Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
‘The Millionaire Next Door’ is a Myth to Most Millennials
Old 08-14-2019, 06:54 AM   #1
Recycles dryer sheets
dirtbiker's Avatar
 
Join Date: Apr 2019
Posts: 261
‘The Millionaire Next Door’ is a Myth to Most Millennials

This article is a couple of years old, but a friend recently posted it on FB. Then it got a ton of replies about how hard it is today and how the deck is stacked against the millennials today, etc. I refrained from commenting there, as I know group think when I see it, and I didn't want to be involved in any poo-flinging. FWIW, I'm a millennial as well, though at the oldest end of the generation, so I never really identified as such.

https://www.thefrugalgene.com/millio...ext-door-myth/

It sounds like a long list of whining and excuses to me. What do you guys think?
__________________

dirtbiker is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 08-14-2019, 07:06 AM   #2
Thinks s/he gets paid by the post
 
Join Date: Nov 2016
Posts: 2,595
Interesting! I think it would be as easy as ever to become a millionaire today, as it would have been 30 years ago. Nothing has changed in becoming one and everyone knows the basic rules and method.
__________________

street is offline   Reply With Quote
Old 08-14-2019, 07:09 AM   #3
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Midpack's Avatar
 
Join Date: Jan 2008
Location: LKN
Posts: 13,953
A seminal book for me personally, I’m certain we reached FI sooner because I read TMND along with a couple other ‘epiphany books.’

It may be harder today than it was for my generation, but LBYM is still the only path to FI for most people that I know of - whether you make $40K, $400K or $4M per year. Anyone who says it just can’t be done anymore as a blanket statement and doesn’t try as a result will probably deeply regret it one day...
__________________
No one agrees with other people's opinions; they merely agree with their own opinions -- expressed by somebody else. Sydney Tremayne
Retired Jun 2011 at age 57

Target AA: 45% equity funds / 30% bond funds / 25% cash - radically changed Nov 2018
Target WR: Approx 2.5% Approx 20% SI (secure income, SS only)
Midpack is offline   Reply With Quote
Old 08-14-2019, 07:15 AM   #4
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Amethyst's Avatar
 
Join Date: Dec 2008
Posts: 7,658
Not really. Speaking in generalities, yes, but not really "whining" per se. Her writing is careless, but once I got past that, some of her points about inflation, low-paying jobs, etc. seem apt. I know that most young people aren't the young bright lights I was working with before retirement, and won't do as well (those people are all doing extremely well for their age).

More - instead of wallowing into "how awful it is nowadays," she segues into frugality and mindfulness as the only real solutions, then or now, to the lack of a silver spoon.

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

Quote:
Originally Posted by dirtbiker View Post
T

https://www.thefrugalgene.com/millio...ext-door-myth/

It sounds like a long list of whining and excuses to me. What do you guys think?
__________________
If you understood everything I say, you'd be me ~ Miles Davis
'There is only one success – to be able to spend your life in your own way.’ Christopher Morley.
Amethyst is offline   Reply With Quote
Old 08-14-2019, 07:18 AM   #5
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
audreyh1's Avatar
 
Join Date: Jan 2006
Location: Rio Grande Valley
Posts: 22,678
Quote:
Originally Posted by dirtbiker View Post
This article is a couple of years old, but a friend recently posted it on FB. Then it got a ton of replies about how hard it is today and how the deck is stacked against the millennials today, etc. I refrained from commenting there, as I know group think when I see it, and I didn't want to be involved in any poo-flinging. FWIW, I'm a millennial as well, though at the oldest end of the generation, so I never really identified as such.

https://www.thefrugalgene.com/millio...ext-door-myth/

It sounds like a long list of whining and excuses to me. What do you guys think?
I know the Millionaire Next Door is not a myth, because I read it shortly after retiring, and it described us very well.

We were late baby boomers. I’m sure it’s a lot tougher for younger folks. The US economy was roaring during my working years, and state university with top education was very cheap, so I never had to deal with loans.

So I do see a point of how the world has changed.

We were naturally reasonably frugal, but it was a business windfall that let us retire early, so I never kid myself that we saved our way to early retirement.
__________________
Retired since summer 1999.
audreyh1 is online now   Reply With Quote
Old 08-14-2019, 07:19 AM   #6
Recycles dryer sheets
 
Join Date: Jul 2016
Location: Cypress
Posts: 137
Quote:
Originally Posted by Midpack View Post
A seminal book for me personally, I’m certain we reached FI sooner because I read TMND along with a couple other ‘epiphany books.’
Us too. Your Money Or Your Life as well.
griffithee is offline   Reply With Quote
Old 08-14-2019, 07:21 AM   #7
Recycles dryer sheets
 
Join Date: Jan 2014
Posts: 271
Inflation has lowered the bar, so keep that in mind...
ggbutcher is offline   Reply With Quote
Old 08-14-2019, 07:30 AM   #8
Thinks s/he gets paid by the post
 
Join Date: Aug 2005
Location: Crownsville
Posts: 2,367
I think in absolute terms it should be easier to become a millionaire, as time goes on, simply because it means less, thanks to inflation. When I got serious about investing for retirement, in 1999, $1M would be like $1.5M today. Conversely, $1M today would be like only saving up around $666K back in 1999. Back in the early 60s, it would have only taken around $125K to be the equivalent of a millionaire today. Or, to have $1M in 1962 would be like having $8M today.

That aside, I think as a whole, it might be harder for millenials, and the generations to follow, to become millionaires, when adjusting for inflation. For one thing, college costs have gone up considerably. I went to the University of Maryland, and I remember my first semester, fall of 1988, was just under $900, plus books. By spring of 1993, it had shot up to around $1500. That was faster than inflation, and we thought that rate was bad back then! But, today, I think it's close to $5,000 per semester, for in-state.

Granted, a lot of people go to school and get useless degrees, or spend too much time goofing off and running up bills. But, even "useful" degrees aren't cheap.

I think a bigger problem, however, might end up being shorter career spans. Many of the younger generation I see today are starting in their careers much later than my generation did. It's taking them longer to get through college, and when they graduate, they have more bills to pay. But, age discrimination is still a major thing. It's more common than we want to admit, and it's hard to prove. So, I can see many of these younger people starting later in life, so they don't have as many years to build up their resources, but they still get cut down in their 50's, when, if things were going their way, they'd otherwise be in their peak earning years.

Also, I don't have any evidence to back this up, but I have a feeling it's more common these days for people to wind up in a job that pays well, but isn't that secure. So they have a good run where they make that money, but then they get laid off, and have to burn through some or all of it, before landing another job. Lather, rinse, repeat, until the whole age discrimination thing sets in.
Andre1969 is online now   Reply With Quote
Old 08-14-2019, 07:33 AM   #9
Recycles dryer sheets
LarryMelman's Avatar
 
Join Date: Jul 2019
Location: Phoenix
Posts: 100
I hate generational stereotypes. Rules of LBYM, not taking on excessive debt (student or otherwise), and selecting a college major (or a trade) based on earning potential simply do not change.

I'm sure plenty of millennials have followed those rules. You just don't hear about them. Which was the whole point of TMND, wasn't it.

With that said, colleges are a lot more expensive now, and offer far too many worthless degrees. And many of our old manufacturing cities are hurting. Children have been raised with a lazy sense of "entitlement" for 30 or 40 years now. Every generation has its own issues to deal with.
LarryMelman is offline   Reply With Quote
Old 08-14-2019, 07:46 AM   #10
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Mar 2011
Posts: 5,862
"Life isn't fair. Your job is to go where it isn't fair in your favor."
__________________
Living well is the best revenge!
Retired @ 52 in 2005
marko is online now   Reply With Quote
Old 08-14-2019, 07:47 AM   #11
Dryer sheet wannabe
 
Join Date: Mar 2017
Posts: 13
It reminded me of the SNL sketch.

https://youtu.be/ATTMB4gH3sU
dg001 is offline   Reply With Quote
Old 08-14-2019, 07:47 AM   #12
Thinks s/he gets paid by the post
Senator's Avatar
 
Join Date: Feb 2014
Location: Williston, FL
Posts: 3,621
Many people think that it is impossible to be a millionaire, as they do not understand the work required to reach a higher financial level. It has never been easier than today, as a million is not what it used to be. Everyone is a victim of something, and that gives people an excuse to think they cannot do better.

Far too many people, millennials and others, think that if you just go to work, something magical will happen and they will be millionaires. They think that is what happened to the millionaire that are already existing.

No one makes a million dollars at once They make a million dollars a few dollars at a time. Even big banks make their billions a few cents at a time, on interest on many millions of loans.

Find me a person willing to work 100-hour weeks, and I will show you a millionaire in due time.

In the USA, anyone can be a millionaire if they have the ambition, fortitude and willingness to sacrifice in the short-term.
__________________
FIRE no later than 7/5/2016 at 56 (done), securing '16 401K match (done), getting '15 401K match (done), LTI Bonus (done), Perf bonus (done), maxing out 401K (done), picking up 1,000 hours to get another year of pension (done), July 1st benefits (vacation day, healthcare) (done), July 4th holiday. 0 days left. (done) OFFICIALLY RETIRED 7/5/2016!!
Senator is offline   Reply With Quote
Old 08-14-2019, 07:52 AM   #13
Thinks s/he gets paid by the post
 
Join Date: Jan 2018
Location: Tampa
Posts: 4,162
A bunch of Directors in my last workplace got together and discovered that the one thing we had in common was the willingness to work massive weekly hours (65+) at one point in our career as necessary.
Not sure this is true today as much.
__________________
TGIM
Dtail is offline   Reply With Quote
Old 08-14-2019, 07:58 AM   #14
Moderator
Aerides's Avatar
 
Join Date: Nov 2015
Posts: 3,594
Sometimes I read these broad sweeping comments about "millenials" and younger people, and wonder how many of us have sat down recently with a 30 year old, new in their career, put aside our biases and compared notes...



Ok no I don't really wonder... I'm pretty sure of the answer.
Aerides is offline   Reply With Quote
Old 08-14-2019, 08:05 AM   #15
Thinks s/he gets paid by the post
Senator's Avatar
 
Join Date: Feb 2014
Location: Williston, FL
Posts: 3,621
Quote:
Originally Posted by Aerides View Post
Sometimes I read these broad sweeping comments about "millenials" and younger people, and wonder how many of us have sat down recently with a 30 year old, new in their career, put aside our biases and compared notes...

Ok no I don't really wonder... I'm pretty sure of the answer.
I see 30-year olds all the time, and even younger in my rentals. I screen out the low credit and low income, so I am left with solid people. Most of them work decent jobs, although not a lot more. And these are the better quality ones.

Once in a while I get a real go-getter, but not often. Maybe 5% or less. And that is what it takes to be in the upper 5%, work harder and smarter than the 95%.

A person needs to be a do-ers, not a talker.
__________________
FIRE no later than 7/5/2016 at 56 (done), securing '16 401K match (done), getting '15 401K match (done), LTI Bonus (done), Perf bonus (done), maxing out 401K (done), picking up 1,000 hours to get another year of pension (done), July 1st benefits (vacation day, healthcare) (done), July 4th holiday. 0 days left. (done) OFFICIALLY RETIRED 7/5/2016!!
Senator is offline   Reply With Quote
Old 08-14-2019, 08:05 AM   #16
Recycles dryer sheets
dirtbiker's Avatar
 
Join Date: Apr 2019
Posts: 261
I also wonder how many of the silent generation thought the same of the baby boomers, who thought the same of generation x, etc.
dirtbiker is offline   Reply With Quote
Old 08-14-2019, 08:05 AM   #17
Recycles dryer sheets
COZICAN's Avatar
 
Join Date: Aug 2018
Location: YUKON,OK
Posts: 229
Quote:
Originally Posted by Midpack View Post
A seminal book for me personally, I’m certain we reached FI sooner because I read TMND along with a couple other ‘epiphany books.’
Us too. My wife always refers to me as TMND. Maybe it's because I dress like a beach bum all the time. Plus I'm a natural tight wad.
__________________
Counting down to 01MAR21 @ 59.5
COZICAN is offline   Reply With Quote
Old 08-14-2019, 08:29 AM   #18
Thinks s/he gets paid by the post
Rianne's Avatar
 
Join Date: Aug 2017
Location: Champaign
Posts: 1,950
Best point made in the article. I attended the University of Illinois C-U for $748. Lived at home in C-U. $15,000 today-in state.

"If you know the power of compounding then you know that starting out negative has massive ramifications. If I had not come out with -$20,000 in student loans and invested that $20,000 until I was old and gray, imagine much more money I could have?"
__________________
"If you want to go fast, go alone. If you want to go far, go together.
Rianne is offline   Reply With Quote
Old 08-14-2019, 08:30 AM   #19
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Mar 2011
Posts: 5,862
Quote:
Originally Posted by Aerides View Post
Sometimes I read these broad sweeping comments about "millenials" and younger people, and wonder how many of us have sat down recently with a 30 year old, new in their career, put aside our biases and compared notes...

Ok no I don't really wonder... I'm pretty sure of the answer.
Have seven nieces and nephews from DW's side, all between 25 and 32. We see them quite often.

Four (family #1) are incredibly successful making $150K+ a year, travel, have already lived abroad for a while, own their own homes etc. They may be spending a bit more on 'experiences' right now (African Safaris etc) than investing but they're young and making money.

Three (family #2) are incredibly good at making excuses, playing video games, ordering pizza, having babies they can't afford and waiting for their next handout from us. All three together don't make $90K but 'the game is rigged against us' you see, so it's not their fault.

So, yes, broad sweeping statements don't apply. Like every generation, there's winners and losers.
__________________
Living well is the best revenge!
Retired @ 52 in 2005
marko is online now   Reply With Quote
Old 08-14-2019, 08:49 AM   #20
Full time employment: Posting here.
 
Join Date: Oct 2014
Posts: 678
Quote:
Originally Posted by dg001 View Post
It reminded me of the SNL sketch.

https://youtu.be/ATTMB4gH3sU
Awesome sketch. Some truth to stereotypes of every generation. 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. One other person here at work is a millionaire and he owns three rentals and got a good life insurance settlement when he lost his wife ten years ago. The 1%ers, 3%ers, 5%ers or whatever are rarely ever "normal" folks working 40 hour weeks and doing nothing else. YRMV
__________________

__________________
-Big Dawg-FI since 9/2010. Failed ER in 2015. New target 2020.-

-"Blow that dough"-Robbie

" People say I'm lazy, dreaming my life away Well, they give me all kinds of advice designed to enlighten me When I tell them that I'm doing fine watching shadows on the wall "Don't you miss the big time, boy. You're no longer on the ball" -John Lennon-
Bigdawg is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
another millionaire next door chuck FIRE and Money 3 06-28-2006 05:33 AM
Example of the "Millionaire Next Door" maddythebeagle Young Dreamers 7 08-02-2005 08:05 AM
What is your net worth based on the "Millionaire Next Door" maddythebeagle Other topics 10 07-28-2005 11:28 AM
Book Report - Millionaire next door cute fuzzy bunny Life after FIRE 72 10-18-2004 06:52 PM
Good book - The Millionaire Next Door Telly Other topics 18 08-20-2003 03:37 PM

» Quick Links

 
All times are GMT -6. The time now is 04:49 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2019, vBulletin Solutions, Inc.