.
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