On Thu, 31 Jul 2003 20:54:17 -0700, someone wrote:


I gues I disagree with both "sides" here, at least as far as the first
2 posters:

"The Millionaire Next Door" illustrates well the fact that wealthy
folks do not generally live in the most expensive homes. cut

The key here is the use of the word "generally". That and, that cause
and effect should not be confused in either direction. All this says
is that *some* people's tastes didn't change a lot as they got
wealthier. As I recall, the book in question pointed out that a large
proportion of millionaires were people of ordinary backgrounds, who
had built up modestly successful small businesses. They have a few
million, not hundreds of millions.

However, that many millionaires don't live in the most expensive
houses, does *not* mean that none do, or even that the most expensive
houses are not owned by millionaires. "Generally" just means that
most don't; others probably do indeed. And the most expensive houses
likely generally *are* owned by "millionaires", just those few who are
extreme millionaires. How many poor poseurs manage to carry a $5
million to $10 million (or more) house just for appearances? Those
are the "most" expensive homes.

But the cause and effect part is, that while buying a bigger house
will not make you a millionaire, neither will buying a small one and
then waiting for the riches to miraculously appear. Like any delayed
gratification, buying small may give one some more money to invest,
but it is a lot more complicated than just claiming that "millionaires
don't have expensive houses". I seriously doubt that many people
become millionaires on the difference in monthly payments between
their house and the next more expensive one. OTOH a lot of people
have become millionaires through investment in real estate.

This poster seems to me to be exaggerating the virtues of what should
be its own reward.


Most who are "technically" millionaires are cheap pathetic misers who aren't
enjoying a dime they are hoarding away.

Ohhh, dunno about that. Spouse and I have been "technical"
millionaires before (probably not one today, stocks down and business
slow this year) and I don't think we're like this at all. Let's see,
we have a big house, plenty of cars and motorcycles (all bought new),
season ski passes, travel, etc. etc. What does this poster think is
fun, blowing your pay on beer and scratch tickets and looking for
excuses why he is not rich?


If you count the present value of our retirement annuities, assuming
the actuarial life span, we're multimillionaires, by the way.

Mary

Hey Mary, enjoy your retirement!

-v.