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.
By the way, Ramen noodles, butter noodles, grilled cheese sandwiches and tomato soup was a regular diet. Staying out of the mall, not buying stupid little trinkets, paying bills on time, not taking on more debt, get rid of (bad debt), not listening to those who told me I can't ... I don't know, I was determined and found ways. I stopped giving my money away to make others rich. Learning the tax code, paying for professional advise, looking for ways my money can work for me...
Now, if I want a big juicy T-Bone steak and lobster, not a problem.
I used to think small amounts didn't matter but I was wrong. I was poor with a lot of debt and could have easily taken the road of many who lost HOPE, hated success and blamed everyone else. Instead I looked at what "I" was doing wrong, planned my exit strategy and took action. Now debt free with emergency fund, reguarly contributing to retirement and investing. I may not be a billionaire but life has changed dramatically. Before this change I didn't have $400 to my name. After my changing, choices opened up, less stress, and now have good financial habits and life keeps getting better and better.
I now see the difference between the rich vs poor thinking. Losing the poor mans mindset is the first step. I've posted a few things that rang true in my experience but people with the poor mans mindset attack. The poor think they know it all and everyone else is to blame. It's like they want a magic wand or look to politicians to save them but I've learned government is not your friend. Unfortunately the poor will keep listening to politicians that only want their vote, they'll keep doing more of the same as if it was working before.
There is so much about money and about the government the poor can not see.
that's great that you were able to find a way in life to build a little security. yes everyone should be able to do they same. I hear what you are saying about a mindset, however there are millions of hard working americans who don't make much money to begin with. it is almost impossible to put away cash to save when the car breaks down one week, the next the tire blows and the next your hours at work get cut. not to mention the kids need new clothes for school.
yes anyone that maintains a job, doesn't get fired and doesn't have a series of bad breaks, year after year can build a bit of a nest egg, however that isn't reality for a lot of hard working people.
Funny, the Horatio Alger routine is doing the exact opposite of killing me. Swimming laps in the sunshine at my winter home, soaking up the vitamin D and getting exercise, eating well, without the stress of money worries....I think I'll live a long time, which is good, because I want to work until I'm 92--having that much fun in my Horatio Alger business and life.
I've been poor, I've been broke, I've been buried in debt. This is better. One would think more people would try it.
I'd say it's more like "the average person dreams of being rich, but doesn't want to do the things it takes to become rich."
My godfather was a guy with a middle- to upper-middle-class income who lived for 40 years like a lower-middle-class guy and put the rest away in investments. He lived in a house well below his means, drove used Buicks, eschewed extravagant vacations, and was generally frugal in every way, even as his portfolio value grew beyond seven figures. When he finally retired, he bought a near-mansion home and his-n-hers Jaguars. People look at him now and say "I'd like to be like that when I retire." But few have the discipline to do what he did to get there.
Most people don't recognize the value of compounding, and of those who do many don't realize it soon enough in life. $500 a month invested at 7% for 40 years would yield a nest-egg of over $1.3 million dollars. If you wait until you're 45 and do the same for only 20 years, you'll only have a little over $250,000.
Please don't take this personally, it is not a criticism of your godfather or a repudiation of his life philosophy ... just a different point of view.
I admire the life path my father set out more than the person who had "a middle- to upper-middle class income who lived for 40 years like a lower-middle-class guy" and never took "extravagant vacations" or only drove used cars. My Dad earned a middle-to-upper-middle-class income and he lived like a middle-to-upper-middle-class person. He lived within his means, was never in debt (except for the mortgage on the first house) drove nice but not 'luxury' cars and we took very nice vacations - to Mexico, the Caribbean, Europe, Israel, etc. They saw Broadway shows and dined in nice restaurants. You see, his parents died when they were both in their '50's ... before I was born.
My parents were fastidious about paying their bills and creating a sensible budget. Although not "rich" - whatever that means - they believed in enjoying their lives and paying for their children's education. My Dad did not own a Jaguar (he own a Buick Regal) and did not own a "near mansion" home upon retirement ... instead he bought, in addition to the 3 bedroom 2 bath ranch-style home I grew up in, a waterfront condo on the beach to stay on weekends. In other words my folks did not put their lives "on hold."
Where we agree is to be responsible and not reckless with one's finances; to live within one's means.
You may criticize my parents for not leaving their children $1.3 million, but I don't resent getting a much smaller inheritance. I'm glad they lived a wonderful and comfortable and glorious life and did not deprive themselves of little luxuries. My brothers and I worship the blessed memory of the two most fantastic parents a person could have, because in the end they were admired and respected for their kindness, happiness, generosity, devotion, and values.
that's great that you were able to find a way in life to build a little security. yes everyone should be able to do they same. I hear what you are saying about a mindset, however there are millions of hard working americans who don't make much money to begin with. it is almost impossible to put away cash to save when the car breaks down one week, the next the tire blows and the next your hours at work get cut. not to mention the kids need new clothes for school.
yes anyone that maintains a job, doesn't get fired and doesn't have a series of bad breaks, year after year can build a bit of a nest egg, however that isn't reality for a lot of hard working people.
I agree with a lot of this ^^^^
I think it is important to realize that someone who work hard their whole life might never be "rich". Also, everybody has different definition of what "rich" really means.
I've always dreamed to be an artist and a professional athlete. But reality bites and I realized I really have no marketable skills. Being realistic is the first step moving forward, at least to me.
I learned networking, investing conservatively, work hard and I also learn to appreciate my parents because they give me trust fund to rely on. I also learned to set reasonable goal for myself. But I cannot deny that I am lucky because of my folks.
For average hard working Americans who have several kids to raise, they need a lot of luck and some good opportunities.
Please don't take this personally, it is not a criticism of your godfather or a repudiation of his life philosophy ... just a different point of view.
I admire the life path my father set out more than the person who had "a middle- to upper-middle class income who lived for 40 years like a lower-middle-class guy" and never took "extravagant vacations" or only drove used cars. My Dad earned a middle-to-upper-middle-class income and he lived like a middle-to-upper-middle-class person. He lived within his means, was never in debt (except for the mortgage on the first house) drove nice but not 'luxury' cars and we took very nice vacations - to Mexico, the Caribbean, Europe, Israel, etc. They saw Broadway shows and dined in nice restaurants. You see, his parents died when they were both in their '50's ... before I was born.
My parents were fastidious about paying their bills and creating a sensible budget. Although not "rich" - whatever that means - they believed in enjoying their lives and paying for their children's education. My Dad did not own a Jaguar (he own a Buick Regal) and did not own a "near mansion" home upon retirement ... instead he bought, in addition to the 3 bedroom 2 bath ranch-style home I grew up in, a waterfront condo on the beach to stay on weekends. In other words my folks did not put their lives "on hold."
Where we agree is to be responsible and not reckless with one's finances; to live within one's means.
You may criticize my parents for not leaving their children $1.3 million, but I don't resent getting a much smaller inheritance. I'm glad they lived a wonderful and comfortable and glorious life and did not deprive themselves of little luxuries. My brothers and I worship the blessed memory of the two most fantastic parents a person could have, because in the end they were admired and respected for their kindness, happiness, generosity, devotion, and values.
I am following my father's example.
Sounds like your parents made an informed, and completely understandable, choice to accumulate a wealth of life experiences instead of material wealth. I wouldn't even think of criticizing them or anyone else for choosing a similar path....as long as they don't complain about how it's impossible for anyone but the offspring of the rich to get rich.
FWIW, I'm following a path much closer to your parents' than my Godfather's. I fully understand that I could have possible been materially rich in retirement had I chosen to do things differently.
For average hard working Americans who have several kids to raise, they need a lot of luck and some good opportunities.
Having children when you can barely afford them is a good way to guarantee you'll never be wealthy.
One thing I think you'll find that is very common with wealthy people is that they put off having children until their career/business was well established and they had the sufficient income to continue building wealth while raise children at the same time.
Having children when you can barely afford them is a good way to guarantee you'll never be wealthy.
One thing I think you'll find that is very common with wealthy people is that they put off having children until their career/business was well established and they had the sufficient income to continue building wealth while raise children at the same time.
That is very very true. Great thoughtful posts by the way.
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.
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.
