Wanna be rich? Avoid this...

[imoldernu]

Just discovered why DW and I are not wealthy, and think it's important to share with you.

"The great ones know there's a price to pay for getting rich, but if they have the mental toughness to endure temporary pain, they can reap the harvest of abundant wealth for the rest of their lives,"

Rich people aren't nostalgic - Business Insider


The secret is explained in the article.

 

[imoldernu]

... and after you learn that... here's some more help!

How rich people think differently - Business Insider

 

[daylatedollarshort]

Just discovered why DW and I are not wealthy, and think it's important to share with you.




Rich people aren't nostalgic - Business Insider


The secret is explained in the article.

The article describes many who post here - "And they don't just dream — they spend years tirelessly and patiently planning in order to realize their dreams."

 

[donheff]

Here is the rest of the summary:

"People who believe their best days are behind them rarely get rich, and often struggle with unhappiness and depression," Siebold writes in "How Rich People Think."
"Self-made millionaires get rich because they're willing to bet on themselves and project their dreams, goals, and ideas into an unknown future."


But what about us ERers who are done piling it up? What keeps us rich?

 

[gauss]

@doneff - Agreed... There is more than one path to life success.

Probably best if you can adopt a plan based on your own personality rather than blindly following someone's (ie Steve Siedbold) formula.

-gauss

 

[hnzw_rui]

I think the article is mostly in reference to big risk takers who get rich quickly.

Personally, I'm fine going the slow and steady route to FI.

 

[timemoveson]

I would offer that most on here and in FIRE are "rich" not RICH. There is a difference in mindset and approach.

It clearly manifests, to me, in the delta between Tom Stanley's "glittering rich" and "MNDs". Glittering rich are really RICH (truly wealthy) people who can afford the very high lifestyles to which they ascribe based on their accumulated net worth. They really can spend $300k-$1M dollars per year and not touch their capital, or in fact add to it.

I think MNDs and those of us in between the poles are...in between...in our mindsets and approaches as well on many of the attributes listed in the reference. I certainly am some of each, even if I want to be less middle class in tackling certain of them. Hard to escape some aspect of roots and societal conditioning.

 

[hnzw_rui]

MND?

 

[2017ish]

MND?

Millionaires Next Door (I believe)

 

[Totoro]

Guessing Millionaire Next Door.

That or motor neurone disease

 

[hnzw_rui]

Millionaires Next Door (I believe)

Ah, yes. Alas, I didn't find that here:
MND - What does MND stand for? The Free Dictionary

Although "Makes No Difference" probably works just as well in the above context.

 

[zesty]

"People who believe their best days are behind them rarely get rich, and often struggle with unhappiness and depression," Siebold writes in "How Rich People Think."

Interesting, that pretty much describes me, though I have had no problem saving money. Maybe they are talking about Rich (tens of millions) instead of rich (a million or two).

I've just been in a funk for the last 5 years or so - ironically right around the time when I started seriously saving for FIRE. It seems like nothing will ever get better than it was yesterday. Every day is a little worse than the one before.

Even though my net worth goes up every year and I get closer to FIRE, it seems to matter less and less.

 

[NW-Bound]

"And they don't just dream — they spend years tirelessly and patiently planning in order to realize their dreams."

I spent years working, not planning, and one day I felt tired so I stopped work. And I am not rich.

"People who believe their best days are behind them rarely get rich, and often struggle with unhappiness and depression"...

I am not unhappy or depressed. I do not know if my upcoming days will be better or not. But I am quite certain that I have fewer days ahead of me than in my back. And I am going to pour myself a shot of my favorite spirit now, as I was denied that cocktail in the other thread.

 

[timemoveson]

MND is millionaire next door, as you guessed

Apologies - I don't even think to decode that shorthand, it comes up so frequently in conversation in and around these topics.

 

[lampshade]

And we shouldn't underestimate the power of being happy where we are.

Good feelings can help you feel rich.

 

[imoldernu]

So the MND is settled...

I had my comeuppance when someone had memories of MMND when I began posting here...
And then I found out what it meant... Well, golly gee, about as far away as one can get...

A subject for many discussions back in the early days of ER I think...

Millionaire Mommy Next Door — A self-made millionaire shares her recipe for success, happiness and financial freedom

 

[Danmar]

I find it a little ironic that most people who discuss the topic of "rich people" don't think they are "rich". Maybe it's an elusive goal that keeps moving away as you get closer? I think there must be "rich" people on this forum. Maybe they don't post much because they have more interesting things to do, ie with all that money. Or don't want to expose themselves to the LBYM'ers?

As far as the article goes. Makes sense, as the author is really describing a characteristic that would help someone become successful at whatever they set out to do, eg athlete, teacher, clergyman, etc. whether or not they get "rich". Seems somewhat self evident to me.

I certainly agree that once you are ER'ed you should accept that whatever your level of wealth is, it is the perfect amount and be happy about it. The thought that our best days are behind us is terrible, even if it may true. I certainly don't feel this way. So many interesting and fun things to do. Cheers.

 

[38Chevy454]

The funny thing is Rich ($10+ Million) are something like the top 0.1% of population, and even rich ($1-2 Million) are still in the top approx. 5% of population. So while the article seems to be for the Rich definition, most in the rich level do not see themselves as being top 5%. I am sure they all recognize they are in the top half and probably in the comfortable range of middle to top of that half. But for those that got to the top 5% by LBYM, sacrificing and saving over a working life, it does not seem the people in the rich category would define themselves as that. They may be financially independent, but that does not meet their criteria for being rich, or especially for being Rich.


My feeling is that good financial sense, hard work, positive outlook and personality have as much to do with getting to rich level than anything else.

 

[kcowan]

We on the ER Board tend to be planners. So we LBYM until we have "enough". When we are confident, then we could be described as "independently wealthy" because we no longer need to work to sustain our chosen lifestyle. This may involve millions or not.

A healthy COLAd pension with a nice nest-egg might suffice. How much that nest egg amounts to is largely irrelevant.

 

[Danmar]

We on the ER Board tend to be planners. So we LBYM until we have "enough". When we are confident, then we could be described as "independently wealthy" because we no longer need to work to sustain our chosen lifestyle. This may involve millions or not.

A healthy COLAd pension with a nice nest-egg might suffice. How much that nest egg amounts to is largely irrelevant.

Agree. Many people don't work too long after reaching their definition of FI. But some do. For some who enjoy their jobs, they keep going and perhaps end up with more than they really need. For others, the markets might take them higher than they thought or needed. Others are self employed and may suddenly find themselves "rich". In any event, some just end up with a lot. I think many of these adjust their lifestyles to fit their means in retirement. Others of course, might be too set in their ways and keep building their net worth's right to the end. To each their own.

 

[kcowan]

In any event, some just end up with a lot. I think many of these adjust their lifestyles to fit their means in retirement. Others of course, might be too set in their ways and keep building their net worth's right to the end. To each their own.

Yes I think the ones that I find sad are the ones who keep w*rking well beyond their FI time because of fear that they will not have enough.

I guess my career taught me that planning can never be perfect, and if things do not work out, you adapt at the time that you need to.

-Downsize
-Get a job
-Move to a cheaper place

Life is full of options and uncertainty.

Or
-Step up gifting
-Live the higher life
-Travel more

Most people can relate to the first group but a lot fewer are comfortable with the second group of adaptations.

 

[Danmar]

Yes I think the ones that I find sad are the ones who keep w*rking well beyond their FI time because of fear that they will not have enough.

I guess my career taught me that planning can never be perfect, and if things do not work out, you adapt at the time that you need to.

-Downsize
-Get a job
-Move to a cheaper place

Life is full of options and uncertainty.

Or
-Step up gifting
-Live the higher life
-Travel more

Most people can relate to the first group but a lot fewer are comfortable with the second group of adaptations.

Probably right but I didn't have any problem. I would think most people would rather be in your second group than your first as long as they didn't have to work too hard or long to get there.

 

[kcowan]

We did some of the first group (no job) because we found our new lifestyle was much simpler. A lot of things we used to pay for we found we had the time to do ourselves. We could also shop around more (Amazon, Groupon). We had 5 years experience being retired before we started seriously on the second group.