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Old 04-11-2010, 11:25 AM
 
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Quote:
Originally Posted by user_id View Post
So a guy with 5 homes, 10 luxury cars, 5 closets of designer clothing, eats out at luxury restaurants every night, etc is frugal so long as he is spending significantly less than he makes?
I'd say so. However, less than 1% of people can afford to consume at this level and still save significant sums of money.

There's a saying that goes something like "You can't afford to both live rich and be rich" that applies here. Maybe Warren Buffet & Bill Gates can, but they are a very small percentage of the rich.

 
Old 04-11-2010, 11:39 AM
 
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Quote:
Originally Posted by Texas User View Post
I think its the lower to middle class that spends a lot of money.
It isn't necessarily just the lower middle class. There are overspenders in every social class except for the rich. It's not possible to be rich if you live at or above your means.
 
Old 04-11-2010, 11:53 AM
 
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Quote:
Originally Posted by KT13 View Post
So, you think that living in an ugly apartment and inconveniencing yourself physiologically will make you rich?
Yes....if it is a means to an end. If you live in the ugly apartment for a year or two because the rent is cheap and you are saving the difference for a big down payment on a house. Or you are investing the difference in your 401K or some other investment vehicle, then yes...it will make you rich.

Now of course, this isn't to say you never upgrade your lifestyle. But the point is, you make sure you always have more money coming in than going out....and if you have to live in a cheap and ugly apartment to make sure that happens, then that's what you do.

Now, living in ugly surroundings your whole life is pretty miserable. But if you do it for a limited period of time (say, 1 to 3 years), then that seems like a reasonable choice to me.

A lot of people could set the stage for being wealthy if they lived like college students until age 30 and saved the difference. Unfortunately, too many people want to have everything they want right now....which is why the US is in the financial mess it's in.
 
Old 04-11-2010, 11:56 AM
 
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Quote:
Originally Posted by KT13 View Post
Not necessarily.. I would bet the opposite is true. Those who are misers are less likely to give to others as they pinch every penny and are willing to inconvenience themselves and their families.
The research doesn't bear this out. The rich tend to give a higher percentage of their incomes to charity.

You're confusing the difference between being frugal and being a miser. Frugal is consistently spending significantly less than you earn. Being a miser is much more extreme than that. Misers go to extremes to spend as little as possbile on absolutely everything, even when doing so hurts themselves and the people around them.

Last edited by mysticaltyger; 04-11-2010 at 12:36 PM..
 
Old 04-11-2010, 12:21 PM
 
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Quote:
Originally Posted by KT13 View Post
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.

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.
In general, I agree with what you're saying. The lower your income, the more you have to endure inconveniences and/or deal with a lower quality of life to save money whereas rich frugal people don't have to endure those things. That's especially true when it comes to housing. But I'm not sure about your other examples. I'm not sure if a multi millionaire would automatically fly first class etc.

And while those who can afford $10 million mansions might not live in 200K houses, there are a significant number of people who can afford those mostrosities who choose to live in more upper middle class areas (e.g.--maybe they live in a 400K house instead of a 200K house). Warren Buffett's house in Omaha is a good example of this. His house in Omaha is in an upper middle class, but not uber wealthy area. (Yes, yes, I know. He had/has other expensive homes, but you get the picture).

Many, (certainly not all) who can afford the $10M mansions realize that such palatial homes come with a lot of headaches and feel they're not worth the aggravation.

Last edited by mysticaltyger; 04-11-2010 at 12:34 PM..
 
Old 04-11-2010, 12:23 PM
 
Location: Harrisonburg, VA
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Well...you don't get rich by spending all your money carelessly LOL.
 
Old 04-11-2010, 02:12 PM
 
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People have to differentiate between a 'want' and 'need'.

Quote:
Originally Posted by mysticaltyger View Post
Yes....if it is a means to an end. If you live in the ugly apartment for a year or two because the rent is cheap and you are saving the difference for a big down payment on a house. Or you are investing the difference in your 401K or some other investment vehicle, then yes...it will make you rich.

Now of course, this isn't to say you never upgrade your lifestyle. But the point is, you make sure you always have more money coming in than going out....and if you have to live in a cheap and ugly apartment to make sure that happens, then that's what you do.

Now, living in ugly surroundings your whole life is pretty miserable. But if you do it for a limited period of time (say, 1 to 3 years), then that seems like a reasonable choice to me.

A lot of people could set the stage for being wealthy if they lived like college students until age 30 and saved the difference. Unfortunately, too many people want to have everything they want right now....which is why the US is in the financial mess it's in.
 
Old 04-11-2010, 02:17 PM
 
12,671 posts, read 20,502,272 times
Reputation: 2618
You can take the boy out of the farm but you can't take the farm out of the boy.
 
Old 04-13-2010, 07:51 AM
 
Location: Massachusetts
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Quote:
Originally Posted by Texas User View Post
Most safest country in the world as far as crimes go?
relatively safe but i'm not sure if it's the SAFEST in the world though. we do still get the occasional murders/rapes/robbery etc. nowhere is crime-free i guess.

but cost of living is really getting pretty expensive in singapore that's for sure. imagine a tiny public housing apartment (that's on lease for only 99yrs) in the heart of the city can cost close to USD700,000 and a regular toyota camry will easily cost over USD70,000.
 
Old 04-13-2010, 01:02 PM
 
16,092 posts, read 35,796,018 times
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Speaking of an 'ugly apartment' the difference is whether or not it's ugly to you or ugly to your friends.
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