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Old 12-19-2010, 08:41 AM
 
13,714 posts, read 22,843,488 times
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Quote:
Originally Posted by d-boy-80 View Post
My parents are the same. They have more than 2M but they go bonkers if they have to spend more than 1400 on the credit card every month. That's why I rarely spend money.

As for the original topic. I have rich relatives. And they have had their money inherited their position passed down. They are not frugal and don't have to be. If you are talking about those type of rich then no they are not frugal.
Maybe that is why they have $2MM.

 
Old 12-19-2010, 12:30 PM
 
1,096 posts, read 3,988,055 times
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Quote:
Originally Posted by Texas User View Post
and they do live in a middle to middle-upper class neighborhoods and drive a modest vehicle?
I'm not going to read this whole thread but yes its true to an extent. People with family money ie paris hilton aren't frugal and dont value money but the average person who built a successful small business and is a first generation millionaire probably is frugal.

There's an interesting book called the milllionaire next door thats basically about how the guy next door driving a toyota camry and living in a modest house is a millionaire while the guy in the not giant but upscale neighborhood driving the beamer is more likely to be the one in debt.

My buddy who owns/runs a business is cheap when it comes to ordering supplies, reusing things, etc but thats why his business is so profitable and why he is doing well though he's not a millionaire.
 
Old 12-19-2010, 01:43 PM
 
Location: Conejo Valley, CA
12,476 posts, read 16,976,529 times
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The "rich folks are frugal" myth makes people feel good, it makes them believe that one day they can be wealthy by just being frugal. Not going to happen.

Anyhow, out of all the wealthy folks I know only a small number are frugal, one of them recently died and his kids are now spending his millions on crap. Clearly his frugality paid off...
 
Old 12-19-2010, 02:05 PM
 
1,543 posts, read 2,554,478 times
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Quote:
Originally Posted by jlawrence01 View Post
Maybe that is why they have $2MM.
But still. They can afford to splurge every now and then.
 
Old 12-19-2010, 02:09 PM
 
24,738 posts, read 26,810,935 times
Reputation: 22733
Quote:
Originally Posted by d-boy-80 View Post
My parents are the same. They have more than 2M but they go bonkers if they have to spend more than 1400 on the credit card every month. That's why I rarely spend money.

As for the original topic. I have rich relatives. And they have had their money inherited their position passed down. They are not frugal and don't have to be. If you are talking about those type of rich then no they are not frugal.
People who inherit money tend to blow it. I think there's a pattern with wealth that goes like this: 1st generation builds it. 2nd generation just tries not to screw it up 3rd generation blows it.

There are exceptions of course. If you can pass down wealth for more than 3 generations, I guess you qualify as "Old Money".

In general, more than 80% of millionaire households made it in one generation, so only a minority inerited it.
 
Old 12-19-2010, 02:11 PM
 
1,543 posts, read 2,554,478 times
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Quote:
Originally Posted by user_id View Post
The "rich folks are frugal" myth makes people feel good, it makes them believe that one day they can be wealthy by just being frugal. Not going to happen.

Anyhow, out of all the wealthy folks I know only a small number are frugal, one of them recently died and his kids are now spending his millions on crap. Clearly his frugality paid off...
I know exactly what you mean. All this talk on how rich people are cheap and the ones who know rich people. Know they are NOT cheap. Not even close to being cheap. A lot of rich people feel that they are entitled to their lifestyle. This is my own personal belief, but I'll share it.

There are only two people that are really alike and that is people who are dependent on government welfare and born rich. They both need to have someone else footing the bill. A lot of the rich people I know, either have trusts and are not working. Or if they are working they are in executive positions because their father/mother put them there. And they feel that they are so smart and great because of what they are making and their job title. To them it doesn't matter if they were given, they feel like they earned it themselves. So they have this hyper inflated worth of themselves. Its pretty disgusting to associate with them. But they are family.
 
Old 12-19-2010, 02:14 PM
 
24,738 posts, read 26,810,935 times
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Quote:
Originally Posted by Jerksticks View Post
If you don't drink, smoke, or use much tech then you'll probably become pretty wealthy.

I feel sorry for all the people that have to buy a case of beer every weekend night, man does that stuff add up. Then you lose the next day of productivity as well. Wow. That's money that could have been reinvested in yourself down the toilet, literally.
Some people don't have those vices but still manage to blow money on other stuff. Bottom line is you have to earn at least a modest income and then siphon off a decent portion of that income in some kind of investment, whether it be stocks, bonds, real estate, or your own business (or some mix of the above).

Most people earn enough money to do this, but they are clueless about investing and don't take the time to learn. They also have a lot of trouble thinking about the long term.
 
Old 12-19-2010, 02:15 PM
 
Location: state of procrastination
3,487 posts, read 6,129,703 times
Reputation: 2883
My grandparents were fairly rich and they were still watering their plants in their large yard with their own pee. They collect it in a plastic container and then use it the next day. LOL. They grow their own fruits and vegetables.
 
Old 12-19-2010, 02:17 PM
 
1,543 posts, read 2,554,478 times
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Quote:
Originally Posted by miyu View Post
My grandparents were fairly rich and they were still watering their plants in their large yard with their own pee. They collect it in a plastic container and then use it the next day. LOL. They grow their own fruits and vegetables.
But are you rich?
 
Old 12-20-2010, 08:47 AM
 
Location: Pikesville, MD
5,229 posts, read 11,493,051 times
Reputation: 4846
Quote:
Originally Posted by mysticaltyger View Post
I think there's a pattern with wealth that goes like this: 1st generation builds it. 2nd generation just tries not to screw it up 3rd generation blows it.
You think? In fact posted on the very first page of this thread:

http://www.city-data.com/forum/11374883-post8.html

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