People often ask me if the consumption lifestyle of their children or grandchildren will change radically if they receive a sizeable inheritance. If a child is raised in a family environment which reflects the habits of the millionaire next door, he or she typically adopts the same lifestyle. Statistically a frugal 21-year-old will continue to be frugal …
The topic of income inequality is a popular one. It is true that the bottom one-fifth of “income producing” households in America is accounting for a smaller and smaller percentage of the total income. Also, the top one-fifth continues to account for an increasing proportion of the income pie. How can it be that as the …
What is the meaning of success? Some define it in terms of occupational status, income, net worth, power, and even the size and location of one’s home. But these factors are not necessarily the ones held by Amy Chua who wrote an article, Why Chinese Mothers are Superior, in The Wall Street Journal. Ms. Chua claims, “A …
“Chinese Mother”- Not of the Millionaire Next Door! Read More »
Recently, Karl Sakas wrote an interesting blog, Stumbling Onto The Millionaire Next Door. I got a million dollar surprise when I picked up my dry cleaning . . ..Waiting in line to pay $1.79 per shirt, I noticed an unexpected envelope on the counter. The return address had a “Milliman” logo. That wouldn’t mean anything …
Now that the holiday season is in full swing, it might be a good time to reflect once again on the ways and means of the millionaire next door. This came to mind after I observed a woman who was trying her best to pay for a down vest at a recreational equipment emporium. First she …
In my last blog I profiled the “used vehicle-prone shopper” category of the millionaire next door population. I also briefly mentioned an engineering professor who detailed his latest car purchasing experience. “The sight of cash has a powerful effect on some people. Accordingly, I took $2,000 in twenty dollar bills from my emergency cash reserve. …
Motor vehicles today are more expensive than ever. You would think that it would be just the opposite since the economy is currently floundering. In 2006 Americans purchased approximately 16M new passenger vehicles. But not this year. Now it is more like 10-12M. Manufacturers have significantly reduced their production so there are fewer “leftovers” and other traditional …
Not all of the interesting information in the Forbes 400 issue deals with billionaires. For example, in Matthew Schifrin’s article, he profiles several amatuer investors who became millionaires by significantly outperforming the market. One of these investors, not surprisingly, is a civil engineer and is pictured standing next to his no frills Ford 150 pickup truck. Remember that Ford was the #1 make and …
Millionaires: Firefighter, School Bus Driver, Engineer. . . Read More »
Have you ever wondered about why so many millionaire next door types understate their considerable socioeconomic success? They don’t have a strong need to display their economic productivity by buying luxury products and expensive homes. In a major way, their real achievements are the badges of their success. For example, financial success, especially economic independence, is its own …
It’s not too early to make holiday gift giving plans. Is there a millionaire next door on your list? If so, I have a hint for you. I was reminded of this yesterday when I stopped by my neighborhood McDonald’s for a McCafe coffee. There were banners hanging all over announcing Monopoly is Back along with …