10 Reasons You Aren't Rich - Amazing Article

great article - confirms a few things I've thought for some time. Thanks for posting

 

I love the way the article states to be patient and make your money work, and then at the end...



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This sounds exactly like the message from "Millionaire Next Door."

Be frugal. Live way below your means. Drive a ten year old American car. Don't care what the "visually rich" people think since, more than likely, they are in debt up to their necks and will never be "wealthy."

Interesting stuff!

 

This is what I keep telling my wife, but she's in the "buy it now" category...

 

That's great.. if you plan to work for someone your entire life.

 

What's so amazing about this? Sounds like common sense to me. I guess the amazing part is that common sense isn't so common anymore.

 

These articles should be retitled "How to be Rich on Paper, but still live a Poor existence."

Whats the point of having money if you never spend any of it? (Please note, I am a pathological saver and investor, but there are limits...)

Whats the point of having working hard, putting away money, and yet living the life of a pauper?

Seriously...

The trick is to create wealth, yet treat yourself and reap the rewards of your labor. Living in a 1 BR house, driving a 10 year old American Car, cutting your own hair, and then dying with 3 million dollars in the bank is moronic. Though, I am sure your kids will thank you, and live the life you didn't.

In the above example, you want to keep 1.5 million in the bank, and spend the other half. Be frugal where it counts, but spend money on other things you might enjoy - ferrari's for instance .

There is a vast difference between the guy who has the 3 million dollar house with 17 million in the bank, and the wealthy barber with 40 million in the bank, driving his dodge colt. There is little point in aspiring to be the latter. The money serves little purpose - so why bother in the first place?

 

What kind of barber has 40 million in the bank?

 

Amen! I have too many friends who are in the "Millionaire Next Door" mode. Never do anything, never buy anything, but, they will have a few mil in the bank when they DIE. Woohoo, now there is something to look forward to having.

 

My thoughts are this:

1) Pay off all of your loans
2) Pay off your house (I know that some of you LOVE to finance - so be it)
3) Pay off all of your cars
4) Spend 1/2, save 1/2
5) Smile

The only debt I currently have is a small mortgage, and 20,000$ in student loans...with any luck, these will be paid off in a month or so (assuming this darn commercial property sells )...and then I am completely debt free...and still in my 30's .

Now, lets see. If I keep living a relatively modest life, I can likely put away 1/2 of my paycheck...and throw the rest into the wind (trips, ferraris, porches, etc, etc,etc).

The 1/2 off the top gets placed in mutual funds, NNN properties, what have you. And, any money my wife one day makes in her RE career, is spending money too.

I hope it will feel good going to work and realizing that you DON'T have too. If I lost my job, plenty of cash still in the bank, and commercial properties are throwing off enough cashflow to feed me and my family .

When you house and toys are paid for, a certain calmness settles in.

But gee, if I put 90% of my income away, and lived in a cardboard box...image the size of my bank account ! Nah...

Its hard to fight the urge to get the bigger house (still considering a beach front house - sigh), nicer car, etc. But really, when is enough, enough?

 

die rich, die poor, either way you die, and everyone does.

what you experience along the way is what matters. if have a large number on a sheet of paper makes you happy... so be it. If enjoying things along the way that cost $? so be it.

 

Somehow I think you're missing the point...

 

Perfect response.

If you are able to afford a decent place to live and still save 1/2 of your income, you're in a very very fortunate position. IMO, that is not a realistic prospect for many people.

All the best
Jamie

 

When is enough, enough? When you suddenly realize that you have let the quality time you could have had with your family slip past you. When the only person with whom you shared your Ferrari was your mechanic. You, on the otherhand, seem to have it right.

 

Everybody works for somebody else. And, if you think you own that house of yours, try writing that property tax check for even $1.00 less than the demanded amount. Then, we'll see for whom you really work.

 

My wife and I discuss this all of the time. We are hitting that stage in life where we have "stuff." We are well past working for what we "need."

Its very difficult to change your life's patterns. Successful people are usually Type-A, workaholic types (myself included). It takes some work to get to a nice financial position. To suddenly slow down, and enjoy what you have, is difficult...

Financially, I am doing better than I might have though I would be doing at my age (Still far behind most on this board ). But, there is a high price to pay for it. The days are long, the weekends usually involve either working at my day job or on the businesses...

My wife often asks me, what number will it take to make you happy? There is no number. Wealth and happiness don't correlate... Much like its difficult to teach someone how to make/save money, its equally difficult to get someone who is driven to just sloooow down.

I lust after my college days where you went home at noon, and had an entire unplanned day ahead of you. Those of you in your twenties - enjoy it!

 

Taxes and food bills never go away. Oh well.

Easier to fork over just taxes annually, rather than taxes/PMI/etc...

 

Respectfully, you're right, but only metaphorically. A business owner also works for "someone else", but the difference is that he OWNS the business, and , in this Capitalistic world, an employee, even a surgeon employed at a hospital, can not become wealthy, but the business owner, can, and many times, does.

 

Respectfully, I believe that you're confusing wealth with independence. A business owner can become wealthy, but if that person forgets that he/she works for the customer, that wealth can disappear quickly.

 

"He who dies with the most money is the winner" has always been one of my favorite paradoxes...

 

Funny. When I made my reply, I thought I'd get a lot of knocks. Rather, I have seen some very thoughtful comments. "God bless us every one" (Dickens) I guess life, like a race, has a finish line. You don't know where that is but, you know when you're near. I'm getting near. Many years ago, I planned to have certain things and be financially comfortable. I work on the "comfort level" idea; that I can spend what I want as long as I do not fall below my comfort level. In the US Army, I knew exactly for whom I worked-everyone else. Now that I (includes family) have what I want. The wealth thing, as importance, is ever relative.

It is Saturday. Rain gently falls. The Ferrari is idle in the garage. The Springer and the Corgi observe life through the glass doors. Wife is on her usual Saturday shopping foray. My son and his wife are working on their DC townhouse, as is their wont. I'm here on the Chat. Have I always worked for someone else? Yes. Do I care? No. Am I comfortable? You bet your ass(ets).Cheers!

 

True happiness is life's ultimate reward. How you achieve it is up to you.