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Old 12-05-2018, 07:45 AM
 
700 posts, read 198,521 times
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Quote:
Originally Posted by LittleDolphin View Post
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.
I'm more like the "quality over quantity" camp. I just read (somewhere on the Internet) that in 1990 the average American bought 40 items of clothing and by 1999 that amount was up to 70 per year. I find that incredible; even when I was working I didn't buy that many. Unless you have unlimited closet space, you're throwing things out or giving them away, depending on whether they wore out, you're tired of them or they no longer fit. In 2016 DH and I spent $150 TOTAL on clothing. That figure for me alone was $500 last year and it's up to $1,000 this year but that includes 2 pair of Birkenstock sandals and a $500 pair of boots.

One thing I've done all my life is keep a careful eye on recurring expenses. I bought my iPhone outright (in mid-2014!) and my monthly bill on Ting is under $20, depending on usage. My gym membership (I use it daily) is down to $10/month because I get a 50% discount through my insurance. I have Netflix plus Google Fiber- no cable/dish programming at all and there's plenty to keep me entertained. I have a Nest thermostat and am diligent about turning it back when I'm out of the house for several hours and using my smartphone app to bring it back up before I head home. (It has the capability of monitoring where you are and doing that automatically but I find that creepy.)

When I think of the cell phone bill alone- my first Verizon bill was $100 because they put me in a plan with a generous data allowance. I changed that as soon as I realized how little I actually used, then switched to Ting. How much have I saved since mid-2014 by using Ting and not getting into contracts with "free" phone upgrades? Thousands. In AFTER-tax money.
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Old 12-05-2018, 07:47 AM
 
9,552 posts, read 11,430,955 times
Reputation: 12846
Quote:
Originally Posted by beach43ofus View Post
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.

Great documentary on broke athletes:

https://www.youtube.com/watch?v=1Ihm...7vfVREghzzECMY


If you like to read:
https://www.si.com/vault/2009/03/23/...letes-go-broke

Shocking stats:

• By the time they have been retired for two years, 78% of former NFL players have gone bankrupt or are under financial stress because of joblessness or divorce.

• Within five years of retirement, an estimated 60% of former NBA players are broke.

• Numerous retired MLB players have been similarly ruined, and the current economic crisis is taking a toll on some active players as well. Last month 10 current and former big leaguers--including outfielders Johnny Damon of the Yankees and Jacoby Ellsbury of the Red Sox and pitchers Mike Pelfrey of the Mets and Scott Eyre of the Phillies--discovered that at least some of their money is tied up in the $8 billion fraud allegedly perpetrated by Texas financier Robert Allen Stanford. Pelfrey told the New York Post that 99% of his fortune is frozen; Eyre admitted last month that he was broke, and the team quickly agreed to advance a portion of his $2 million salary.
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Old 12-05-2018, 07:53 AM
 
4,270 posts, read 1,757,851 times
Reputation: 13533
Quote:
Originally Posted by Motion View Post
How do you adopt a frugal lifestyle when you're rich? Say like a pro athlete.

By not buying into the false happiness of material consumption.



Hey, I get it. Buy the nice house. Get the boat. You don't have to live like an ascetic. At the same time, the quest for more and more is an emotionally empty one. If you succumb to the high of buying something, you're always needing to buy more stuff.



We're not wealthy, but we do pretty well for ourselves. However, we know really wealthy people. As in multi-generational wealth. And the thing we've noticed is how old money spends its money. They don't blow it on the latest and greatest.



Instead, they buy quality and then don't spend any more. When they do spend, it's typically on experiences rather than things, such as trips abroad. You almost never see someone from an old money family blow his or her money on a Lamborghini. That's for the people who have never had money before. Instead, they buy the Mercedes and keep it running for decades. They seem content with a kind of slightly shopworn prosperity because--get this--they don't feel a need to impress anyone.



The families with lasting wealth carefully tend their wealth, making prudent investments and creating the legal mechanisms to pass that wealth onward to the next generation.
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Old 12-05-2018, 08:00 AM
 
4,270 posts, read 1,757,851 times
Reputation: 13533
Quote:
Originally Posted by City Guy997S View Post
Great documentary on broke athletes:

https://www.youtube.com/watch?v=1Ihm...7vfVREghzzECMY


If you like to read:
https://www.si.com/vault/2009/03/23/...letes-go-broke

Shocking stats:

• By the time they have been retired for two years, 78% of former NFL players have gone bankrupt or are under financial stress because of joblessness or divorce.

• Within five years of retirement, an estimated 60% of former NBA players are broke.

• Numerous retired MLB players have been similarly ruined, and the current economic crisis is taking a toll on some active players as well. Last month 10 current and former big leaguers--including outfielders Johnny Damon of the Yankees and Jacoby Ellsbury of the Red Sox and pitchers Mike Pelfrey of the Mets and Scott Eyre of the Phillies--discovered that at least some of their money is tied up in the $8 billion fraud allegedly perpetrated by Texas financier Robert Allen Stanford. Pelfrey told the New York Post that 99% of his fortune is frozen; Eyre admitted last month that he was broke, and the team quickly agreed to advance a portion of his $2 million salary.

Give hundreds of thousands to any 22-year-old and they will likely blow it. Heck, if someone dropped a piano on my wife and I tomorrow, we have a sheaf of legal instruments designed to not give our 19-, 22-, and 23-year-old kids money right away. There are strings attached with requirements such as finishing college, working a job for a while, etc. My daughter, the oldest, would likely make prudent decisions. But my middle child would burn through the cash in about a year.

I actually advised an NFL wide receiver and his wife on this very subject about ten years ago. Someone had tried to sell him a fast food franchise. A second-rate Subway knock off. The guy was pretty heads-up, but his wife was really sharp. She refused to sign on the dotted line.

So they came to me. I looked at the prospectus for ten minutes, banged out some numbers on the calculator, and said, "There's no way you'll ever make money on this."

My advice to them was pretty simple. Live as simply as possible, for he could be injured the first day of the upcoming training camp. Then what? At the time, they were living in an apartment and still driving used cars, even after a couple of years in the pros. I thought that was prudent, because they weren't wanting kids in the near future and, who knows, he could have been traded to play for a team clear across the country.

Bart Starr, the former Packer, lives in my area. I got to know him over the years. He made a career out of advising athletes who have gigantic, unimaginable piles of money dumped in their laps. His advice was always the same. Don't lend money to family members or friends who think you have an inexhaustible supply of cash. Don't get involved in wacky business schemes. Don't make a financial move without someone prudent looking over the books. Invest in the safest, dullest stuff you can find for a while. Those who listened to him were set for life. Those who didn't because just another sad example like those that are cited in the article.
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Old 12-05-2018, 08:10 AM
 
700 posts, read 198,521 times
Reputation: 1723
Quote:
Originally Posted by MinivanDriver View Post
Bart Starr, the former Packer, lives in my area. I got to know him over the years. He made a career out of advising athletes who have gigantic, unimaginable piles of money dumped in their laps. His advice was always the same. Don't lend money to family members or friends who think you have an inexhaustible supply of cash. Don't get involved in wacky business schemes. Don't make a financial move without someone prudent looking over the books. Invest in the safest, dullest stuff you can find for a while. Those who listened to him were set for life. Those who didn't because just another sad example like those that are cited in the article.
Another good piece of advice from a celebrity: Oprah Winfrey advises the newly-rich celebrities to sign every single check personally so they know where the money is going.
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Old 12-05-2018, 11:15 AM
 
Location: NJ
23,061 posts, read 29,030,005 times
Reputation: 14941
they should sign up for mint.com and watch and categorize every expense, asset and income.
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Old 12-05-2018, 12:49 PM
 
25,034 posts, read 27,262,985 times
Reputation: 23229
Quote:
Originally Posted by MLSFan View Post
did you think a house had to be dirt cheap for it to count? that someone has to buy a house that is barebones and rebuild it up from scratch?

he may not have been frugal with his home purchase at the time, but he has also not traded to a more expensive one either. and it becomes frugal over time.

if someone drove a car for 30 years, does it matter if it was a beater car or a new car at the time of purchase to be frugal after 30 years?
As I already said, I really don't care what he paid for his house. It's the media pushing a falsely frugal image of him I don't like. They make a big deal that he paid $31,000 for his house in 1958. But that was a lot of money in 1958. The media emphasizes the $31,000 point more than the fact that that it was way back in 1958. To use an internet term, it's very click bait-y.
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Old 12-05-2018, 12:53 PM
 
25,034 posts, read 27,262,985 times
Reputation: 23229
Quote:
Originally Posted by CaptainNJ View Post
I agree that he is likely not as frugal as people make him out to be. the mental disorder thing wasnt 100% serious,
Ok, it's hard to tell on the internet whether people are being literal or not.

Quote:
Originally Posted by CaptainNJ View Post
I guess personal happiness is all that really matters. But I don't think people need to respect a billionaire who is frugal. I'm not sure what is good (or bad) about that.
Yes, I agree with all of that.
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Old 12-06-2018, 03:19 PM
 
Location: North Idaho
21,292 posts, read 26,461,767 times
Reputation: 40189
Quote:
Originally Posted by Motion View Post
............. Say like a pro athlete.
I've known several professional athletes but none of them made much more than would keep them scraping by. It's only the big superstar athletes that make huge money, and even some of the famous names aren't making much......although technically all the famous Oympic athletes are not supposed to be professionals, wink wink.

Of the superstar ball players, the overly extravagant ones make it onto the television news magazines, so lots of people hear about them but that doesn't mean they are all spendthrifts. I suspect that a large percentage of broke ball players ( and actors) weren't so much crazy extravagant as they were robbed by their agents and money managers.

Sitting way over here, it looks like all young ball players buy their mama a house first thing, but I don't really consider that to be wasteful. Some of them party too much, but if they've got any brains, they have someone else paying for the party, which would be easy enough to do.

It's easy to blow through a lot of money. How would a superstar athletes be frugal? Just like anyone else. Know where the money is going. Dont spend more than you've got, plan for the future.
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Old 12-07-2018, 07:11 AM
 
Location: N of citrus, S of decent corn
35,298 posts, read 43,524,832 times
Reputation: 58578
Quote:
Originally Posted by mathjak107 View Post
as they say the poor man pays twice!

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 .
Penny wise, pound foolish.
We buy the best quality we can afford, but we don’t buy much.
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