"The Millionaire Next Door" - 10 years later...

[rs0460a]

http://www.mcall.com/business/yourmo...sslocal-ym-hed

[HFWR]

Amen, brother...

[grumpy]

A good article reiterating the truths many of us here figured out for ourselves long ago. That's how we reached FIRE.

Grumpy

[audreyh1]

Great stuff! This guy does a real service!

Quote:

They are thrifty. ''There is still a wonderfully frugal group of people in America that we don't talk about, but they're out there,'' Stanley said. ''The majority of them don't have a wine collection. They do serve wine to guests, but the median value of a bottle was about $13, not expensive stuff. ''It's not an impressive lifestyle; it's just that they're not confused. The reason they don't have a second home isn't because they can't afford it. It's just a hassle.'' Stanley's most recent research for his coming book is about brands that wealthy people use. ''There are a lot of millionaires buying stuff at Wal-Mart. They don't have a problem with buying, maybe, socks or underwear there or at a Costco or Sam's Club. Men's Warehouse is selling them a lot of suits, I can tell you that,'' he said. ''People think, 'If I wear a $900 suit, I'm going to look wealthy.' The problem is, if you wear a $900 suit and put the glitz on, you're not going to look wealthy, because wealthy people don't do that. ''What I'm trying to tell people, especially young, impressionable people, is this ain't the way the world works. If you're looking at being happier by having more things, get a life.'' They are not deprived and miserable. ''On a scale of happiness, they're quite happy,'' Stanley said. ''In fact, the more wealth you have, the higher your satisfaction.'' But their happiness comes not from material things but from achievement and being financially independent. It comes from satisfaction with their family and job. ''There is absolutely no correlation between happiness and the brand of car you drive. It has nothing to do with it. What happens is before you buy the Porsche, you'll think it will make you happy, but it doesn't work that way. The guys wearing a Seiko watch or a Rolex or a Timex have no difference'' in happiness.

I remember reading the book when I was already one of those "secret" millionaires who live next door. I had never read anything like it. It was the first time I realized that DH and I were not alone in being lifelong LBYMers and wealthy but quite inconspicuous. Although we didn't become FI through frugalness, the mentality has helped us make the most of our luck.

BTW - a year or so ago we discovered McManis Vineyards wines (Whole Foods carries them among others). By now we've tried several varietals. Most of them are $11 a bottle, and the "best stuff" (the Petit Syrah) is all of $13. You really don't have to spend more that $13 a bottle to enjoy great wine.

Audrey

[Rich_by_the_Bay]

Interesting how he doesn't just shake his head at the high-spending would-be's in sadness, but actually seems to have a bit of a bone to pick with them.

[rs0460a]

Quote:

Originally Posted by Rich_in_Tampa Interesting how he doesn't just shake his head at the high-spending would-be's in sadness, but actually seems to have a bit of a bone to pick with them.

Well, it might be a bit of frustration on his part. Since I'm 4 months away from ER, I get more and more people "not understanding how I can do it". Of course, these are the people that spend all (or more) of what they make.

It's a tough road to try to convince them that there is a "better way". However, when I start to talk about LBYM, managing your own investments (rather than paying someone else to "steer your future") their eyes glaze and they just don't understand (or "buy" into what I'm saying).

I've come to the conclusion that if you want to spend what you make (or more, of course ), enjoy your job/lifestyle, than that's your decision, and I'm happy for you.

However, like the author, I feel "frustrated" since I (and many on this board know) that there is a "better way"...

- Ron

[gindie]

Looking forward to reading Stanley's new book.

[macdaddy]

I'm glad to see he practices what he preaches... or maybe that was all for the article and he had his new BMW and hummer parked around the back. 8)

[Delawaredave]

Awesome article - thanks for posting.

"You can look wealthy or you can be wealthy. For most people, the choices are mutually exclusive"

Unfortunately the country seems obsessed with "looking wealthy".

[Goonie]

Quote:

Originally Posted by Delawaredave Unfortunately the country seems obsessed with "looking wealthy".

I've had street people offer me change for a cup of coffee!!! So much for looking wealthy, huh?!

Quote:

Originally Posted by Delawaredave Awesome article - thanks for posting. "You can look wealthy or you can be wealthy. For most people, the choices are mutually exclusive" Unfortunately the country seems obsessed with "looking wealthy".

Naw this is really a good deal for everyone. Keeps the economy humming along! - Also, I like to see these folks spending all their money and profess to like their jobs. Hopefully they stay employed and keep funding the S.S. Fund!

We used to have Salesmen in the software industry that were cheered on when they bought their huge California McMansions! - We knew that they had to keep selling the software to make their house payments!

It's guys like this that write these books that piss me off!

[MonarchDon]

Quote:

Originally Posted by audreyh1 BTW - a year or so ago we discovered McManis Vineyards wines (Whole Foods carries them among others). By now we've tried several varietals. Most of them are $11 a bottle, and the "best stuff" (the Petit Syrah) is all of $13. You really don't have to spend more that $13 a bottle to enjoy great wine. Audrey

Audrey, thanks for the wine recomendation......
We watch the supermarket ads, when Rodney Strong (Cab or Merlot) goes on sale we load up, it's a very good value at regular prices but when it goes below $10 it is an exceptional value and don't forget to get rainchecks if they run out

[FinanceDude]

Quote:

Originally Posted by Goonie I've had street people offer me change for a cup of coffee!!! So much for looking wealthy, huh?!

THAT IS AWESOME!!! That's the look I always go for.........

I was in Home Depot wearing some old grey sweats and a faded Wisconsin shirt, along with my Sam's Club jacket and an old baseball cap. I was looking at some DeWalt tools, and was ignored the whole time. I bought a light switch cover and left.

Also, once when I went to help serve meals at the dowtown mission, one of the volunteers told me to go IN LINE...............

hey, the jeans didn't look that bad...........

[ashtondav]

Quote:

but the median value of a bottle was about $13

:P

[brewer12345]

Quote:

Originally Posted by FinanceDude I was in Home Depot wearing some old grey sweats and a faded Wisconsin shirt, along with my Sam's Club jacket and an old baseball cap. I was looking at some DeWalt tools, and was ignored the whole time. I bought a light switch cover and left.

Doesn't matter what you wear; you'll still be ignored by the "help" at Home Despot.

[FinanceDude]

Quote:

Originally Posted by brewer12345 Doesn't matter what you wear; you'll still be ignored by the "help" at Home Despot.

That's why I started going to a little family run place where all the contractors go. Third generation of the family all work there, and sometimes even the contractors butt in and recommend stuff..............

[MasterBlaster]

Isn't it amazing that people will determine their own self worth based on how they are treated by some one making $9/hour at Home Depot.

Oh we are sensitive little things aren't we !

[kcowan]

Quote:

Originally Posted by brewer12345 Doesn't matter what you wear; you'll still be ignored by the "help" at Home Despot.

I believe in dressing the part. If I need help, I dress up a little. Sometimes I purposely dress down to be left alone.

[tednvon]

Son of a gun, mine is a 96 Toyota Avalon with 133K miles...best car I have ever owned...and..rent in Florida for 3 months, would never buy, don't need the hassels like he said...

I sent that article to my son-in-law who is working really hard to "get it."

Happy Holidays to you all...Ted

[Nords]

My ponytail makes me invisible on military bases now.

Quote:

Originally Posted by MasterBlaster Isn't it amazing that people will determine their own self worth based on how they are treated by some one making $9/hour at Home Depot.

Considering the quality of the "help", I usually dress down at Home Depot to be left alone. But it is fun to talk with some of the older clerks who can actually pronounce the technical vocabulary.

The way I'm treated by a store's help tells me a lot about their customer service. Anyone can fall over people dressed like Donald Trump or Oprah Winfrey. But if they won't help guys who dress like me then we're definitely on our own.

Fidelity is having their "Client Appreciation Dinner" tomorrow night, and since they no longer have a Honolulu office they're flying out the staff from Seattle. ("Who wants to go to Hawaii the week before Christmas? Anybody?!?") It'll be interesting to meet these people face-to-face, especially considering that they've had a chance to study up on our brokerage accounts and correlate names to balances. Maybe I can persuade a couple of them to go out surfing the next day...