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Clothing and the rich - Page 2

post #16 of 157
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I never use credit.  Why should I pay someone else interest to loan me money for things I do not need?  My debit card has a visa logo, and I can rent cars and buy airfare with it, so why use a credit card?  Doesn't make sense to me.  As for building my credit - I don't need a house.  I currently rent an apartment with my girlfriend.  We each pay $425/mo. in rent.  It is tiny.  We do not care.  We are never home.  When we need to buy a house, we will either pay in cash, or use the financial services of the firm we deal with.  They have excellent lending terms if we need to borrow.... And every millionaire I know has at least one suit worth $3k or more.  It is not a luxury.  It is a necessity if you are leading any serious business requiring meetings with clients and vendors.  Unless, of course, you like to be taken as a fool.
Wise words about the use of credit. Speaking of millionaires and suits, no millionaire I know would ever consider owning a $3000 suit (I own a $2000 Oxxford, but I only paid $20 for it). It depends on your millionaire, of course, and how they made (make) their money. The ones I know are not corporate types at all.
post #17 of 157
this book looks at a pool of all millionaires - that is, the thousands of people who have a million dollars. the vast majority of them, as somebody mentioned, are small business owners or retirees. the richest person I know personally, who has a very large upper east side brownstone and several very nice pieces of museum quality art, invited me to a small party in december and asked me to bring peanut butter sandwiches, everybody who was invited was asked to bring something. her son, who is worth more than I would like to think of, wears a 20 year old simple rolex oyster and drives a volvo station wagon. I read an article with john travolta serval years ago that made an impression on me. he said that he was a millionaire who lived like a bilionaire - not by wasting money but by making due on cheaper things, say, the less flashy luxury stuff.
post #18 of 157
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But what's the point of having money if you don't spend it?
I guess that depends upon what you mean by "spend". Me, I "spend" most of my take home on stocks, mutual funds, bonds, and real estate. Buying a stock that appreciates 25% a year for ten years gets me off infinitely more than any piece of instantly depreciating clothing. (And I LOVE clothes.) The way I look at it - dollars to me are like an soldiers - out there capturing more of them - to capture more of them. The message - DONT KILL OFF YOUR ARMY.
post #19 of 157
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bonds, and real estate.  Buying a stock that appreciates 25% a year for ten years gets me off infinitely more than any piece of instantly depreciating clothing.  (And I LOVE clothes.)
If you could buy a stock which appreciate 25% a year during ten years, you wouldn't be there talking about clothes.
post #20 of 157
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Here is what I do, and how I started. When I was fresh from college, I put on my W-4 that I wanted the IRS to withhold $500/mo. from my check. At the end of my first tax-year, I got a return of approx. $7000 (withholdings and refund, I also claim 0 exemptions and am agressive with my 1040-A). I used that money to buy a used Lexus ES300 (from an estate sale), which I sold one year later for $9500. The second year I continued to use the IRS withholding mechanism, so I had a total capital value of approx. $17,000 after two years of saving
While I think most of the advice you have posted is excellent, this doesn't make sense at all - the "IRS withholding mechanism" is an interest-free loan to the government. It's great to save money, but you are much better off putting a set amount of every paycheck into some type of savings or investment mechanism (I have my checking account set up to deposit a certain amount in my Ameritrade account every month) rather than letting the IRS hold it for a year.
post #21 of 157
I'm guessing he used that mechanism because at the time an online banking autowithdrawal system was unavailable.
post #22 of 157
Also when you are first out of college if that money is in your posession it is going to be a LOT easier to spend it than it would be to save it - let the government do it for you until you can develop a more frugal lifestyle.
post #23 of 157
Thread Starter 
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I bought myself a Mercedes SLK-350 because I liked it.  I spent the next few days driving like an idiot, and showing it off to a bunch of people who didn't care.  It was a blast.  The car is a lot of fun, and so it adds to my quality of life.  However, I bought the car with cash, and I make monthly payments (to my fund manager) for what I would have paid on a loan (including interest).  I will sell the car in a few years and come out ahead (with the interest earned on my payments).
You lost me as to how you will sell the car in a few years and come out ahead. I understand the part about paying in cash, so you don't need to pay interest. But, if we're talking about buying a new car, then the deappreciation is the most in the first few years. If you kept driving the car until it finally kicks the bucket, you'd have been able to spread out this deappreication over the lifetime of the car. Or, was this car also used when you bought it?
post #24 of 157
Thread Starter 
I don't remember everything about their methodology, but it had something to do with housing to find the millonaires. But, I do remember that once they found these millonaires, they sent out the surveys to these people. And, then, they would give a dollar if they filled out the survey or give a couple hundred dollars if the millonaire agreed to a sit down interview that lasted several hours. My problem is that by doing this, you're going to get more penny pinchers than people who spend their money. You'd have to be to fill out a survey with almost three hundred questions for the sake of a dollar. Same logic applies to sitting down for the interview.
post #25 of 157
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The whole book is quite laughable.
I really fail to see how it is. I read both the "Millionaire Next Door" and the "Millionaire Mind" when I was teenager and found the points that it advocated to be sound and realistic. It dispells the popular notion of the typical millionaire lounging in a pool somewhere while "Bunny" fetches the kids in the Benz from prep school.  If you want to build your wealth you have to make sacrifices in the short-term for long-term gain, something Western society is really bad at promoting. As for conspicuous consumption, the wealthiest man I know, who would definitely rank within the top 100 wealthiest people in Canada, drives a 1992 Buick and is originally from Moose Jaw. A.
post #26 of 157
I don't think it's fair to use the clothing example in regards to millionaires because clothing doesn't mean a lot fo many people. Each person has things that they spend quite a bit of money on, and others will look upon them and not understand how they can do so. For example, a millionaire might scoff at the idea of $300 shoes, but then spend $90,000 on a custom motorcycle.
post #27 of 157
My millionaire uncle is absolutely disgusted that l spend over $50 for shoes. He wears old shabby 25 year old suits to the office, even army clothing. He also has a 20 year old rusted out car, but he has a big observatory in his massive back yard and a state of the art $50,000 toilet system. One of my millionaire aunties owns several big businesses and has real estate all over the world yet she works as a cleaner part time to fill in her empty day. She hires managers to run all of her affairs because she has virtually no education. She doesn't dress well at all, she saves all her money. l have seen her monthy pay cheques, $100,000 for this business $$50,000 for another business. Half the time she just leaves the cheques laying around in her home office (that's how l know). You work it out, l can't.
post #28 of 157
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My millionaire uncle is absolutely disgusted that l spend over $50 for shoes. He wears old shabby 25 year old suits to the office, even army clothing. He also has a 20 year old rusted out car, but he has a big observatory in his massive back yard and a state of the art $50,000 toilet system. One of my millionaire aunties owns several big businesses and has real estate all over the world yet she works as a cleaner part time to fill in her empty day. She hires managers to run all of her affairs because she has virtually no education. She doesn't dress well at all, she saves all her money. l have seen her monthy pay cheques, $100,000 for this business $$50,000 for another business. Half the time she just leaves the cheques laying around in her home office (that's how l know). You work it out, l can't.
Marc, we do so enjoy your tales of your millionaire family, including yourself.... Why haven't you yet flown in a Lobb/Cleverley/Berluti/etc shoemaker? You are rich enough (according to you). Many of these people do make trips on the behest of many rich clients.
post #29 of 157
Someone once told me that the posher the family (in England) the crappier the television, both in quality and location. They say the inverse applies as well. From limited exposure--i.e. a few posh country house--it seems to hold water.
post #30 of 157
T4phage is a trouble maker and a troll. Honestly, you remind me of a little kid that is a brat. l find your internet stalking quite amusing. Grow up troll.
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