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13 things millionaires do that you don’t do
By Anita |
Who knew that one could learn about contentment and frugality from millionaires?
The millionaires that Dr. Thomas Stanley studies in his two books (The Millionaire Next Door and The Millionaire Mind) are first generation millionaires, so keep that in mind. We’re not talking old money or people with a sense of entitlement.
According to his exhaustive research, first generation millionaires tend to do the following:
- Have shoes resoled/repaired. Oops, I never do that. But then again, like most people, I don’t pay $200-300 per pair of shoes, the way these millionaires do, because that’s a lot of money to spend up front. But millionaires know that if you make a higher up front investment, and occasionally get the shoes resoled, then the cost per wear is much less. Even if I could pay $300 without batting an eyelash do I really want to keep a pair of shoes for ten years? Um, I do not. I like the excuse of going out and getting something new every 2-3 years.
- Having furniture reupholstered/refinished instead of buying new. That probably doesn’t work when a lot of your furniture is from Ikea. Ahem. I see their point though. It’s so much easier to pick out new fabric for your couch - the upholsterer will even come to your house - than it is to spend endless hours shopping for a new couch.
- Having clothes mended/altered instead of buying new.
- Raising the thermostat setting on your air conditioner during summer/daytime.
- Switching long distance companies. Thanks to free long distance from cell phones this really isn’t an issue anymore.
- Paying off/paid off home mortgage early. I hope to experience that.
- Never buying via telephone solicitations. Yay for caller ID!
- Developing a shopping list before grocery shopping. I never have to do that because one of my daughters tends to do that for me. At least she sometimes includes the note “buy something for yourself too.”
- Using discount coupons when buying groceries. Rarely do I find coupons for things I actually buy, so I don’t get how so many people think coupon clipping really works for them.
- Purchasing appliances and/or motor vehicles “top-rated” by Consumer Reports.
- Leaving department stores as soon as purchase is made. I prefer not entering department stores in the first place. A couple of weeks ago I was in Macy’s and it dawned on me, for the first time, that I don’t like shopping in department stores. I hardly ever find anything I want. I much prefer entering a small store that tends to sell clothes that I like (Gap and Banana Republic come to mind) and hit the sales racks. And I don’t have to walk past makeup clerks and feel all insecure as I pass by their harsh mirrors and catch a glimpse of my face sans makeup.
- Buying household supplies in bulk at warehouse stores, i.e. Sam’s, Costco. Ugh. I hate shopping at those places and also hate shopping at stores like Target; tromping around a huge store doesn’t appeal to me at all and just lures you into buying things you don’t need. I can go months between trips to Target. I buy most of what I need at the grocery store or online.
- Doing more and more business with a discount brokerage firm(s). OK, I’ll keep that in mind. Ahem.
Maybe you already do or have done a lot of these things. If you have other tips (even if you’re not a millionaire) please feel free to share them.
Topics: Millionaires, Thrift |
November 21st, 2007 at 9:19 pm
Bemz (www.bemz.com I think) do new covers (in different designs) for Ikea sofas and chairs and so on.
And thanks for reminding me that I need to get my shoes re-heeled.
December 6th, 2007 at 8:06 pm
Your writing is very comical–I need to laugh! Coupons are useless in Canada!!!
December 10th, 2007 at 5:48 am
My wife and I are completely on the same page for #8. We have recently started the shopping list mentality and I’ve got to say it has saved a dollar or 2 per month. It’s funny because you usually go shopping when you’re hungry and you buy completely worthless things that sound good at the moment…
First time visitor, nice blog…
December 10th, 2007 at 5:51 am
As one of those “millionaires” you describe, I’d say that some of the items on your list a correct, but many aren’t:
–Shoe repair… this is a non-issue. Millionaires focus on big-ticket items.
– Furniture re-upholstery… again, a non-issue. Upholstery work is quite expensive relative to a new piece, and it’s a once in a decade (or more) decision.
– Clothes mended… No way! Clothes are cheap. It’s a waste of time.
– “Switching long distance companies. Thanks to free long distance from cell phones this really isn’t an issue anymore.”… Wrong again. First, cell phones aren’t “free”. The cost of LD is included. What millionaires are more likely to do is avoid the cell phone altogether, and go with cheaper alternatives. And they may use a cheap phone (ie: Tracfone) for emergencies. That’s what I do.
– “Doing more and more business with a discount brokerage firm” … You’re WAY off here. By and large, millionaires avoid brokers altogether. Instead they invest in a good mix of mutual funds at a cut-rate company like Vanguard.
Nice try, but I think you missed the mark.
December 10th, 2007 at 4:31 pm
Hi Bob - Thank you for your comment. I compiled this list from Dr. Thomas Stanley’s books about millionaires. He has spent his career studying millionaires and most of them don’t fit the stereotype. I don’t have the exact stats in front of me but around 80% of the millionaires in this country are first generation millionaires and most of them are entrepreneurs. They run businesses that seem very ordinary: junkyard, janitorial contracting, plumbing, that sort of thing. Most of them didn’t inherit any money at all and achieved millionaire status by age 50. So they got rich slowly. They are all about frugality. These millionaires show that wealth is not defined by your income but by what you accumulate. Anyway, the books are fascinating and I never would have guessed before reading the books that one could learn about frugality from millionaires. I bought into the typical stereotype. –Anita
February 24th, 2008 at 2:18 am
hmm well as a mom, you truelly MUST go to target, for your baby or kid/kids
so if you are childless, I suppose you could feel that way.
and About the ikea stuff, just cuz that store was designed for people who cant afford “Real Furniture” doesn’t mean you cant make the best of it.
I agree on the Sam’s and Costco dilema.
I hate going into those crowded stores too,
but they contain great bargains, and as a mother of 2, i know what that feels like since my children are snack monsters. So i get really great deals!
April 28th, 2008 at 6:22 pm
Number 11: Never be so foolish as to think you need to purchase anything in a department store. Everything and I do mean everything that is in a department store can normally be found for 1/2 to 3/4 or more off the price that the department store will charge.
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July 29th, 2008 at 5:05 pm
Interesting post. Millionaires are millionaires simply because in most cases, they are VERY smart with their money! However, a lot of the list includes things that every day people do as well.