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

[dirtbiker]

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/millionaire-next-door-myth/

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

 

[street]

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.

 

[Midpack]

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...

 

[Amethyst]

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

T

https://www.thefrugalgene.com/millionaire-next-door-myth/

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

 

[audreyh1]

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/millionaire-next-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.

 

[griffithee]

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.

 

[ggbutcher]

Inflation has lowered the bar, so keep that in mind...

 

[Andre1969]

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.

 

[LarryMelman]

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.

 

[marko]

"Life isn't fair. Your job is to go where it isn't fair in your favor."

 

[dg001]

It reminded me of the SNL sketch.

https://youtu.be/ATTMB4gH3sU

 

[Senator]

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.

 

[Dtail]

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.

 

[Aerides]

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.

 

[Senator]

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.

 

[dirtbiker]

I also wonder how many of the silent generation thought the same of the baby boomers, who thought the same of generation x, etc.

 

[COZICAN]

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.

 

[Rianne]

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?"

 

[marko]

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.

 

[Bigdawg]

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

 

[ugeauxgirl]

There are people who figure out a way to achieve their goals and there are people who make excuses why it is not possible. I think that has always been the case. I think the biggest impediment to millennials is that they haven't ever been without and that they consider luxuries as necessities.

I'm guilty of this too, having grown up in an upper middle class family. My husband grew up poor though, and I appreciate his perspective.

When I was at my baby shower for my first child, my grandmother got a little wide eyed at all the stuff and listened quietly as everyone told me all the things I NEEDED. After everyone left she told me that all she had to care for my dad was a bottle and some cloth diapers. Everything else was nice, but optional.

 

[Scrapr]

I gave TMND to my boy right after High School. He didn't have much interest. As my late wife & I were making final arrangements & trusts and such we took him out to lunch. We shared the size of our nest egg. And he was shocked. He asked why didn't you stop at $1 million? LOL I guess we lived up to TMND even in our own house. We are classic TMND case study. Construction trade owner. Just wished we had started earlier. Could have had another double of assets

 

[ExFlyBoy5]

Absolutely one of my favorite books (and series). I had the pleasure of meeting Dr. Stanley a couple of years before his death (he lived a couple of miles from us) thanks to my dad. It's a long, convoluted story but he was a brilliant man. Hid daughter is following in his footsteps and is equally talented.

Anyway as to the "millennial" stereotype, when I went to law school (2015-18) my class was nearly ALL millennial. Many of these young men and woman have now gone on to own their own law firms. This is NOT an easy task....by any means. Nonetheless, they have grabbed the bull by the horns and are getting it done. I think every single one of them will be successful and I imagine a few of them will be TMND in a short order.

We have had some work done around the house and several of the contractors (owners) have been millennial and have worked as hard as anyone in another generation I have known. They too are getting it done.

Last point on the subject of the "millennial": Not too long ago the DW and I were at a bar having a few adult beverages. We were having a conversation with a law student who was in his late 20's. At some point, the discussion turned to millennial and "their perceived shortcomings". He brought up a very good point on the famed participation trophy...he said, "You know, we didn't ask for them...it was the generation BEFORE us that decided we should all get a trophy!" So, if that generation is so bad, whose fault is it?

 

[gwraigty]

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

Maybe you have and just don't know it, because they keep their mouth shut about it and don't flaunt their wealth.

 

[Midpack]

Last point on the subject of the "millennial": Not too long ago the DW and I were at a bar having a few adult beverages. We were having a conversation with a law student who was in his late 20's. At some point, the discussion turned to millennial and "their perceived shortcomings". He brought up a very good point on the famed participation trophy...he said, "You know, we didn't ask for them...it was the generation BEFORE us that decided we should all get a trophy!" So, if that generation is so bad, whose fault is it?

The same self righteous generation that was going to make the world a much better place as hippies, and went on to preside over the longest stretch of government deficits/record debt and more shameless corporate outlaws than generations before. The generation many of us are from, self included. We haven't left the world a better place, we ended the long standing notion of the next generation doing better than we did, and we've left millennial's and their children to pay for it...