You’ve heard it before: Rich people are cheap. It’s either that’s how they got to be rich or how they stay rich. But do they really make big compromises or live like misers? Let’s look at the facts, according to Thomas J. Stanley, who just released his book “Stop Acting Rich: And Start Living like a Real Millionaire”.
- The #1 most popular make of car among millionaires is Toyota–not BMW or Mercedes. Does Honda count (that’s what I own). I’ve actually never been impressed by expensive cars – so why spend big money on them?
- Real millionaires pay about $16 (tip included) for a haircut at a traditional barbershop. I must say, I don’t think this is true for women millionaires – they must be spending more.
- Nearly 4 in 10 millionaires buy wine that costs around $10. So that’s my problem.
- There are currently more than 350,000 millionaire educators (working or retired teachers or professors) This profession is far better at transforming income into true wealth than doctors or lawyers. I was actually happy to hear this statistic. Underpaid teachers are a sore spot with me.
- Only 5.7 percent of all millionaires surveyed nationally paid $1,000 or more for their most recently acquired suit. Suits? I thought rich techno-geeks wore ripped t-shirts and flip flops. Despite the fact that I am not a millionaire, I do prefer to buy second hand clothes. There is more of a variety, you can get vintage and of course, your dollar goes a lot further.
- Sixty-four percent of all real millionaires have never owned a second house. I’ve never been a fan of tying yourself down to one locale in which to vacation, which is probably what happens when you have a second home. So I could live with this one as well.
- Millionaires who didn’t own a boat exceeded those who did by a ratio of nearly 5 to 1. Some years ago, a friend of mine took a class on financial management. He told me Chapter One had one sentence which read “Sell Your Boat!”
- Millionaires live in medium-priced homes. In the U.S., there are nearly three times more millionaires living in homes that have a market value of under $300,000 than there are living in homes valued at $1 million or more.
- The number one preferred clothing brands by millionaire women is Nine West and Ann Taylor. Apparently the Gap and Costco is not far behind. Sure, but you still spend some big money on these clothes if you had a mind.
- Most real millionaires eschew Rolex, Omega and Tag Heuer timepieces in favor of Seiko watches. You’re just paying for the name.
- Those who give away larger portions of their income to charitable causes end up accumulating more wealth. I’ve seen this stat around a lot. Karma? I’ve never heard the reason for this phenomenon stated.
To summarize, rich people don’t get caught in the trap of “Keeping Up with the Joneses”. We are not trying to put you down if you enjoy nice things. We are just trying to put things into perspective. If you are trying to save money or budget, it can be difficult to separate wants from needs.
If Bill Gates drives a Toyota (I actually have no idea what kind of car he drives) then maybe it’s a status symbol to drive an economical car. I do know one thing about Bill Gates: he was known to fly coach on airlines even after his “Richest Man in the World” rating by Forbes.
Have any other stats to share with us? Tell us by leaving a comment!
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Doesn’t surprise me. It clearly describes some dear relatives who I recently found out are multi-millionaires.
Awesome post! It well describes my mother and some of her rich friends, who would complain about a few dollars but give away much more to charity. It just doesn’t make sense. Contrarily, I look rich but have no bank account and have to whine to my mother for financial help. I am trying to change that…. Seriously, if it weren’t for my mother, I would not be able to afford a luxury car, luxury watch, purses, and diamonds. It is not fair to other people who are struggling, which is why I am trying to change my selfish ways. I must stop spending, save, budget, and be frugal!
Interesting article even though it’s somewhat old. However, I notice it doesn’t mention the average price of homes that rich people buy. I think the reason most rich people don’t need cars as a status symbol is because often times their lavish homes more than make up for it. Also, I found it surprising that it listed educators as one of the richest groups. Then again, I’m sure “educators” here is referring to pompus Ivy League professors rather than public school teachers. lol.
My mistake. It seems I somehow missed the home value part. Still, $300,000 isn’t exactly cheap.
this is certainly correct… i know a few… but one that caught my attention the most is someone i know who’s family owns several car franchises and even has a food chain franchise of his own yet still works as an executive in the office and unbelievably drives his box car toyota… it is said, that those who cannot afford these things anytime apparently bothers themselves so much about status quo
Nine West and Ann Taylor is both number one?
I think this is true. I grew up poor and have accumulated about 2.5 million dollars worth of assets and am self employed. At 40 I was driving a Mazda pickup with 200,000 miles on it that I bought used. I’m now driving a SUV with 100,000 miles on it. I shop at the outlet stores for clothes twice a year and spend about $500.00/year on clothes. My house is probably worth about 300,000 and paid for. I eat out about twice a month at Applebees but prefer Healthy Choice frozen dinners. Most of my money is in Real Estate and recently I’ve been buying homes in Phoenix area for rentals. The recession hasn’t changed my lifestyle.