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Old 11-19-2009, 02:48 PM
 
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Quote:
Originally Posted by Huckleberry3911948 View Post
read the book milllionaire next door.

Millionaire next door is one of my favorite reads, however, it doesn't offer the entire 360 degree view of all those who are rich. It's much more complex.

Majority of it concentrates around financial independence rather than building extreme wealth, which requires risk taking on part of those starting from scratch. It also skips the entire class of those who have inherited their wealth passed from older generations and their entire culture and lifestyle which may differ from those 1st generation rich whether they are spenders or misers.

I am not sure what everyone means by 'rich'. If you are talking about the bottom tier of rich - I call them financially independent individuals, then it is correct, frugality is pretty much a staple of many of these people's lives although not always. And it is possible to attain certain financial comforts (albeit not much riches) by saving and living frugally while making modest income, which is what the book teaches you.

But, there are different categories of rich, different tiers. You may also want to read the book "Richistan" by Robert Frank, that would make some of you sick. It is another facet of the lifestyle of extremely rich and those who are mega-millionaires. Both books offer a more complete view into the lifestyle of rich of different tiers and the level of comfort in spending one can achieve.

Overall, rich people are people, which is something I always would expect without reading any book on the topic. Some are frugal, others are spenders, yet others are misers and some are completely insane in their habits. Making generalizations that people who drive an old car or don't wear designer clothes are necessarily frugal or count every penny is also unwise. How do you know they are not driving this car to their ostentatious mansion by the beach or in the hills away from the view of others with the full staff of domestic help.

I know one wealthy contractor - a multimillionaire, who owns several race cars (each over 100K) and has a mansion in the country and a beach house, but he only drives them for leisure and out of sight of his co-workers, employees and clients. He drives a standard used subaru sedan to go to his office.

 
Old 11-19-2009, 02:52 PM
 
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I've heard how some folks get so used to saving that they cannot spend once they are 'rich'. I can see how this happens but I would say for some it's just because your priorities change - what you thought you wanted to buy once you 'were rich' suddenly are not that important after you are...
 
Old 11-19-2009, 03:09 PM
 
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Quote:
Originally Posted by Lakewooder View Post
Trusts can be constructed to restrict the next generations from blowing it all (not all at once, anyway).

I am invited to 'seminars' to sell certain funds only available to 'high net worth clients' at a well-known brokerage/investment company - it's amusing how the stock brokers and fund managers are all extremely well-dressed but the clients wear just relaxed, comfortable outfits with little jewelry or fancy watches.
it's because stock brokers or fund managers are 'working' and dressed for a work day, while the clients aren't. Also, how do you know some of these fund managers or brokers aren't the 'high networth individuals' themselves.
 
Old 11-19-2009, 03:29 PM
 
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Quote:
Originally Posted by Lakewooder View Post
I've heard how some folks get so used to saving that they cannot spend once they are 'rich'. I can see how this happens but I would say for some it's just because your priorities change - what you thought you wanted to buy once you 'were rich' suddenly are not that important after you are...
I can see how this is true for some people, that is why some still stay in their old houses even after being able to move to a nicer residence in a far nicer neighborhood. But I think it's also due to the fact that having financial independence frees you from having to run the rat race and for many people who used to do this, this is the greatest gift above and beyond acquiring some extra luxuries that they are accustomed to do without.
 
Old 11-19-2009, 05:37 PM
 
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Quote:
Originally Posted by Tallysmom View Post
We live well below our means and will soon have that "million" dollars. BUT -- I've decided that our comfort needs to come first, so I'm doing some spending.

The spending pendulum can swing from tightwad to spendthrift -- my goal is to keep it in the middle. Live well, frugally.

So the old lumpy uncomfortable pain inducing sofa and chair set (20+ years old) will be heading out the door and two new high back supportive recliners will come in. With good supportive chairs we can relax in -- that may be the relaxation we need to keep going a few more years in the physically demanding jobs we have.

And I have to learn to enjoy shopping again. There are things we need that I can find at really good prices, but I have to go out there and LOOK... instead of denying ourselves something as silly as salad plates and cereal bowls.

I've been miserly too long....
What is your reason to be miserable?
 
Old 11-19-2009, 05:44 PM
 
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Quote:
Originally Posted by KT13 View Post
Saving money is only one part of the equation. Saving money from measly wages or even upper middle class wages won't make you rich. Investing your money wisely will grow your wealth in addition to saving. Those who make it to big riches are those who also are willing to risk, e.g. have enough money for riskier enterprises to really strike it big and be willing to lose a lot and not lose your mind but get back on your feet and keep trying.
Rich people save and invest their money.

Rich people also bounce back because they can afford to lose a certain amount and not effect their lifestyle.
 
Old 11-19-2009, 06:24 PM
 
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Quote:
Originally Posted by KT13 View Post
I can bet you that it's not why their net worth is high. There are plenty of those who are not wearing x-designer and are not rich or will ever be. on the other hand there are many who do and are indeed very wealthy very high networth individuals.

I know that there are plenty of people who do wear X designers who are not rich. They are just posers and want to look rich.

The rich wear them but live below their means.
 
Old 11-19-2009, 07:23 PM
 
11,429 posts, read 19,443,622 times
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Quote:
Originally Posted by Texas User View Post
What is your reason to be miserable?
The simple answer is -- there is none. The real answer is far more complex. Once you start denying yourself stuff, it gets easier to deny yourself more. It's almost a power trip.

But it's a pretty stupid power trip, when you think about it.

And I also have rather exacting tastes. I'm not talking expensive here -- just exacting. For instance -- my salad plates. My taste -- and my husband's -- runs towards nostaglic kitsch 1950's. My KitchenAid mixer -- Ice Blue, a very light turquoise. My kitchen counter -- grey Boomerang Formica with pale pink, pale turquoise and grey boomerangs.

I looked online for well over a year for salad plates. I couldn't find anything that was fun and kitschy and colorful. That was in a coupe shape (rimless)... (which is a reason to not buy ANYTHING)

Finally my mother dragged me to a store called Tuesday Morning, and in the dishes section I found our salad plates. Vintage reproductions of ads from Kelloggs cereal boxes... Wildy colorful and totally us -- and I didn't care they weren't coupe shape.... and on sale for 2.49 a piece. I bought four. We use them CONSTANTLY.
 
Old 11-19-2009, 07:41 PM
 
12,671 posts, read 20,489,997 times
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Quote:
Originally Posted by Tallysmom View Post
The simple answer is -- there is none. The real answer is far more complex. Once you start denying yourself stuff, it gets easier to deny yourself more. It's almost a power trip.

But it's a pretty stupid power trip, when you think about it.

And I also have rather exacting tastes. I'm not talking expensive here -- just exacting. For instance -- my salad plates. My taste -- and my husband's -- runs towards nostaglic kitsch 1950's. My KitchenAid mixer -- Ice Blue, a very light turquoise. My kitchen counter -- grey Boomerang Formica with pale pink, pale turquoise and grey boomerangs.

I looked online for well over a year for salad plates. I couldn't find anything that was fun and kitschy and colorful. That was in a coupe shape (rimless)... (which is a reason to not buy ANYTHING)

Finally my mother dragged me to a store called Tuesday Morning, and in the dishes section I found our salad plates. Vintage reproductions of ads from Kelloggs cereal boxes... Wildy colorful and totally us -- and I didn't care they weren't coupe shape.... and on sale for 2.49 a piece. I bought four. We use them CONSTANTLY.

Oh yea thats true. You get used to it. How about Ebay?
 
Old 11-20-2009, 10:11 AM
 
11,429 posts, read 19,443,622 times
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Quote:
Originally Posted by Texas User View Post
Oh yea thats true. You get used to it. How about Ebay?
I tried to buy dishes on Ebay -- shipping is very high due to packing dishes for transport, and also a lot of the sellers aren't as careful as they should be in descriptions. I love 1950's abstract-y funky dinnerware -- think Jetson's rather than floral -- and a few sellers outright LIED about stuff. So with ceramics I have to SEE and handle it first.
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