Real estate investors, take note!

Boyd:

Ben Suarez call it "ornamental magnifiers." Agree with him, I do.

What's really interesting is that even Barnum mentions this behavior in The Art of Money Getting which you greatfully linked to the other day. Of course, in this day we might not think a fake camel hair shawl will impress anyone, but its equivalent might.

If you (as in anyone) is happy to drive an old car and live in an old house or mobile home and live an uncluttered life, no one sees you coming. They leave you alone. You get on with your life making money. Let them buy the depreciating do dads. While you get rich.

HA! One guy I was discussing a business venture with said, "You'll recognise me cause I'll be wearing my Calvin Klein shirt."

OH what a wanker. (Turns out his shirt was an imitation made in Bali shirt - and he was also wearing a fake made in Bali rolex, and hocked up to his eye balls with new car leases and living in an apartment he couldn't afford.) HA!

Know a guy worth about $15mil. Drives an old battered F150, gets around in old shorts and a T, does his own garden work and lives in a non-descript house.

Difference is one guy doesn't care about what you think of him. He just goes about his business. The other guys spends all his money to look the part of something he is not - and that's a game you can never win.

Michael Ross

P.S. I don't think your comments are idiotic.

Hi,

I just wrote and deleted a few paragraphs which boil down to "thank you very much" (and I sincerely mean it).

Best,

- Boyd

I agree with you, in regard to living beneath/below your means. However, the following is ridiculous:

> Know a guy worth about $15mil. Drives an old
> battered F150, gets around in old shorts and
> a T, does his own garden work and lives in a
> non-descript house.

I know a lot of people like this, too. But it begs the question: If you're just going to schluff around like that, then why bother hassling with getting "rich" in the first place?

I also know a lot of very wealthy people who also have the finest cars, houses, clothes and toys. Which would rather be?

Hi,

For what it's worth, if my wife and I ever get independently wealthy we'll keep living like we do now (with the exceptions that we'll upgrade our medical care and outsource more--but not all, by any means--of the grunt work).

Best,

- Boyd

You don't need to be independently wealthy to do that. You just need to focus on making an additional $20K a year.

dno
> You don't need to be independently wealthy
> to do that. You just need to focus on making
> an additional $20K a year.

Check out a book titled, "The Millionaire Next Door". It covers many cases of people who made good on investments, business, and invention, inheritance, or something.

They were content with their home and lifestyle, so why make major changes.

Many of those who are worth millions didn't necessarily kill themselves by work, they made a plan and stuck with it.

You should meet Dick Kaeser, Chairman of Kaeser and Blair. I've been selling for them as an independent agent/dealer for over ten years now.

It cost him a big chunk of change to give the company to his children in advance of the inheritance/estate taxes.

He still goes to work everyday, working at the company that his dad was co-founder of. For the past seven years he was still driving an old second-hand Cadillac he got when he bought his wife a new one. The trade-in value was so low, he kept it for himself.

This past winter he finally got rid of the 20+ year old car and got a pickup that will get him to and from work on the sometimes icy roads around Cincinnati.

He's lived in the same house for years, and saw no reason to change as his fortunes improved. Had no need for all the "trappings" of wealth.

During his time as Chairman, he has seen the company sales increase from less than $6 Million annually to over $61 Million for the past sales year.

He doesn't need to work, but still goes in 7 days per week, and usually arrives before anyone else and turns the lights out after he leaves.

Meet him at the company convention and he'll have time to talk to you and everyone else who wants to visit.

Some people work from necessity. Others work by choice.

I consider myself fortunate to have Dick as a friend and business partner.

Dennis Bevers

> They were content with their home and
> lifestyle, so why make major changes.

I've read it. But it still doesn't answer the question: If you're going to live like a pauper, why bother chasing wealth in the first place?

Most of the people profiled in the book have something fundamentally flawed about them. First, a million bucks isn't what a million bucks was in the 50's. The book really should have focused on those who are worth 100+ million.

Secondly, many of the those profiled were tradesmen, who built up their business. They continue working (I speculate) not because they love it, but because they lack the creative thinking to figure out what else to do. My parents fit into this category. It's amazing when you meet people who have the financial ability to do whatever they want, but still continue working. It's not (for most) because they love working. It's because they are work-a-holics and the thought of NOT WORKING creates internal conflict about having to decide on what to do next. "I'll work till I die, even though I don't need to. That way, I won't have to make any decisions."

But I digress.

The main question I wanted to raise still hasn't been adequately answered: If you're going to live like a peasant once you're financially wealthy, then why struggle to become financially wealthy in the first place?

> I agree with you, in regard to living
> beneath/below your means. However, the
> following is ridiculous:

Know a guy worth about $15mil. Drives an old
battered F150, gets around in old shorts and
a T, does his own garden work and lives in a
non-descript house.

> I know a lot of people like this, too. But
> it begs the question: If you're just going
> to schluff around like that, then why bother
> hassling with getting "rich" in
> the first place?

> I also know a lot of very wealthy people who
> also have the finest cars, houses, clothes
> and toys. Which would rather be?

If you knew the guy you would not think it was ridiculous at all. In fact, you would think it odd if he did buy the new car and show his wealth.

So why bother getting rich just to schluff around? So you at least have a choice.

From your Point of View it doesn't make sense. From his Point of View, the new car, furniture, etc., doesn't make sense.

To each their own. You wouldn't do it. He does.

Warren Buffett drives second hand cars - and the man is a billionaire. His reason makes perfect sense to him, and me...

If I took the amount spent on the new car and invested it, what would it be worth in X years? THAT is what I am really paying for the new car.

Let someone else wear the massive depreciation from new to second hand.

I even apply similar logic to my car registration... why pay one year for $600, when for $310 I get to use $290 I wouldn't otherwise have had, to make more money. And I should be able to turn it into more than $290 in six months.

Next time your electricity bill comes in, call them and inform them you will pay half by the due date and the other half one month later - give a reason if you feel it will help. They will agree and you get to use your money to make more money for an additional six weeks. Better in your hands than theirs, right?

Of course, this only works if you actually do invest the money in some enterprise which makes money - even if it is just ads for your business. Buying a do-dad defeats the purpose.

We each have different points of view. Some like to show off their wealth. Some like to look wealthy even if they aren't. Some prefer to lead a simple life secure in the knowledge they are wealthy.

Other than walking further between rooms, what does having a large house give?

The answer is an individual one.

Why do people buy a new Holden or Ford when for the same money - or even less - they can get a second hand BMW or Merc?

Again, an individual reason.

Millionaire Next Door was mentioned. Not sure if it was that one or the follow up - Millionaire Mind - that mentioned the fireman. Earns $30k a year as a fireman, makes $300k a year from his investments. Keeps being a fireman because he enjoys it.

Many people could not understand that. Many would quit their job. But many people don't like their job. He does. Different POV.

Michael Ross


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