Millionaires Who Are Frugal When They Don’t Have to Be

[jeffrey]

...You wouldn't know it from their shopping habits, but Ms. Marchi, 56, a senior health care executive who has run hospital chains, and Mr. Weidner, 57, a senior researcher at a large nonprofit company, are worth millions of dollars. And while they own three homes — condominiums in Naples and Boca Raton, Fla., and a house in Lebanon, Pa., where they grew up, none of them are huge. One splurge is an annual trip to Italy.

The couple are the face of the self-made millionaire who has the financial security of true wealth, not the fleeting rush of sudden riches. While the popular perception of millionaires is that they are more ostentatious than frugal, recent research shows that single-digit millionaires, at least, are generally far more mindful about how they save, spend and invest their money.

"It's about paying attention to what makes you happy and not just doing what our society tells us to do," said Donna Skeels Cygan, a financial adviser in Albuquerque and the author of the book "The Joy of Financial Security...

http://www.nytimes.com/2015/06/06/your-money/skimping-on-the-splurges-even-as-a-millionaire.html?_r=1

[elessar78]

Great post/article.

In many ways, that's the life I aspire and am building toward. I've really racked my brain on material things that I would want and I can't really think of anything. Maybe a nice vacation somewhere warm when it's the dead of winter here in Pennsylvania but I can live without that (not annually). I already do the things I love, so I don't feel deprived.

Last November our Jeep was starting to show it's age after 130K miles, so I "splurged" for a low-mileage used (28K miles) vehicle. It was under $20K and it's probably the nicest car I've owned and I'm happy with it.

Maybe some nicer tools, so I can fix up the house better (which is something I've come to enjoy). I'm still rocking a 15-year old, corded drill. I still have to use a chuck to switch drill bits and screw heads. But even that upgrade to a new one is $50?



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after posting my wife told me to pick out my Father's Day present. so I did the my drill upgrade. $28 bucks.

[Fishindude77]

The other side of this is many "overnight big shots" driving around in the fancy expensive cars, taking high dollar vacations, putting their kids in expensive schools and programs, and living in new homes in the nicest neighborhoods are simply getting by on cash flow and haven't really accumulated any wealth. Nothing is paid for and everything is on credit. Shut off their income stream for six months and it's fire sale time.

A 70ish friend of mine who is self made and rather wealthy has always driven pretty junky cars. When I asked him why he doesn't buy himself a new car, it's almost like a 'badge of honor" thing for him now. He says, that's all he used to be able to afford and he got by just fine while his counterparts were borrowing money for fancy new ones. Now he says he gets a real kick out of pulling the old beat up Chevy in and parking beside their BMW at the golf course and doesn't much give a rip what they think about it because he knows he could buy a BMW cash anytime he wanted and they likely have a payment book 1/2" thick for theirs.

[sj11041990]

Very interesting read, thanks guys!!