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Why Many Rich People Are Frugal-Unusual mindset of many rich...and why you might want to adopt it
Psychology Today's How To Do Life Blog ^ | March 6, 2015 | Marty Nemko Ph.D.

Posted on 03/07/2015 3:16:45 PM PST by 2ndDivisionVet

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To: faithhopecharity

Yes, I do agree with everything u said, especially about owning being better than renting in the long run.

Good points I agree with!!


21 posted on 03/07/2015 4:48:23 PM PST by yellowdoghunter (Welcome to Obamastan! (Mrs. Yellowdoghunter))
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To: E. Pluribus Unum
Here's the thing too. These people didn't piss their money away in their teens and 20s partying and buying more than what they can afford. They probably held off on going to college, lived in a crappy studio apt eating canned and boxed food.

Now they're in their 30s and 40s, while their peers who partied in their younger years are going through tough times.

22 posted on 03/07/2015 5:03:10 PM PST by Extremely Extreme Extremist
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To: Zuben Elgenubi

I totally agree and in this country it used to be that way before the federal government started taking everything over for our own good. A lot is said about the robber barons to the negative but they put in high tech transportation in places where they dominated, they built roads and built infrastructure as well as employed people. Some just don’t realize that the world operated just fine with a tenth of the size of the government and it didn’t result in rampant death and dismemberment. Kids were educated, we fought and won wars, and managed to build wonderful technologies all driven primarily by the private sector not DARPA or some government agency.

If anything government involvement slows problem solving down. People get in the mindset of waiting for government to rescue them even when they have the means to rescue themselves. I still remember all those flooded school buses in New Orleans. The local government had the means get citizens out of the city but did nothing. This is happening on a micro level in so many lives as they seemingly expect government to provide training and find them a job while they set and watch reality tv and play video games.

This lady is a breath of fresh air and I’d rather she not pay a dime in taxes than have the money go to DC for them to piss away.


23 posted on 03/07/2015 5:15:57 PM PST by Maelstorm (America wasn't founded with the battle cry of "Give me Liberty or cut me a government check!".)
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To: AEMILIUS PAULUS

oil magnate J. Paul Getty, now dead, had a pay telephone in his house.

I’m not anywhere near Getty’s league but I also have a pay phone and a pay washer and a pay dryer in my home. This mad money builds up fast and after several months it’s like an unexpected bonus.

Key is, as someone else here stated, separate needs from wants.


24 posted on 03/07/2015 5:33:08 PM PST by Joan Kerrey (The larger the government, the smaller the people)
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To: 2ndDivisionVet; All

What would you guys do with $60,000 presently invested in stocks; Walmart, GE and Proctor and Gamble?
(no, it’s not me :) )


25 posted on 03/07/2015 6:22:21 PM PST by patriot08 (NATIVE TEXAN (girl type))
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To: 2ndDivisionVet

I always try to warn my younger friends that no one ever got rich by spending money.


26 posted on 03/07/2015 6:33:22 PM PST by Catmom (We're all gonna get the punishment only some of us deserve.)
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To: Catmom

Depends on what you mean by spend, right?


27 posted on 03/07/2015 6:40:05 PM PST by 2ndDivisionVet (The question isn't who is going to let me; it's who is going to stop me.)
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To: 2ndDivisionVet

I mean above and beyond their means, ie, no budget, no saving, no investing.


28 posted on 03/07/2015 6:56:05 PM PST by Catmom (We're all gonna get the punishment only some of us deserve.)
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To: yellowdoghunter
If you have to take out a 30 year mortgage on a home, you cannot afford that home.

Some people want a 30 year mortgage because there are tax advantages and because they can pay back the mortgage over the years with less valuable dollars. They may have more than enough to pay cash but choose not to do that.

29 posted on 03/07/2015 7:05:27 PM PST by ladyjane
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To: yellowdoghunter

Every situation is different. I have a home with a 30 year mortgage. I pay 650 on the mortgage and rent it for 1100.

I’ll stay with it for now.


30 posted on 03/07/2015 7:23:27 PM PST by eyedigress
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To: 2ndDivisionVet
Spending senselessly is the bane of many former millionaires. They think the money will last forever but without good spending habits and decisions, the money just slithers through their fingers and they are broke, right back where they started at.

Classic examples are instant millionaire lottery winners. Many are broke again in no time.

31 posted on 03/07/2015 7:35:45 PM PST by HotHunt
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To: 2ndDivisionVet
she is so frugal that she puts less coffee into the coffeemaker than she should and compensates by, when the coffee is ready, squeezing the filter with the hot grounds in her hand to get the concentrated coffee into her cup, incurring a bit of pain. To save a few pennies.

That's not frugal, that's neurotic.

32 posted on 03/07/2015 8:07:37 PM PST by Jeff Chandler (Doctrine doesn't change. The trick is to find a way around it.)
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To: tbw2

I was the bar manager for 10 years at the top country club in our city. You could always tell new money from old. The guys with old money would break their fingernails picking a dime up off the bar. We had a built in 15% gratuity.


33 posted on 03/07/2015 8:32:07 PM PST by sheana
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To: patriot08

“What would you guys do with $60,000 presently invested in stocks; Walmart, GE and Proctor and Gamble?”

These are blue chips, so if it were me and I didn’t need the cash, and I had some cash stashed, I’d let let it ride.

Oh, I’d dump the GE (I think it’s a terrible stock, I just sold my small amount of shares after many years of it doing nothing and making miniscule dividends) and buy something different, say a utility or an oil company—Exxon Mobil for instance—or even Halliburton, or Altria.


34 posted on 03/07/2015 9:11:16 PM PST by Auntie Mame (Fear not tomorrow. God is already there.)
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To: sheana

Are you defining old money as the people who built it up slowly over a lifetime, AKA the millionaire next door?


35 posted on 03/08/2015 6:32:12 AM PDT by tbw2
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To: tbw2

Old money is typically thought of as being literally old, multigenerational, going back to a time before living memory or close to it.


36 posted on 03/08/2015 6:35:40 AM PDT by RegulatorCountry
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To: 2ndDivisionVet
One of the best lessons I learned was to not buy temporary things at a premium.

Computers, smart phones, cars, clothes etc.

They are not designed to last or hold their value (cars can do such but they must be treated with kid gloves to do so and that usually means you don't drive them much)

So we always buy at wholesale prices buying these things or buy used at much lower prices.

37 posted on 03/08/2015 6:39:25 AM PDT by Mad Dawgg (If you're going to deny my 1st Amendment rights then I must proceed to the 2nd one...)
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To: patriot08
AEP is one stock I would buy. Everyone around here needs electricity. And will do so for the foreseeable future.
38 posted on 03/08/2015 6:42:25 AM PDT by Mad Dawgg (If you're going to deny my 1st Amendment rights then I must proceed to the 2nd one...)
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To: tbw2

Kind of sort of. You could always tell the ones who had worked their butts off for their money vs. the ones it was just handed to.


39 posted on 03/08/2015 7:40:59 AM PDT by sheana
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