- The Three bs
- Budget Aids
- Two Motivations for Buying
- Buyer's Homework
- Shopping Prices
- Negotiating a Better Deal
- Common Sense Borrowing
- The Bonus "B"
- Big Hat No Cattle
- Ask for Free Stuff!
- The Debt Book
Low Consumption Living
From the opening chapter of The Millionaire Next Door: The Surprising Secrets of America’s Wealthy. By Thomas J. Stanley, and William D. Danko. A quote worth hanging on your financial goals wall:
“These people cannot be millionaires! They don’t look like millionaires, they don’t dress like millionaires, they don’t eat like millionaires, they don’t act like millionaires–they don’t even have millionaire names. Where are the millionaires who look like millionaires?”
The person who said this was a vice president of a trust department. He made these comments following a focus group interview and dinner that we hosted for ten first-generation millionaires. His view of millionaires is shared by most people who are not wealthy. They think millionaires own expensive clothes, watches, and other status artifacts. We have found this is not the case.
You don’t have to read this funny and informative book to get the point. Research shows that people who have a lot of money don’t live like they have a lot of money. They have money because they live low consumption lives. They drive older cars. They wear simpler clothes. They wear cheaper watches. They live in more modest homes.
How can you practice low consumption living?
Shop smarter at the grocery store: Buy off brands, learn to cook from scratch, shop prices, look for sales.
Maintain your vehicle. Shoot for 150,000 miles. Don’t worry that you don’t drive a status vehicle. Better to have secret status in the form of liquid cash than to display an inflated status and be strapped for cash!
Buy clothes that last and which have a lasting style.
Eat out less.
Pay attention to your shopping habits and make sure you are an Intellectual spender and not an Emotional spender.