Is the Frugal Millionaire a Myth?
And are those with a million-dollar net worth even that rich these days?
We’re often told we can save our way to wealth, or at least that being frugal can have a huge impact on our finances. It can be frustrating as hell. We all know that a lot of the people we see with money didn’t get it by being frugal.
They often got it via inheritance, or just by being born into a wealthy family, which gave them a lot of other advantages, but no reason to ever be frugal with their money.
So is the idea of the frugal millionaire a myth? Or is frugality really a way to become rich?
How millionaires really live
To this day one of the most interesting books I’ve read about money is the 1996 classic The Millionaire Next Door. As the title suggests, it addresses the fact that many people living in ordinary neighbourhoods live next door to a millionaire.
This is because many millionaires would rather have a million dollars in net worth than look like they do. They’d rather have the liquid assets than the mansion. The freedom that comes with financial security rather than the fancy car, clothes, and other trappings.
