In my latest blog, Mr. K mentioned that his frugal wife buys some of her clothes at Goodwill. Do you think that Ms. K is the only person who has a few dollars in the bank and shops at a thift store? Au contraire!
Take, for example, the case of Mrs. Point and her husband. I first interviewed Mrs. Point for The Millionaire Mind. She and her husband live in a 4 bedroom home in one of Austin’s[TX] nicest neighborhoods. “I believe in living in the best section of the city. . . location, location, location . . . . I will do without fine cars [plus a lot of other luxuries], but insist on having the best home possible.”
Mrs. Point never wants to spend big dollars on clothes- they depreciate in value too rapidly. The put a hole in one’s net worth. But she always wants to look well dressed. Here is her solution: “Oh, yes, I wear couture clothes [previously owned] that I buy at the Junior League shop.” [Yes, there is even a hierarchy among thrift shops!]. Mrs. Point also told me that many of the clothing items that she purchased still had the original sales tags attached. In other words, they had never been worn. It seems that Mrs. Point’s clothing expenditures are being subsidized by some of Austin’s “glittering rich” population [see Stop Acting Rich, pp.9-10]. But many Income Statement Affluent types or “aspirationals” [see Stop Acting Rich, pp. 2-6] are also enhancing her ability to transform income into wealth. If some of the previously owned clothing items don’t fit perfectly, she and Mr. Point do what about 4 in 10 millionaires do to solve this problem. They have their clothes altered instead of buying new ones. Money saved this way is used in part to purchase quality stocks. “I am mindful of the fact we live in a time of medical miracles. . . . I . . . invest in stocks related to medicine.”
“We have land. . . [and] mining operations and oil leases. We do not tell our friends about our holdings because many of those we associate with do not have as much as we do.” Could she be talking about the Income Statement Affluent?