How To Act Like A Millionaire
Most people who are successful millionaires and want to remain in that class of people, are very careful on managing their money.
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Most people who are successful millionaires and want to remain in that class of people, are very careful on managing their money.
Thanks to China, toys and electronics are getting a lot cheaper, while the things people really need are getting more expensive. But at least we will be entertained.
A very interesting article.
I was listening to the βStuff You Should Knowβ podcast last night on the topic of “Do Objects or Experiences Make Us Happierβ. They came to the conclusion that many of have to come to over the years β new toys buy happiness for a while before the fun of them wears off in a number of weeks. They estimated most things are fun for 6-12 weeks, but rapidly get boring after several weeks. Classic materialism.
They went on to note that an experience can provide longer term enjoyment. With an experience, you not only have the experience, but also the memories of the experience. Thinking about it further, they noted that sometimes material things can give you an experience too… like thinking about the good times you had with that beloved car or truck of years ago. The material object may have been sent off to the junk yard and landfill, but good memories associated with a useful item last for much longer.
Anticipation of an experience or an material object can often be a lot of fun too. While our culture rarely puts a priority on delaying material consumption, there are many reasons to think itβs a good thing. Delayed consumption avoids debt, and lets people more time to consider what they really want or need. It also gives people to think about the value of it and enjoy the anticipation. Without spending money, you can dream of better days to come.
I've discovered its a lot more fun to save up for buying toys, then to ultimately go out and buy the toys and use them for actual experiences.
This week is America Saves Week, where people are encouraged to save and invest money for a brighter tomorrow.
The roads are covered with salt, and generally are real cold and nasty. Weβve readed yet another arctic blast thatβs going to jack up heating bills again. At this point though, the days will not be as cold as January-December, and the cold doesnβt bother me as much, so I doubt the heating bill next month will be quite as high.
I delayed paying off my credit card until the end of the month to avoid getting dinged this month for a low bank balance as happened last month. Money is always tight after saving for retirement, my lift kit, and general savings. Iβve cut way back on gas expenses, but there is always bills for supplies, rent, and utilities. This is a three-paycheck month so hopefully I can dig myself out of the hole this month, and maybe even pay back the $200 I loaned myself in December, but hell I donβt know. Itβs going to be tough.
Money is tough to manage, especially when there are so many damn things competing for it.
This morning, getting ready for work, I heard NPRβs Markplace Update, where they discussed young folks expectations and beliefs after the recession. They said a common refrain β that young people are more liberal and believe that luck rather then hard work is the results of their accomplishments. I have younger people say that Iβve gotten where Iβve gotten by luck and not hard-work.
They may have a valid point. But mostly my luck was being born a few years before they were born.
I graduated from High School in 2001, and while the economy wasnβt perfect, the reality is by the time I graduated from college in 2007, we were at the height of the post-September 11th boom. Getting my current job wasnβt easy, and indeed I applied many places, and worked temporary work and did a lot of volunteer work to get where I was. But it was nothing like those who graduated in 2008 through 2011, when the US economy was in the crapper.
I also had the benefit of going to college while state university rates were relatively affordable. Price escalation was well underway by the time I graduated in 2007, but prior to that was quite affordable. The cost of college really started going through the roof as the recession deepened and SUNY implemented what it called βrationalβ tuition hikes, as apparently its rational to continue a high-level of spending on education on the backs of students from working poor families.
When I started at Community College, coming from a working class family, college was free, and even included a small stipend to buy books and pay for commuting to classes. There was good Pell grants from the federal government, and a pretty generous state Tuition Assistance Programs. Both would be cut a few years later, by the federal government and state government. Counties also cut their assistance to community colleges, and they hiked fees to pay for their ambitious building programs and to keep up the quality of their fringe benefits and salaries of employees.
As mostly a commuter student, state college prices were pretty low after aid. But it changed. In 2003, the state raided the finances of SUNY to pay for itβs ever growing budget, To make up for some of the state raid, they hiked and hiked again the cost of tuition, and let fees grow without cap or control. But it still was fairly affordable, living at home, and commuting. I only lived away from home for two semesters in college, and after the tuition hikes and cuts, it was like $5,000 a semester, but by spreading those semesters apart, I was able to pay for cash.
Today, in part because I graduated during a strong economy, I was able to get a very good job. Iβve worked my way up in the company, and are doing fairly well for myself. I had to work for the job, at first an unpaid volunteer, and then by persistent asking for favors from people and making phone calls and interviews. While Iβm sure luck and timing played a role, I think itβs a mistake to say not most of it was my hard work.
I think I worked hard for my accomplishments β my college degree, my good job, my 4×4 pickup truck, and my outdoors gear. It wasn’t given to me by some luck on a roulette wheel. Rather, I took a conservative approach to my finances, and saved money. I worked hard, and the results paid off. But I also received many benefits from government programs like college aid, that made school much more affordable.
I believe if people work hard, they can get ahead. Not all will, and luck and timing have a bit to do with it — but it’s not all. The government can lend a helping hand, but it shouldn’t replace individual ambition to succeed at life.
My experiences are somewhat different then younger millennial who went to college during the post-2008 recession.