‘The Millionaire Next Door’ is a Myth to Most Millennials

[Gumby]

(Mod hat on) Everyone take a deep breath and realize we are among friends here. We can disagree without rancor. (Mod hat off)

 

[Amethyst]

Ants and grasshoppers do tend to nip at one another.

(Mod hat on) Everyone take a deep breath and realize we are among friends here. We can disagree without rancor. (Mod hat off)

 

[jimbee]

Disagree completely. Every single one of us has THE SAME opportunity as every other one of us.

Not even close.

 

[Senator]

I suppose that the "luck" part of the equation is that some people are born with a higher IQ than others. With a higher IQ, SAT scores may be better and higher test scores may be easier. Better health out of the gate may be "luck", and you may be able to focus more on non-health issues.

If you have parents that are tall, you are likely to be tall. Shorter parents, you are likely to be short. Higher IQ parents, you are likely to be a higher IQ. That is luck as well.

With the ability to think in terms of future possibilities, you can make better "moves" and have better outcomes. Like a Chess player. Thinking three moves ahead makes you better than most Chess players, thinking 10 moves ahead makes you a genius. Thinking of bad possibilities, before they happen, lets you avoid them. Better memories also help a person do better, you do not have to make the same mistake twice.

I once had a boss that would tell me, "If you ever have a difficult job to do, hire a lazy person to do it. They will find the easiest way to do it." It was typically after he gave me a difficult task to do, long before my IT career.

Make no mistake, it still takes results to "strike it rich". And a person without the "luck" is still able to do it, although it may be more difficult. Especially when many others are telling the person they cannot do it.

 

[razztazz]

Originally Posted by 24601NoMore View Post
Disagree completely. Every single one of us has THE SAME opportunity as every other one of us.

Not even close.

A flair for understatement

 

[candrew]

It seems a privilege of sorts for the senior generation of society to hate on subsequent ones. Been going on for as long as I can remember. Just a reminder for all ya' Boomers out there. An underemployed, younger generation threatens Boomers’ own outcomes, too, as well as broader society’s. From a purely selfish standpoint, Boomers need the taxes derived from Millennial paychecks to finance their own Social Security and Medicare benefits.

And as for those much hated on Millennials; they currently outnumber us Boomers and represent the fastest-growing markets, workforces, and business opportunities. And who do we think will be in a position to care for us Boomers as we age? Who do we think will be responsible for crafting public policy that will directly impact us Boomers as we age into our 90's and beyond?

Might be time to consider the benefits of uniting generations, folks. There is no more truth in Millennials accusing Boomers of hoarding wealth than there is in Boomers claiming that Millennials are entitled, lazy slackers.

 

[razztazz]

Might be time to consider the benefits of uniting generations, folks.

No way! It's "us" against "Them" just like it's supposed to be! Actually, I'm with you. Maybe we can build A Brave New World. But "Guess whom" is against it? Hint: They can't run and jump anymore. (No matter what they say)

 

[Jerry1]

Originally Posted by 24601NoMore
Disagree completely. Every single one of us has THE SAME opportunity as every other one of us.

Not even close.

24601, I think you’re confusing opportunity with potential. You showed great potential to rise above your circumstances. You are to be commended for what you did and I agree, the potential to do so lies within many of us given the opportunities this country provides. But that’s not the same as opportunity. I hope you don’t really believe that you had the same opportunity as the children of the ultra wealthy that send their kids to the finest schools and connect them with the upper echelon of our society. Of course that in NO WAY guarantees that they will succeed. They can an do fail, but their opportunity is significantly different than most people on this earth.

I do however, agree with your sentiment. Almost everyone has the opportunity to get busy and succeed. I too grew up in a suburb of Detroit. Not as bad as you, but no father and living on welfare as a child. It took hard work and perseverance to get where I got. However, I must admit and give some of the credit to luck in that a few great people gave me a chance and a break along the way. That sure helped.

 

[daylatedollarshort]

I had a debilitating illness years ago partly due to environmental factors, partially bad genetics and maybe some bad luck. But on the good luck side of things, I had a spouse to support me, I didn't have to work, we had great health insurance and we lived in a big metro with a everything from big university hospitals to a thriving alternative health culture. I had the opportunity to visit countless medical and alternative health professionals.

It took a long time and along the way I went to some total flakes and had some "diagnoses" of hypochondria, but eventually got a diagnosis and treatment for a very real but rare disorder and eventually was fine. If I hadn't gotten treatment I was pretty unemployable. Maybe I had some bad luck to get sick in the first place, but I sure had a lot of good luck in getting healthy. I really feel for people who have similar conditions and don't have the resources I did to get a proper diagnosis and treatment. With slightly different circumstances, I could have easily ended up sick and trying to live on Social Security disability payments, not through any lack of ambition on my part.

 

[Senator]

I guess I find it astonishing/sad that so few of us are willing to admit that at least a part of our good fortune is a result of timing and luck. I know that despite working hard, lbym, and doing our best it could have ended up differently.

I think the issue is that far too many people confuse laziness with disability or bad luck.

 

[Octogirl]

My 31 year old son is a very hard worker - 60+ hours - usually some weekend hours.

My younger son - not so much - still "finding" the right job.

Yet, they were raised the same.

 

[robnplunder]

If I can crawl out of the Detroit slums by sweat, sacrifice and hard work and RE, anyone can.

I came out of a worse place and made it (to best college, overachieved career, ER at 53). BUT ... l must say it would be a lot harder for people crawling out of Detroit slums to make it. In fact, the chance would be very tiny vs an average person. 10 years ago, I'd say anyone can if I could from a hell of a place. Then, I've learned that an average person from a slum will likely to remain in slum, no fault of their own. Only the exceptional people will make it out of there unscathed.

 

[Teacher Terry]

After spending my career as both a social worker and working with people with disabilities I say there but for the grace of God go I. Yes I worked hard but I was only able to go to college because my mom watched my 3 kids so I could attend. Yes we worked hard to pay cash for it back when it was affordable. Luckily I was smart enough to go to college. We have had some major financial events that negatively impacted us but I still feel lucky compared to many others.

 

[audreyh1]

I think the book, The Millionaire Next Door, could have easily been a 20-page pamphlet.
I read it for the first/last time a month ago.
Stilted writing.
Way too much repetition.

Maybe, but it was new information for me. Even though I was in the book!

It was the very first item I ever ordered from Amazon!

 

[unclemick]

Read the book after I was ER'd so while I applauded the attitude I also chuckled to myself.

The book wasn't remotely 'cheap' enough. I remember thinking - these people don't have guts enough to shut off the electricity during the day.

heh heh heh - . Now older and less frugal the book plus later editions are more relavent.

 

[FIREflower]

Some of the young women even told their fiances they do not want diamond rings; let's save/invest the money. Even I wasn't that frugal, lol.

*raises hand* Me!!!

My ring cost $25 off etsy.

We got married with "twist tie rings" we made for each other, which was a bit of an inside joke...long before our dating became serious we made a habit of "fake proposing" to one another whenever the fancy struck, fashioning a ring out of whatever was on hand. A blade of grass, a piece of string, a cafe's paper napkin ring, and yes, twist ties.

We shopped around enough to know what our dream rings are, and someday we'll buy them. But even though we had the budget for it thanks to my parents paying for the wedding, we realized that having savings was more important to us than those rings. At the time we barely had a month's worth of expenses saved and it was rough going.

I'm one of the people with the deck stacked against me. I still think I'll make it. I'm willing to make a lot of sacrifices others won't and what I've been through has made me ridiculously tough.

I worked a full day today and I'm about to go work for a client all night and head straight to work again from there tomorrow. Sometimes it's only 2 hours of sleep. Working the long hours helps compensate for my many many sick days. When I have a goal I find every way though that I can.

 

[NW-Bound]

How 'about this millennial?

A 22-year-old man from India who received a brand new BMW as a birthday gift pushed the car into a river – because he wanted a Jaguar instead. His parents decided not to press charges, and said that they believe their son has mental health issues.

See video at: https://www.msn.com/en-us/video/vir...because-he-wanted-a-jaguar-instead/vi-AAFNNaJ

 

[ponyboy]

24601, I think you’re confusing opportunity with potential. You showed great potential to rise above your circumstances. You are to be commended for what you did and I agree, the potential to do so lies within many of us given the opportunities this country provides. But that’s not the same as opportunity. I hope you don’t really believe that you had the same opportunity as the children of the ultra wealthy that send their kids to the finest schools and connect them with the upper echelon of our society. Of course that in NO WAY guarantees that they will succeed. They can an do fail, but their opportunity is significantly different than most people on this earth.

This. Everyone wants to reference poor areas or "slums." You can simply compare a normal working class person to uber wealthy people. Accumulating a few million over a lifetime is a joke compared to the resources UW people have. And to say that Joe working man's kids have the same opportunity as some oil tycoons kids is comical.

Anyway, I never read the millionaire next door, I probably should. Wife and I are in the millennial range. We skirted past $1 million around 2 weeks ago, not include our home in equation. Of course, we're now back below a million due to market shifts. Most of my friends have negative net worth. They spend faster than they make. I must have gotten lucky. No one really taught me to save/invest. Its just something I did. My sister is 4 years older than me and she sucks with money.

 

[Andre1969]

I think it's a long list of whining and excuses. For example:

The bolding is mine. The solution is obvious - move away from the coasts!

Heck, one of my friends, who's 46, just bought a ~$132K home, in Laurel Maryland, an area in the DC/Baltimore suburbs where there are plenty of good jobs to be had. Granted, it's a 1br/1ba condo, but that's all he needs. He's single, no kids, kind of a minimalist. His salary is also in the upper $80K range, so he's definitely NOT living beyond his means!

Also, when people talk about how cheap houses were back in whenever, one thing they forget about, is those old houses were not nearly as well-equipped as the ones today are. For instance, my grandparents paid $8500 for their house, in 1950. It was a 24x32 cape cod with an unfinished basement, and unfinished upstairs. It had an outhouse. It had well water. I don't know if it would have had a septic tank without having a toilet, although you'd still have to account for runoff from the sink, washing machine, and it did have a tub, at least. They might have just let that drain out into the yard in those days.

Eventually, it did have a bathroom put in, plus a half-bath in the basement, and a septic tank at some point. And, eventually it got hooked up to city water, and then the sewer when it came through in 1978.

Before they bought this house, they rented another house, which was just a small farmhouse with two rooms upstairs and two rooms downstairs. It didn't even have running water! They went down to the creek to get their water! They had a chance to buy this house, on one acre of ground, for $4,000 in the late 40s.

There probably are still plenty of places left in the country where people live like that. But I can guarantee you that none of these people whining about how "cheap" housing was back in the old days, would want to live in one!

 

[DrRoy]

I have never met a person who only worked a 9-5 40 hour work week and became a millionaire. Every millionaire I know either worked 60 plus hours a week, mutiple jobs, real estate or some other type of deal. The 1%ers, 3%ers, 5%ers or whatever are rarely ever "normal" folks working 40 hour weeks and doing nothing else.

I would say for the most part that I did this. It wasn't always 40 hours/wk but usually was, and I did travel a lot to be with customers. I didn't have a side deal except for investing, but I did save 20-30% of my income for 36 years and was very LBYM.

My reaction to the article falls in the middle. I think the points have some validity for many in the millennial group, but that does not mean that it cannot be done anymore. I do believe that future rates of return will be lower than our experience, as the drivers of that return are now weaker and likely to remain so.

 

[JoeWras]

At least she wasn't babbling about how great everything was in the 1970's. That meme always brings out the bitter laughter for me. If things had been great in the 70's, my life would have gone differently. I made the best of the path in front of me, and so will the young people today.

Amethyst

You mean when it was impossible to get a minimum wage job at McDonald's or the local supermarket? At least it was in my neighborhood from the late 70s to early 80s. The unemployed labor pool was just too large for a teenager to compete with.

I haven't read every post here, but I just wish the world and media would stop chopping us all up into blocks and pitting us against each other. This is a bad trend that is growing steam and really leads to nothing good.

 

[target2019]

With billions born on earth, it is not certain that everyone has the same opportunity, the same chance, and so on. This topic is in the discussion area of Nature vs Nurture. Human characteristics are infinitely distributed (or almost, LOL). In the US we have a notion that all get an equal chance, but fall short of that as a nation. Just keep trying, I say. We could use more fairness. Always.

Complaining about those that have, or don't have, will never solve a problem. There is an interesting series, "Hey White People", that pokes at many of the stereotypes, and turns them inside out at times. Probably not a series most here would watch, I'll admit.

I work with millenials, and when I hear a complaint it reminds me of me. There is not much I can say that would help. At least my own millenials are listening now, and I'm certain they will get through the unsolvable issues we left them.

 

[jollystomper]

24601, I hope you don’t really believe that you had the same opportunity as the children of the ultra wealthy that send their kids to the finest schools and connect them with the upper echelon of our society. Of course that in NO WAY guarantees that they will succeed. They can an do fail, but their opportunity is significantly different than most people on this earth.

This. Everyone wants to reference poor areas or "slums." You can simply compare a normal working class person to uber wealthy people. Accumulating a few million over a lifetime is a joke compared to the resources UW people have. And to say that Joe working man's kids have the same opportunity as some oil tycoons kids is comical.

As someone who grew up a minority in what was considered one of the worst neighborhoods in the country, and who also had the opportunity to attend an Ivy League school and see up close and personal the "ultra wealthy", I have a different perspective. Certainly my odds of joining the UW were low. But you do not need to be UW to be successful in the U.S., to become a millionaire, and to be able to FIRE. My parents taught me never to desire what other had, but to figure out what I wanted and to put my efforts into that. They taught me along the way I would encounter unfairness, prejudice, and racism, but they used to say "you don't need to the whole world to love you. You just need a few. And the more you work at being the best and being a good person, the better your odds will be of finding them".

"Opportunity" is what one chooses to make it. And there are no guarantees that you will achieve... but you may come close and learn enough in the process to realize that you are still doing very well. I perceive that many today (not just millennials) are looking for "guarantees" and not "opportunity".

Recently IDW and I attended our 40th college reunion. At one point I was chatting with a bunch of friends who all were, or had achieved, that "UW" status... and I felt fine. I did not feel any less than them, or that it was unfair that they had more than me. I had exactly want I wanted. And that is all that mattered.

 

[scrabbler1]

My favorite part: "I'm just playin. I'm Gen X. I just sit on the sidelines and watch."

You forgot the funniest part of his line: "I just sit on the sidelines and watch the world burn!"

One thing the Millennials are doing to help themselves financially that previous generations didn't do as often is having fewer (or zero) kids. Maybe they are choosing this out of necessity to keep from drowning financially. Or they just don't want to.

I attribute my being TMND to (1) LBYM, (2) being childfree, and (3) my former company's ESOP, although the last one is a somewhat smaller part of the total picture.

 

[Winemaker]

DW and I laugh about in the early '80's when we agreed that whenever we saved up $100,000, we would buy a new red 450 SEL. Now, we have been retired for almost 5 years, money in the bank, a small real estate empire and a great family. Our friend owns a Mercedes dealership, but still no Mercedes in driveway. I drove my 2004 pickup with 240,000 mile to the junkyard yesterday, as it will not pass inspection due to a rusted frame. The 12 and 14+ hour days for 35 years paid off for us.