encore888

http://www.chicagotribune.com/busine...i-business-hed

rai

double post

rai

makes a lot of sense to me, however I have not read the book. But IMO $1M is not a lot of money. Are they talking about $1M net worth? with most houses worth half a million dollars and if you have a decent 401K etc. it's possible there are a lot of 'millionaires' who aren't particularly well off.

I'm not saying it's wise to spend a ton of money on a car or several cars. but the point is that many people make $500K+ a year and for them something like a 7-series BMW would be similar to a new Corrola to somebody making $50K per year.

I know several people who are very rich ( $20M++ I'd guess ) who don't drive flash cars, but just b/c they don't spend money on expensive cars is not the reason they are wealthy, they make $800K ++++++++ per year, so the point about the car is not an issue.

I also know a person who makes $700K+ per year who drives a new 7-series or new A8 every other year.

krazykanuk

So they have the money but may not necessarily use it on nicer cars?

IMO, life is short. If you have the means, go ahead and buy your 7 or A8. You only live once.

encore888

Or an LS.

JessePS

Interesting read.

One thing many people are millionaires from a net worth point of view. If you have over a million in financial assets, your pretty much considered a "true" millionaire.

One thing I wish I knew the number of people that are millionaires from net worth and not financial assets.

No use to go on... its a car forum

ff_

Read this book, and you'll understand why millionaires are more likely to own a Ford or Toyota. It's because they place more value on wealth than materials things. Which, incidently, is how they became millionaires in the first place.

I have a copy of the book, if anyone wants it.

rai

Not to get all preachy, but I think it's important for people to realize how easy it is to become a 'millionaire'

There are a number of money calculators you can fool around with, but let me give one example.

If you are age 21 and put $214/month till you are 62 (41 years) at 9% (tax deferred account) rate of return and you will have $1M in savings.

If you put off saving till you are 31 years old you'd need to put in $546/mo till you you are 61 years old.

LXotic

Hmmm that doesnt seem so smart about being a millionaire and buying a TOYOTA

ff_

LOL...

Like I mentioned, that's how a huge number of people became millionaires in the first place. By buying inexpensive cars, clothes, homes, etc. How is that not smart??

(unless I misunderstood the intention of your comment?)


Well, to be fair that isn't exactly the point. Yes, you can save a million dollars by the time you reach 62 years of age, but a million at that point in time is going to be like 100K at age 21. Still a nice chunk of change by today's standards, but not enough to live on once you retire. If I reached 62 and only had 100K to live on for the remainder of my life, I'd be living in poverty.
The point is that these people achieve millionaire (+) status at an early age, through spending and investing wisely. By not living extravagantly, driving a Lexus with a $650/mo payment, living in 500K homes, and eating out every night.

Gojirra99

I guess what he's saying is what's the point of becoming a millionaire if what you have is a number in your bank account/portfolio, but you can't even enjoy something more luxurious than a Toyota & other luxuries.
You don't have to be a millionaire to be happy as long as you are enjoying what you think are the pleasures of life & is financially secure & not living beyond your means.

I do think you have to differentiate between people who take different paths in becoming millionaires. Those who are frugal ( & drive Toyota's etc.) are probably those that do it the hard(& slow) way. Whereas those who became millionaires very quickly from very high paying jobs, starting fast growing businesses & leveraging investments etc. are those who probably will spend their money on luxury more freely. I guess the former type probably constitute the majority.

You can also spend money on luxury items without being wasteful. Don't buy luxury items you don't need, like more than one home, multiple designer clothings that you don't wear more than once, excessive expensive jeweleries, trading multiple expensive cars every year (or even every few months, I've known a guy who does that).

I guess buying a Lexus & keeping it for at least 5 or 6 years or longer is OK.

ff_

Certainly. Though I'm thinking that those people are the type that are perfectly happy driving a Ford or Toyota. They probably don't care how a car "feels", how fast it is, or what it looks like (two prerequisites for owning a Ford or Toyota anyhow... ). To them, having the number in their bank account, and keeping more of what they earn instead of giving it to some conglomerate store chain or to Uncle Sam, might be all the glamour they need. That's what turns their crank, so to speak.

GS3Tek

iTrader: (8)

There's a huge difference b/t penny pinching and being frugal. If you have the money and can definitely spend it without even breaking the bank, then why not? What's the point in making that money and let it sit under the mattress?

I know people who have the $$$$$ but are just tooo cheap. They wanted an S500 but bought an E320. Everytime I ask they just say it's at home. One time, I saw him park far away (to avoid us) to walk to the bank.

But why a toyota? It's more expensive than hyundais/kias/nissans

Pearlpower

iTrader: (2)

The saying goes, "Poor people buy cars to impress others, rich people care less about impressing others." Or something similar. Does make some sense though not always true.

Mr. Jones

My cousin turned just 32 and paid cash for $800k worth of properties. He bought a 5er in 2001 then a Civic in 2006