This article began by writing about how to save money in these tight economic times, And, I realized that pinching pennies and being a millionaire are interrelated topics.
I have known people that lived through the Great Depression. They remember it well. These people learned to pinch pennies. And many have become people of wealth, that live modestly.
When I write this list, I reminds me of things my grandparents used to do.
They bring their styrofoam coffee cups home from fast food restaurants to use and reuse them.
They wear the same pair of shoes for years.
They don't wear a different outfit everyday..
They drive a modest car, with no car payment.
They shop with coupons.
They shop for items on sale.
They color their own hair.
They cut their own lawns.
They clean their own homes.
They don't eat lunch out everyday.
They don't buy drive through coffee.
Their habits can be closely followed. And they have a nest egg to show for it.
It often surprises me how careless some people are with their money. They have no regard for it.
Yesterday, I went through the drive through at a fast food chain restaurant. My bill totaled $3.37. When I got to the window I handed the cashier $3.50. She looked at me and said, "You don't need your change back, do you?" Was this something new? I wasn't sure that I heard her correctly."Excuse me?" She repeated, "You didn't want your change back, did you?" "Yes, I would like my change back!" 13 cents a day is the equivalent of $47.00 at the end of a year!
Often times when my family and I are cleaning a rental house after a tenant moves out we find money on the floor. And, over the years I have found that the tenants that had a difficult time paying their rents are the houses with the most money left on the floor, Interesting correlation? Maybe so, but not really. In some houses we have picked up as much as $10.00 in change on the floor!
I can remember my grandpa telling me, "If you have no respect for money, then you'll never have any!"
That is why they are rich. They pay attention to the smallest details. That ensures success.
Hi Jim, So, very true! They do indeed pay attention to the smallest details. They know exactly where every penny of their money is. Thanks for stopping by!
I met a fellow the other day, a potential investor, he dressed well, was very unassuming, after the meeting, I learned that this fellow is extremely wealthy...I don't how I expected him to act, but he was very laid back...and was not pretentious in anyway...he even told us a story about his favorite shirt...he bought from Walmart.
Sandy great point. I think that more people (Myself included) need to think more about money. I just read Total Money Makeover by Dave Ramsey, you should check it out. It falls in line with what you have said and it really opened my eyes.
Konnie, I love to hear about the wealthy people that shop at Wal Mart. I think true wealth doesn't need to be shown off, it just "is". You never know who you're talking to, do you?
Hi Sean, I would love to read Total Money Makeover. I will check into it. I think we must all be cautious with our money as we don't know what tomorrow will bring.
Hi Sandy. I'm not so sure I agree with you about the millionaires pinching pennies, but I know I DO! BTW, I'm nowhere NEAR millionaire status!
I completely agree that the rich have their money because of how much they HAVEN'T spent rather than how much they've earned. I'm in the process of teaching my kids the power of money - how to earn it and keep as much as possible!
My family is known for not emptying their pockets before anything goes in the washer or dryer. I pick up some much money in the washer or trapped in the drayers door from these kides. Told my daughter the secret of found money and she said, "Mom this is more than you give me as an alloawance" lol.
I hope one day, they don't need that change that they left around.
Another excellent post Sandy. I especially how you brought in the time value of money. Now just add a paltry interest rate and you have more.
Only a tiny percentage of millionaires get that way because of their own doings. The majority inherited the money and did absolutely nothing. I do not think we should admire rich people either. Money does not mean you are smarter or a better person or have any more ability to be frugal than anyone else. This is a myth perpetuated to maintain the status quo and simply class stratification.
the new drive thru saying:"you want change with that?" :)
Hi Pat, I know many wealthy people that pinch pennies and live modeslty, I know others that spend like there's no tomorrow. I suppose that everyone is different.
Hi Kathy, I think we must teach our children the value of a dollar while they're young. Otherwise, they have no concept of money. Great job! If I ever need to borrow money, I know exactly where to get it. I go to my 13 year old teenage and she lends it to me, WITH INTEREST (good for her). She understands the power of money TODAY!
Hi Nancy, Growing up I had an older sister that regularly went through the laundry hamper before wash day. She claimed all the change in the pockets as hers! She used to go through all the furniture too, especially the chair my father sat in. We used to laugh at her and throw money at her so she would go and chase it. Well, today we're not laughing anymore!
Hi Fred, As always I love you stopping by to chat all the time. So glad that you're here. Thanks for the compliment and have a great day!
Hi Eau, Good points in your comment. Only a small percentage of millionaires are self made - less than 5%. I do not think that we should idolize the rich either. I do not advocate that. I admire those that have invested a lifetime of hard work and sacrifice to be able to sit back comfortably and enjoy their retirement years.
Hey Joseph? How are you today? I almost fell out of my car when the cashier asked me if I wanted my change back? Maybe I really am cheap.-LOL
As a typical 20% tipper, I have never been asked if I wanted my change, but if so, that would be a no-tip situation. Gratuity is never mandatory, unless it is a pre-arranged dinner party.
Hi Thomas, I was a bit taken aback to say the least. Your change should automatically be given to you. If you're in a restaurant, if you decide you want to leave it on the table, then that's your choice!
Sandy, I love this post! Without my loose change, how would I ever find parking meter money? But seriously, I think a lot of us are pretty careless about our finances, and it's time to re-program ourselves!
Sandy, That's the reason why they have money. I have a friend who watched her pennies but mind you, she got plenty. And yet another friend loves to splurge and she does not have any. When her mom died, she inherited the house with no mortgage and within five years, the house is refinanced to the hilt. Everybody is different.
Hi Patricia, I think that we can become careless with our money. And I think that we must always keep ourselves in check. It is the bad times that really make us relook at our financial situations, isn't it?
Hi Rosalinda, I have watched people count every penny they've had and they still have them today! Others just spend and spend and have nothing to show for it. It is very sad!
Yes thats how my DaD did it... however my cousin thinks Big and never saved his pennnies and he has 10 times as much .....
Hi Carl, That's interesting that your cousin never saved, but perhaps it's his BIG visions and BIG dreams turned into reality that transformed his life into what it is today! Well, kudos to him - that's super.
Thanks for your feedback have a great day
Sandy,
I'm pinching those pennies sooo hard you can hear them squealing all the way down to Florida!... I'm also discovering new ways DAILY to SAVE those pinched pennies! THINK before you spend!
Thanks for sharing!
Kathy Opatka, REALTOR- Ocean City, MD
Hi Kathy, Shhhh, I'm listening...oh now I hear them...your pennies squealing -you go girl - good for you! I am always looking for ways to save my pennies also. Keep up the great job!
Sandy,
This might give you a tiny chuckle today: Pinching pennies---- A VERY successful attorney shared with me that if you buy 2 cheeseburgers off the McD's $1 menu, remove one roll and put them together, you get a Quarter Pounder! This is probably why he has big $$$$! ( Not that I'm hanging out at McD's!!!!..... well, sometimes!!!)
Did you chuckle or are you now craving a Quarter Pounder?
Kathy Opatka, REALTOR Ocean City, MD
Great quote: I can remember my grandpa telling me, "If you have no respect for money, then you'll never have any!"
I am a confessed penny pincher too.
I look at things the same way you do, over a short period, pinching penniesis not a "big dea", but then you are missing the big point.
It is the habits that you create overthe course of your life that make all the difference. :)
it is so true, Depression era folks (few and far between now) knew how to pinch! My aunt would rip a napkin into 4 pieces!
We just need to be carefull not to step over dollars while watching pennies.
Hi Kathy, Yes, you did make me laugh! You're funny! I love it! That's one smart attorney. Well, I've got one up on you! Double cheeseburgers are on the dollar menu right now! So, for a dollar you get that quarter pounder here! And, let me tell you something even funnier...because you're so funny...I was buying 2 double cheeseburgers and a fry when the cashier asked if I wanted my change back....too funny. Thanks for stopping by...I love the people I meet here on Active Rain. Can't wait to get to know you better.
Hi Mark, I think that you should patent that quote of yours. "It is the habits that you create over the course of your life that make all the difference." Beautifully said, and I couldn't agree with you more. It's hard for some people to see the big picture.
Hooray! I do ALL of the above....so I am on my way to becoming a Millionaire!
Very good post...I enjoyed it mucho!
Debbie
Hi Robert, Oh boy, one napkin in 4 pieces-wow - my grandpa used to wear the same clothes for one week (without washing them). And, at one point in his life he took a shower once a week! I remember he used to always carry a hanky in his pocket to blow his nose. I would always try to change the hanky out and give him a new one. No way - he would use and reuse it (not kidding and yes it was gross!) He definitely remembered the Great Depression. He taught me soooooooooooo much (not the part about wearing the same clothes, or the part about not batheing or the part about using the same hanky -LOL). He was a phenomenal man!
Hey Debbie, Well congrats to you! And I'm sure you do so many more too...if you're that conscientious about pinching your pennies. Great job! Take care and you're on your way to a content, comfortable retirement.
Congrats on the star! You are a star and now you have a star!
Hi Fred, I love having you here! You are such an incredible friend! You are so supportive. You are one in a million to me!
Congratulations Sandy and your so right but that is old school, I don't see much penny pinching anymore and that is part of our problems today. We live in a give it to me now society.
Sandy,
So true. And your grandpa was so right! Respect it or you will not have it. Talk about it...It is not a scary thing. Learn to use it wisely...
Great post. Congrats on the gold star.
Ann
Funny post, Sandy. It's true, some of more affluent clientele are very frugal. A top producing realtor in our area used to be the same way - big penny pincher. Well, she retired to a cozy estate.
Hi Charles, I think that penny pinching is a thing of the past. You are right that we don't see enough people our age didn't it. It's a shame. Maybe that's why the economy is in the mess it's in today, because as you said, it's gimme, gimme, gimme!
Hi Kris, I think that we can learn alot from these people. Today, especially we have to stretch our pennies just as far as they will go. Good for that top producing realtor - she had a plan for the future.
Sandy, It is easier to do than we think. I also think if we put our credit cards away and gave ourselves a weekly allowance, we would be surprised at how long and far we could make our cash go for us. I think when we use plastic it doesn't seem as real. I am one to buy a nice car, pay it off and drive it for a long time. Paying off the real estate is the next goal. You are right though about saving your coins. Funny thing is you just never know who some of the wealthiest people are because they don't have to show it off.
Hi Audrey, I have saved my pennies since I was little. But I know many that have a difficult time with the concept. I do believe that we should put our credit cards away. I have known wealthy people that look just like everyone else. They are humble and live modestly. And they are set for the rest of their lives.
Sandy, there are different perspectives on this one...I do know people that do all the things you mentioned and yet are afraid to enjoy what they have. If we live in fear of spending what we have where is the room for increase? I hear what you're saying - believe me, I have 8 kids so I know, but I can also get trapped in a what I call a poverty mentality and withhold when I have no reason to. I'm sure there's a balance in all this that many of us need to find.
Joddie, Well, I have seen these people too. And that's no good either. There should be a balance and they should be enjoying their lives. I think you should have gone ahead and bought the ramen noodles at the store the other day.
I sold a $10 million dollar listing and the owner still cuts coupons for dinner. Buy one get one free is one of his favorites. And his Rolex is fake! He sold his business for like $300+ million in the 1990's but still lives conservatively. (but in a very nice house!)
Sandy, I heard on the news that jello and spam were up they can hardly keep them on the shelves. Actually, except for getting my house cleaned every 2 weeks, we already do those things. This was a great post !
Hi Mindy, I hear stories like this all the time. Interesting isn't it? We can all learn alot from watching these people. To be honest with you, I wouldn't know the difference between a fake rolex and a real one. To me a watch is a watch. Thanks for sharing and congrats on the sale!
Hi Missy, I heard the same thing, Spam? Yuck - no thank you. I think some things just should not be put in your mouth and that's one of them! Thanks for the compliment on the post! Take care!
My Mom still rinses out and hangs her plastic zip lock bags. I wonder how much she has saved through the years.
Hi Sandy, you are absolutely right. There is actually a book that talks about it called Millionair Next Door, I would definetely recommend to read it for anyone.
Sandy - so many good points. I once found over $300 worth of clothes, shoes, etc. that still had the pricetags on them in a home that the tenants were evicted for non-payments..and yes, I returned them for the money!
Sandy: Now I know why every time I got on the Optimist group board your blog was at the top. That's exactly where it deserves to be, and I will do something about it: it is now a featured post on our Optimist Board. Congratulations on this AND garnering the coveted gold star (AR is so good at spotting a winner!).
2. Please post this on your area's Localism, so that other people (the general public) can enjoy it also. It will most likely garner you some sensible clients.
Good job!
Sandy - this is a great and timely post. I just sold a house to some people who put $800,000 in cash. They are very good managers of their money. They watched every dime carefully. It was impressive, as they caught things most people would just gloss over.
Great list Sandy the no car payment is a big one for me. I'm not completely against leasing but I prefer to own out right. It's shocking that the cashier at the drive thru asked if you wanted your change. What if you said no? Would she have kept it for herself? If so she has pretty good racket going I'm sure the majority of people don't want their change.
Lisa, Well, you got me on that one - I also wash out and save my ziploc bags too (only if there were no greasy items in them). I'd say I've probably saved about $5.00 doing that over the last 20 years-LOL!
Radmila, I have read the Millionaire Next Door - enjoyed it very much. Thanks for sharing!
Hi Bobby, Good for you! I probably would have returned that bag of clothes exactly the same thing that you did. Hey, $300 is $300! Amazing what tenants leave behind in rentals!
Mirela, You are too kind! Thank you so much for the compliment! And thank you for featuring my post on top of the Optimist board - I really couldn't think of a better place to be here on AR. I will, in fact get this posted to localism - some sensible clients would be great!
Hi Sharon, Typically people with money do pick up on things that others would never even notice. Thanks for sharing the story. And congratulations to you on the sale!
Hi Justin, Is this a new world that we're heading into? Or was the cashier at the drive through just too lazy to make the change for me? Unbelievable! I think she would have a nice little nest egg if she did that all day, everyday!
Sandy,
Have you read the Automatic Millionaire? It tells how smart the government was to tax us before we had the money.....
Have you ever been to the store and noticed something did not ring up the right price? I notice some of the large retail stores tend to make mistakes. I wonder how many people do not notice.
Ann
Hey Sandy ... In many ways it's like the difference between "old money" and the "nouveau riche." Living in Manhattan, there was ample opportunity to study monied behavior. I noticed that it was mostly the newly rich that flaunted the latest of everything. The other group ... well, they may have lived in a better neighborhood and in a nicer residence, but they lived as those of us without millions. It impressed me and I understood why they were and would probably continue to be "old money."
Marie, It is interesting to see how different people handle their money differently. Sometimes it's scary. I suppose it depends on whether you earned it yourself or whether it was handed to you. Take care!
Love the post -- small things add up. I have saved my change from each day for years. Put it in a basket or jar and stick it away when it is full. It's my walk around money on holidays!
Hi Alexsandra, I think that's great! It really adds up, doesn't it? I've been doing that for years, too. Well, now you have a little bit of extra spending money for the holidays. GREAT JOB!
I need to learn to economize more. Good reminder. Thank you.
Awesome post Sandy - I to know people that survived the great depression. By looking at them, the clothes they wear and cars they drive one would never know they have money but they are very wealthy and many are millionaires. One of the commone traits of self made millionaires I once read is that they do not covet possessions. Most people see a shiny new car or new anything and MUST HAVE IT. The savy person can walk away from those temptations and not think twice about it. They all live well within their means and covet nothing material. A lesson many could learn.
Hi Thomas, I think that we all must remember to economize more, don't you? You're welcome and take care!
Hi George, Self made millionaires definitely have a different mentality than other people do! I agree with you - these people do not have to have that shiny new car! They save their money for a rainy day - and that's why they have money! Thanks for you input and thanks for stopping by!