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

[Markola]

I read the article. I am Gen X and they said all the same stuff about the lousy late 80s job market. If there’s a will to save and invest so that you have choices when you’re older, there’s a way. What I see among my generation as kids go to college is that people like me who’ve saved and invested intentionally since our first job in our 20s are rare as hens’ teeth.

 

[rothlev]

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.

I worked in special needs also. My life experience tells me life is not fair. Some people work hard their whole life, and come out with nothing to retire on, poor health etc... some people work jobs without health insurance, some people work hard physical jobs, and thanks to that wonderful bell shaped IQ curve some people are not endowed with genetics that will help them succeed. Some people never learn to defer gratification. No we do not all come to a level playing field. luck, genetics and cultural and environmental experiences can be a negative or a positive.

 

[ponyboy]

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.

Comparison is the thief of joy.

I always loved that quote. Not sure who coined it.

 

[audreyh1]

That's got to be situational. My govt and military millennial co-workers would snort. 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

Me too. I never valued diamonds and expensive jewelry and didn’t get spending on that. We got simple gold wedding bands.

 

[Bestwifeever]

In the context of this thread and my previous post, is the only thing preventing people with those kinds of handicaps from becoming Millionaire Next Doors a lack of hard work? The Down Syndrome story is anecdotal and the business was started in conjunction with his father.

It is a sweet story, and as you say, his father was the driver. Their website https://johnscrazysocks.com/pages/our-story says "John’s Crazy Socks is a father-son venture inspired by co-founder John Lee Cronin, a young man with Down syndrome."

The millennials I know are all doing pretty darned good, but the millennials in my extended family chose another path. They both believe luck played a big part in their outcomes, and yes doors were opened for some, but one group works a lot harder.

 

[Amethyst]

I don't know, because I never had one of those jobs. But I moved 1,000 miles, on my own, to get a job with a clear upward path. Moving for a job (I mean other than in military service) wasn't considered extraordinary; lots of people I knew did it. Back then we had planes, trains, long-distance phone calls and first-class mail, so it wasn't like going to the moon.

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.

.

 

[ugeauxgirl]

Me too. I never valued diamonds and expensive jewelry and didn’t get spending on that. We got simple gold wedding bands.

I told DH that he didn't have to buy me a ring with a real diamond- I didn't care about expensive jewelry and (IMHO) a cz shines just like a real diamond for a lot less. He looked at me like I'd grown a second head. I think he thought it was a trick and he bought the real thing. I wasn't kidding though. [emoji23]

 

[JoeWras]

I don't know, because I never had one of those jobs. But I moved 1,000 miles, on my own, to get a job with a clear upward path. Moving for a job (I mean other than in military service) wasn't considered extraordinary; lots of people I knew did it. Back then we had planes, trains, long-distance phone calls and first-class mail, so it wasn't like going to the moon.

Yep. Had to do it for my high tech career. Family was confused since nobody moved before. Yet, their parents and great-grandparents moved from Europe to USA, so I'm like "what's the big deal." Not going to the moon.

 

[Amethyst]

One of my bosses - whom I distrusted and disliked - told me, in all seriousness, that I was smarter than he was. "You're one of those big-brain people," he informed me. But he climbed higher in the hierarchy than I did, and I attribute it to his highly-developed sense of CYA. Nothing was EVER his fault. He knew how to make it other people's fault, such as mine. I never learned that skill.

Another boss put it differently. "You have tremendous integrity." He also climbed pretty high, but I later saw this good man brought low by workplace intrigue and treachery.

So, bad traits can help you succeed, I guess.

I suppose that the "luck" part of the equation is that some people are born with a higher IQ than others.

 

[Jerry1]

Comparison is the thief of joy.

I always loved that quote. Not sure who coined it.

I love that. Thanks for sharing. Looked it up. Theodore Roosevelt.

 

[kgtest]

I love that. Thanks for sharing. Looked it up. Theodore Roosevelt.

Love it! Top 10 quote for sure. Way to go Teddy. With the advent of social media I think this quote holds a stronger value.

Count your blessings, not your neighbors.

 

[ugeauxgirl]

My favorite- "He who is not contented with what he has, would not be contented with what he would like to have." SOCRATES

 

[MichaelB]

Sheryl Crow (Soak up the sun)

It's not having what you want
It's wanting what you've got

 

[GravitySucks]

Honestly if your talents lie in what is highly valued (engineering, finance) these days it's probably easier to hit FIRE nowadays. If your talents are not as highly valued you're pretty well screwed. More now than ever since the Depression.

 

[Bestwifeever]

If you can’t be with the one you love, love the one you're with

 

[razztazz]

My favorite- "He who is not contented with what he has, would not be contented with what he would like to have." SOCRATES

Actually this sounds like the kind of excuse people with no ambition tell themselves. And other people. Is not a discontent with one's lot and an aspiring to greater happiness through achievement ( i.e. Acquiring more wealth and a pile of hardware OR taking a bunch of trips) what is supposed to motivate us? At least according to the philosophy of some? Take here for instance. Nobody here was content with what they had.

 

[ExFlyBoy5]

One of my bosses - whom I distrusted and disliked - told me, in all seriousness, that I was smarter than he was. "You're one of those big-brain people," he informed me. But he climbed higher in the hierarchy than I did, and I attribute it to his highly-developed sense of CYA. Nothing was EVER his fault. He knew how to make it other people's fault, such as mine. I never learned that skill.

Another boss put it differently. "You have tremendous integrity." He also climbed pretty high, but I later saw this good man brought low by workplace intrigue and treachery.

So, bad traits can help you succeed, I guess.

Your boss reminded me of another interesting point that was made in the book (I know, I know...back to the original subject...I am SORRY!).

I don't recall the exact numbers, but many of the millionaires that were surveyed not only didn't go to ivy schools, a great many of them didn't do great. I don't remember the average GPA that was reported in the book, but it was in the 3.0 range and the SAT scores weren't too remarkable, either. He even discussed that there were a large number that he coined the "900 Club" for those that scored 900 or lower on the SAT (old scale).

 

[Tom52]

I don't know who originally said it but something along these lines... "I'll do today what others won't, so I'll have tomorrow what others don't"....seems quite appropriate for many of us that started from humble beginnings and, sometimes against great odds, achieved TMND status.

I used to keep those words on a sticky note on my computer terminal at w*rk. It was my daily inspiration to do whatever it took to achieve FIRE.

 

[LarryMelman]

Yep. Had to do it for my high tech career. Family was confused since nobody moved before. Yet, their parents and great-grandparents moved from Europe to USA, so I'm like "what's the big deal." Not going to the moon.

Ditto for me. I was the first one on either side of the family to get a 4-year degree and move away. No one was confused by it; I guess with me it was expected. Still I think there was some disappointment that I moved cross-country instead of at least trying to stay in the home region. My siblings all followed my example, and when our parents retired, they relocated near me. Most of the cousins on both sides stayed "home".

 

[big-papa]

Ditto for me. I was the first one on either side of the family to get a 4-year degree and move away. No one was confused by it; I guess with me it was expected. Still I think there was some disappointment that I moved cross-country instead of at least trying to stay in the home region. My siblings all followed my example, and when our parents retired, they relocated near me. Most of cousins on both sides stayed "home".

Add me to the list. Grew up in a relatively poor state, got a degree in tech and moved one state over. Only one among my 10 siblings with a degree and the only one who moved away. Pretty sure my Mom was in denial that I was going to move until it actually happened as soon as I graduated. Most of the next generation stuck around within 50 miles of where I was born, except for two nieces and 1 nephew (out of 26+ nieces/nephews) who also moved out of state.

Still love to visit my home state and of course my siblings, but honestly couldn't imagine ever living there again, even in retirement.

 

[Mdlerth]

It was time, not timing... and certainly more than simply luck

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.

If we are honest we would certainly admit that whatever success any of us achieve is a function of multiple factors. Some factors are within our control and some are random. Timing and luck (and others) certainly count as factors.

However, I've read a number of posts which appear to argue that "luck" consists only of random factors. Afraid I'll have to disagree. Where and when and to whom you are born are random. Certain aspects of your mental and physical health are random. But in the end, how much "luck" we enjoy will end up being far more influenced by the decisions we make. Just like interest, luck can be compounded.

If we set out making poor choices, such as overspending, criminal behaviors, subjecting ourselves to risks of addictions/diseases/etc, then we alter the range of options available when we reach the next decision point.

Now, if you are severely mentally and physically handicapped, I will agree that "random luck" plays an overwhelming role. Ditto if you were born under some third world dictatorship. But unless you are going to argue that the people under discussion who can't FIRE suffered from those afflictions, then "random luck" isn't going to be an overwhelming factor. And if that is your argument, I invite you to overcome my skepticism by showing your data.

Here's another perspective. From my own experience, I can't conclude that timing or "luck" - or talent or brilliance or strategy or attractiveness or pheromones - were nearly as important as persistence. If I saved 20k per year and made 7% returns, I'd hit a million after 23 years. If I'd been less disciplined and saved only half as much then it would take 31 years to hit that million. However, I'd still hit it and it wouldn't take twice as long. For me, the most powerful factor was to keep plodding along until I got there.

I'll also note that those extra 8 years might be a topic of controversy on a forum about early retirement, but as far as the general population is concerned it would be well within a perfectly reasonable career length and would get me out way earlier than FRA.

 

[karen1972]

Yet I read post after post in the FIRE reddits of millenials killing it.

Yes, frugal is the path to wealth typically in every generation.

Tuition in my state has just under doubled in a matter of 30 years. However, beginning salaries for my degree are up 300%. So my niece is going into a similar degree as me hoping for a positive outcome. I just can't get over what people are willing to pay for college when the same degrees are offered from public colleges for fraction of the cost and I have no pity party for them, I was just as successful having a college name that not a single person had ever heard of.

What this generation has, that I never did was access to information. If you want to live smart and be financially savvy there is a million resources at your fingertips. Most of what I learned was listening to hours of talk radio and digging thru the library.

I think this next generation should actually be on better footing because they saw what happens when you live large (as many saw their parents struggle).

 

[imoldernu]

Much talk about college as a stairway to success, and along the way, monetary security.

With full scholarship options to all Ivy League Schools, and maybe 10 others,(grades and athletics), my choice was Bowdoin:
https://www.niche.com/colleges/bowdoin-college/

Then as now, not a steppingstone to riches, but to life. The broadest base possible, in all of the natural sciences, biology, psychology, mathematics, languages (3 for me), philosophy, religion, art, creative writing, astronomy, sociology, history and a few more...

The objective for me, was never to be rich but to be happy in life.

So,,, I think I/we have succeeded... definitely not rich, but ultimately happy.

With 61 years of marriage, jeanie and I are contented, safe, and hoping for more. One of my best friends, and his wife just had a featured newspaper article about them... 78 years married, very alert, and age 100 for both.

Instead of having $1,000,000, we want to be like Helen and Kelly.

 

[jkern]

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.

Well said. I wish more people were taught this as a child.

 

[Gumby]

I don't know who originally said it but something along these lines... "I'll do today what others won't, so I'll have tomorrow what others don't"....seems quite appropriate for many of us that started from humble beginnings and, sometimes against great odds, achieved TMND status.

I used to keep those words on a sticky note on my computer terminal at w*rk. It was my daily inspiration to do whatever it took to achieve FIRE.

That was Hall of Fame wide receiver Jerry Rice of the San Francisco 49ers. The most cited version of that quote is

“Today I will do what others won't, so tomorrow I can accomplish what others can't.”

Wisdom for every generation of ER wannabes.