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Old 12-27-2010, 05:00 PM
 
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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...
All richs folks have to be frugal in able to be rich.

If these kids are spending millions then do they have any leftover?

 
Old 12-27-2010, 05:02 PM
 
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Lottery winners would blow it too. The only folks who probably play the lottery are the ones who have no other ways to building wealth. Thats just my opinion.

Quote:
Originally Posted by mysticaltyger View Post
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 12-27-2010, 05:06 PM
 
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Quote:
Originally Posted by d-boy-80 View Post
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.

All richs folks are frugal or else how else you don't have assets. If you earn $500 million a year but spend that $500 million a year in disposable items then you are not rich. Infact the guy with the $1 leftover is more rich.
 
Old 12-27-2010, 05:11 PM
 
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Quote:
Originally Posted by henry1 View Post
most of the people i know live well beyond there means but me i do make good money but live very frugal lifestyle i can afford a large apt but live in a small studio and drive a nice car but drive a paid for smart car ..to me live when in my means and have more money put away for retirement ..

do i have vices yes i like shopping for books and dvd movies and tv show set i like along with my peanut butter i like and my rifle shooting i like to do for fun and i have my places i like to eat at a lot so then i am frugal in a lot of areas and yes i will spend money on the things i like also ..

You have the 'Smart' car? Books are in the library.
 
Old 12-27-2010, 05:15 PM
 
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Quote:
Originally Posted by Merc63 View Post
I don't know about you, but I'd rather have thanksgiving dinner with family and friends in a nice house than eat cat food alone in a run down mobile home.

Remember, that judgemental, holier-than-thou attitude can go both ways.
This is a false choice....Most people don't have to go to such extremes (at least not their whole lives) to be financially comfortable or rich in their old age.

I think your post is also a bit holier than thou.
 
Old 12-27-2010, 05:17 PM
 
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Motel 6 all the way baby!
There are only like 1,000 billionaires on the planet.


Quote:
Originally Posted by d-boy-80 View Post
Right. But the people I am talking about are not the same sort of people you are talking about. You are talking about people like my parents who are "rich". Because in investments they have close to 2M. Yeah, that's a lot of money......NOT! There are plenty of those types and the reason they have made their fortune is because they are cheap. There are many cheap people like them. But its a fine and dandy to aspire to be like them. Drive a car until it breaks completely down and buy only used cars, etc. But they do not get to enjoy the most important thing they have. And that is money.

My other family members that are rich. Get to enjoy life to its fullest. They travel around the world and stay in luxury. When my parents travel they stay at the budget hotel and rarely eat food at restaurants that are expensive. When I traveled with my rich cousin he spent 1400 dollars in one meal and the hotel we were staying at cost 300 dollars a night! That is rich and that is the rich most people will never achieve. I am not talking about the investment banker earning a high six figure but that is all that he has aside from his mansion that he is still paying for.

The "rich" you are talking about like my parents. Would never get to live like my cousins. They are high income earners but they do also have a high net worth value. And my father knows a billionaire(not too personal). But he sees that that billionaire and his sons are down to earth. They won't dress up. But the mom? Forget about it. Her husband bought her a private airplane just for herself and she has a lot of jewelry.
 
Old 12-27-2010, 05:22 PM
 
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Quote:
Originally Posted by user_id View Post
What is false, your parents don't refute anything I stated. In fact, they demonstrate what I said, you don't become wealthy by being frugal alone.
Frugal and wise investments.
 
Old 12-27-2010, 05:22 PM
 
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Quote:
Originally Posted by user_id View Post
So you should just accumulate assets and never sale and/or spend the income you derive from them? Again, what is the point? You can't take them to the grave.

Someone that has a lot of wealth but drives a piece of junk, wears old cloths, lives in a small run down house, etc, etc may as well be poor.

No need to take things to extremes. It's possible to drive an old, but well maintained car: to live in a small, but well maintained, house; to wear quality clothes with classic styling and maintain them well for 5-10 years or more, etc.

By the way, it's "clothEs" not "cloths".

I'd also add that a lot of rich people derive satisfaction from their work. If you're happy in your work and you earn a good income, having cool stuff becomes less important. It's the people who hate their jobs who feel they need to "reward" themselves with new and trendy stuff.

Last edited by mysticaltyger; 12-27-2010 at 06:49 PM..
 
Old 12-27-2010, 05:23 PM
 
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Quote:
Originally Posted by slackjaw View Post
Does the definition of frugal have a sliding scale relative to net worth?
How about spending 25% of 100% of assets? Always having 75% assets as a balance.
 
Old 12-27-2010, 05:24 PM
 
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Yup, those classic Wranglers, lol.


Quote:
Originally Posted by forest beekeeper View Post
I have known folks who live on a fraction of their earned income; and I have known folks who live on credit [spending more than they earn].

In my observation, those who 'show' wealth are generally very poor [but do not show it]. And those who wear older clothes, drive old beaters and rarely spend a dime, they are the ones whose Net Worths are often 20-years worth of their income.
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