My Inner Millionaire

Monday, April 19, 2010

We're cheap. Or frugal if you want to be pc about it.

Long before it was cool to be a frugalista I was one.

I don't own a flat screen TV or a Wii, but I contribute to my Roth IRA and my kid's college funds monthly.

Basically, I think my money looks cuter in a saving account than spent on expensive clothes.

I just finished reading a book that makes me feel better about my inexpensive wardrobe and the fact we're a double Toyota family (as opposed to all the BMWs and Lexus' cruising around my neck of the woods).

It's called "Stop Acting Rich and Live Like a Real Millionaire" by Thomas J. Stanley.

The author conducts surveys of millionaires and asks them all kinds of questions, such as what brand of suits they buy, what type of cars they drive and how much did their home cost.

Want to guess what type of car most millionaires drive? Good old reliable uncool Toyota.

Turns out most people who live in million dollar homes aren't actually millionaires. And more importantly aren't likely to become one even if they make good money because they are spending so much maintaining their lifestyles.

If you're looking for encouragement to stick to a budget this is a great read. I'm probably not doing it justice, but it was very interesting and definitely worth the time.

Have a great Wednesday folks!

P.S. I'd like to thank Tales from My Head for:

22 comments:

Cheryl April 21, 2010 at 4:27 AM  

We've been on a budget for 23 years. The best part about that is that we never have had those moments of panic when the semi-annual tax bills, insurance bills, etc. come around. The money's in the bank. Keep rockin' the budget. It's the best peace of mind money can't buy.

JP April 21, 2010 at 5:23 AM  

I've always said if I win the lottery the car I'd buy is a VW Passat.

Nice but not extravagant.

mama-face April 21, 2010 at 7:47 AM  

congrats on the award!!

I suck at budgeting so I while I probably need the book more than anyone I think I will go shopping now. :)

Kelly April 21, 2010 at 9:55 AM  

I'm a certified CHEAP person, too. Solidarity.

Christiejolu April 21, 2010 at 11:53 AM  

Well then I am going to be a major millionaire. My house is too small and not very exciting and I drive a Kia. I do love my car though!

That corgi :) April 21, 2010 at 1:02 PM  

congrats on the award and good for you for contributing to your IRA and the kids' college funds monthly; that will be so worth it down the line. My pastor at church said so many people live at 108% of what they make (no wonder we have this mess we are in economically); his advice is to live on 80%, give 10% away (if one wants to do that type of thing) and keep 10%. Makes smart money sense to me


betty

Mrs.Mayhem April 21, 2010 at 2:16 PM  

Good for you, Scarlett! It can be really hard to be frugal sometimes.

We're fairly frugal, too (though I call my husband cheap). There's always room for improvement, and we've been loosening up a little too much lately. It is difficult to keep a tight rein on finances - money can slip away so easily.

At 35, I wish I could have a financial do-over for the past 10 years of our lives. We can afford everything we have, and we do contribute to savings every month, but I would definitely prefer a cheaper house and car.

Jenners April 21, 2010 at 5:37 PM  

I think it is great that you contribute to your IRA and college funds!!!!! Well done. And I do think that most millionaires are frugal ... you don't get that way by accident.

Jeanie April 21, 2010 at 6:11 PM  

Give yourself a big pat on the back. Starting to save when you are young is the best thing you can do for your future. It really makes a difference when you start early.

T.J. April 21, 2010 at 7:00 PM  

ooh, I'll have to get my hands on that Stanley book. Thanks for the tip! Yay for your bloggy award :)

mosey April 21, 2010 at 8:48 PM  

My dad taught me to balance my checkbook when I was 12. I get edgy and nervous if I have to spend more than $50 on anything other than the necessities. I'm with you.

LadyFi April 21, 2010 at 11:16 PM  

Good for you for saving... We only have one car and that's a Citroen. Next time round I want to get something smaller and greener though... Can't wait for real electricity cars to come onto the market!

Patty - Why Not Start Now? April 22, 2010 at 6:31 PM  

Yeah, I've heard this before, that aside from the spending culture of wealthy celebrities, ordinary wealthy people don't flaunt it. I like that. And believe it or not, I'm one of those people who think Toyotas are very cool! So go figure.

Fireblossom April 24, 2010 at 2:22 PM  

Congratulations on the award! I got that one too, but wasn't about to do any of the things that went with it!

just making my way April 24, 2010 at 5:37 PM  

You know that old adage about marrying someone who is good with money? Both my husband and I needed to marry someone like that...didn't really work out that way. We suck at it. We are trying to get better - constantly.
So thanks for the recommendation, I'm always looking for help in this particular area!

Stacia April 24, 2010 at 8:07 PM  

Cheapskates of the blogosphere unite! (Got any coupons to swap??) => My husband is big into Dave Ramsey. I'll have to share this article with him.

Feeling Just Right April 25, 2010 at 7:39 PM  

Love the sound of the book. Very cool. Go toyota!

p.s. congrats on the award!

sheila April 27, 2010 at 3:25 AM  

We dont have a flat screen or a Wii either, lol. My mom has a flat screen and had to have it replaced twice in a year. Too many problems for me.

Jannie Funster April 29, 2010 at 7:39 AM  

I loves my used Honda minivan, my limited amount of outfits, and my 2 pairs of shoes. :)

Our house is worth 7 times what my hubby paid for it in '88, 'cause he upgraded it the good old-fashioned way by adding on, bit by bit by painstaking bit, with his own two hands. I can't freaking imagine having bought it outright turn-key, and owe our soul in a mortgage we'd struggle to come up with each month. Plus taxes! Plus insurance! Plus upkeep. Oy.

xo

anymommy April 30, 2010 at 9:14 PM  

Our budget drives me crazy, so thank you for the encouragement. I know it's important.

Jeanne May 1, 2010 at 3:11 AM  

Last winter we finally moved our 401Ks and IRA's from my (totally inexpert) management to that of a professional. And were thrilled to learn that, in our mid-50's, we've got retirement covered.

I see all kinds of stuff I'd like to have, but very little I'm willing to spend money on....

Sherry C May 7, 2010 at 6:51 PM  

Just came here from "confession of a closet hoarder" your posts are very enjoyable. I'll be back.

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