What is the meaning of wealth and money if millionaires are frugal?

What is the meaning of wealth and money if millionaires are frugal?

Question by enzo32ferrari: What is the meaning of wealth and money if millionaires are frugal?
In the recent article, http://customsites.yahoo.com/financiallyfit/finance/article-108292-3378-0-the-key-to-acting-like-the-rich-be-frugal it explains that millionaires are frugal.

What is the meaning of wealth and money if wealthy people live like a middle class person?
I take it that most of you would agree that millionaires “sit” on their wealth or invest in the stock market to get more money. But why? If they are going to die and not spend the money, why bother investing it?

Best answer:

Answer by Eddy T
Selfish and stupid to be ruled by money.

Know better? Leave your own answer in the comments!

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2 thoughts on “What is the meaning of wealth and money if millionaires are frugal?”

  • Philosophers have, for a very long time, pondered about the “meaning of life”. Till this day, thousands of years from when the question first emerged, there is no answer and the debate within certain philosophical schools still persists.

    In the same way, there is no “meaning” to wealth. Wealth means different things to different people. Some see wealth as an immediate signal to increase consumption, to lavishly spend on luxury goods and to live like a king. A small minority, however, see wealth as an opportunity to beget more wealth, in other words, to invest. What differentiates the two is that those who consume and “live for the moment” slowly diminish their wealth whilst those who invest are putting off present gratification for future returns. With this said, it is hardly “bizarre” to hear that millionaires are frugal because the very essence of being a millionaire* is to use their financial capital to beget more wealth; their frugality is a consequence of thinking about the future, and not living purely in the now.

    It is for this reason that it is also very awkward to call millionaires “greedy”, avaricious pigs who only care about materialistic items, or so as the quasi-Confucian philosophers would tell us. If anything, millionaires are modest in that the goods that they purchase only take up a relative portion of their income, whilst many others live completely beyond their means, seeing Plasma TV’s and the latest computers as “entitlements” rather than privileges.

    Altogether, then, it is hardly surprising that the article is pointing out the frugality of millionaires. In fact, it is pointing out the obvious, and it would not surprise me if this author is on his own path of “getting rich” by selling ”self-help” books which merely point out universal, unbelievably apparent (or should be) axioms. Reminds me of Robert Kiyosaki’s “Rich Dad, Poor Dad”.

  • They live comfortably and within their means. Most of the millionaires that go out and buy the Ferrari’s and build the multimillion dollar homes end up broke within a couple of years. This mostly happens when a poor,uneducated person becomes very wealthy, very rapidly. This quick move up in socioeconomic status often makes the person spend as much money as possible in order to make up for everything he or she did not have in the past. To get back to the question; you must also realize these people are not just “sitting” on top of this money. They, more than likely, have it invested in the stocks, bonds, etc. If you read the article thoroughly, the interviewee states “…to live below one’s means.” This is how the rich stay rich. They are being financially smart. They tend to not be, as what he states, hyper consumptive. One of the financial tenets is always have enough in your savings account to be able to survive six months at the same standard of living with no income. Most people do not live by this rule. So when people read this article they may be surprised to find that most of the affluent live middle class lifestyles.