U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > General Forums > Economics > Frugal Living
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
 
Old 11-25-2009, 08:21 AM
 
Location: Houston
687 posts, read 1,861,754 times
Reputation: 775

Advertisements

Quote:
Originally Posted by ferrarisnowday View Post
I do not believe frugality is salary related. If my salary suddenly doubled, it wouldn't be frugal to suddenly double my living expenses too. I could afford to, but it wouldn't be frugal.
Absolutely agree with you .

Another barometer for your valuation system -- if your salary suddenly doubles, or triples, how much impact would that have on your level of charitable giving? And would the change in charitable giving match the change in other types of expenses? Just something to think about.

I do know that what people think they will do in a hypothetical life-changing situation can differ dramatically from what they would actually do, should the life-changing situation really does in fact occur. We see this with how healthy people think about cancer clinical trials, and whether they would participate in one or not. The reality is much different when you ask patients with cancer.

 
Old 11-25-2009, 09:50 AM
 
583 posts, read 1,114,772 times
Reputation: 323
Quote:
Originally Posted by Ultrarunner View Post
Of course you're correct... you can't judge a book by it's cover... but it is a good place to start.
If this is a good place to start... then the same rule should also apply to people making assumptions when someone possessing certain luxury items is rich. We tend to be a bit biased, saying it's silly to assume someone is wealthy when they display certain luxury items. I believe that it's just as silly to assume that someone is frugal just because they 'appear' to be so. To me it's the same thing.


Quote:
Originally Posted by Ultrarunner View Post
One example is that he used Turbo Props for corp planes... one of his executives wanted corp jets and old Sam got quite upset and said something like jet-setting is not what wall mart is about... Jets are fast and make a statement and very expensive... Turbo Props are slower and efficient and slower speeds allowed Sam to scout growth patterns...
I don't know much about planes, I'll take your word and believe you that there is a huge degrade in quality between Turbo Props and Jets. The point here is, they still use private air transportation as opposed to commercial airlines and especially you don't see them flying their execs coach. For someone who is a low millionaire it would be frugal to travel coach vs. purchasing first class tickets, while for someone who is a mega-millionaire it would be frugal to fly first class on commercial airlines vs. leasing a jet or owning their own air transport. there are different scales of wealth and there are different scales of frugality.

It's frugal to travel coach, but I doubt someone who easily can afford first class ticket would fly coach frequently. I doubt someone who can easily afford 10mil mansion would succumb to living in a middle class suburb in a 200K house.


Quote:
Originally Posted by Ultrarunner View Post
I still say a person can be very frugal and extremely Rich... especially if that person earned his or her riches...
I agree that a person can be frugal and rich, however, the rich person would be frugal in a different way than a poor or middle class frugal person. Frugality caused by lack of funds often results in inconveniences and certain sacrifices often in spheres where a person may not prefer to be frugal but has to. Frugal rich person can be living way below means and still not have to encounter and deal with any such inconveniences.

For example, a frugal middle class family may decide to live in a 2 bedroom house or an apartment to save money with the 2 small kids, even though they would ideally prefer a 3 bedroom especially to allow for visiting family which would make their life easier. A wealthy person who is frugal would not make this type of choice to inconvenience their family. A frugal multi-millionaire wouldn't fly coach or take public transport from the airport to their home and waste time, such inconveniences are reserved for those of lower classes. Same goes for other necessities that a middle class frugal person would have to cut corners on, such as school choice for the kids, medical care quality, housing quality, commute, safety of neighborhood, housework, etc. A rich frugal person would have to put up with none of such sacrifices in basic domain of living and if this person voluntarily chooses to expose him/herself and the family to such struggles of poor and middle classes then to me they are simply misers. Misers are miserable people and are in no way an example to follow. There is a difference between being frugal and being a miser.

Rich people don't have same problems as poor people do, they have their own problems, but of different kind. Frugal rich people don't live a lifestyle of lower middle classes as much as we want this to be so to make ourselves feel better with out day to day struggles.
 
Old 11-25-2009, 09:56 AM
 
583 posts, read 1,114,772 times
Reputation: 323
Quote:
Originally Posted by Texas User View Post
What you pay is what you get. Not all the time though.
Absolutely agreed. For some cases majority of the value of the item could be in its name, prestige , brand. Such 'prestige' concepts don't always mean a 10-times fold increase in quality over equivalently well built but not equivalently branded items although they often may mean 10-times fold increase in price. When it comes to branding and prestige, the quality scale is not directly proportional to the cost.

But overall, there is a certain point where the quality does matter when you pay more. it applies to many things we use, from cars to quality of house building materials, to clothes, to food items, to quality of medical care.
 
Old 11-26-2009, 08:29 AM
 
4,010 posts, read 8,709,887 times
Reputation: 1581
Quote:
Originally Posted by KT13 View Post
If th.... I doubt someone who can easily afford 10mil mansion would succumb to living in a middle class suburb in a 200K house. ....
Warren Buffett, ranked the richest person in the world last year, lives in the same house that he bought in 1958 in Omaha when he didn't have much money.
 
Old 11-26-2009, 03:26 PM
 
Location: Conejo Valley, CA
12,476 posts, read 16,976,529 times
Reputation: 4304
Quote:
Originally Posted by lumbollo View Post
Warren Buffett, ranked the richest person in the world last year, lives in the same house that he bought in 1958 in Omaha when he didn't have much money.
Warren Buffet owns multiple houses. He some what recently sold his beach home here in Southern California for a few million.

The idea that Warren Buffet lives anything like "normal people" is just a myth.
 
Old 11-26-2009, 04:47 PM
 
4,010 posts, read 8,709,887 times
Reputation: 1581
Quote:
Originally Posted by user_id View Post
...
The idea that Warren Buffet lives anything like "normal people" is just a myth.
Nobody said he lives like "normal people" whatever that is. The house you were referring to was an investment. His frugal lifestyle including the fact that he lives in a rather modest home in Omaha is quite well documented.
 
Old 11-26-2009, 04:51 PM
 
Location: Conejo Valley, CA
12,476 posts, read 16,976,529 times
Reputation: 4304
Quote:
Originally Posted by lumbollo View Post
His frugal lifestyle including the fact that he lives in a rather modest home in Omaha is quite well documented.
He owns the home, but how much time does he spend in it? Probably not much.

Furthermore the $4 million dollar Laguna Beach home was not an "investment", he stayed in the home.
 
Old 11-26-2009, 04:58 PM
 
Location: southern california
55,237 posts, read 72,437,255 times
Reputation: 47456
no ---frugal would be a nice word. they get called much worse. as a rule the average american thinks they are creeps and weird -- even more strange-- the wife is more tight than the guy.
read ---- the millionaire next door.
or even better
http://www.lumbleau.com/about.asp
millionaires are not normal people normal people are low achievers.

Last edited by Huckleberry3911948; 11-26-2009 at 05:31 PM..
 
Old 11-26-2009, 10:41 PM
 
12,671 posts, read 20,499,825 times
Reputation: 2618
Quote:
Originally Posted by lumbollo View Post
Warren Buffett, ranked the richest person in the world last year, lives in the same house that he bought in 1958 in Omaha when he didn't have much money.
I am sure he has other investments. You can take the boy out of the farm but you can't take the farm out of the boy.
 
Old 11-27-2009, 01:09 AM
 
1,269 posts, read 3,322,805 times
Reputation: 792
Quote:
Is This True That Rich Folks Are Frugal?
For self-made millionaires and billionaires, yes. Warren buffet came to mind.
I heard a funny anecdote about Jim Pattison that when he passed by public phones he checked for coins left behind by careless users.

I met a man who inherited his father's wealth when he graduated from university with a business degree at the age of 21. Both he and his wife also a business graduate never had to work. He lost all his vast fortune in 6-7 years gambling at the stock markets. Fortunately, he still has a couple millions left and has moved to a cheaper country.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Closed Thread

Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > General Forums > Economics > Frugal Living
Similar Threads
Follow City-Data.com founder on our Forum or

All times are GMT -6.

2005-2018, Advameg, Inc.

City-Data.com - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35 - Top