What's the deal with cheap skates

[Boozer]

Here on the boards everyone has the same outlook for the most part. "You only live once and you can't take the money with you when you go so live it up while you can."
I live by the same sets of guidelines you guys do. I work my ass for my money so I might as well enjoy it while I can.
All of this brings a question to my head and I never quite understood it. Why do these people make so much money and live so cheaply?
Example:
My g/f's father is the head suregeon at one of the local hospitals here. He is also the most respected orthapedic surgeon in the state and from what I understand very well known around the country. The guy works his ass off and is easily worth 30,000,000 or more. He does have a nice house but bought it when real estate was cheap and now it's worth about 4 mill. but again he did buy it when real estate was cheap and the area he is in wasn't the beverly hills of colorado at the time. Other then his house the guy drives a 10 year old subaru station wagon and wont spend more then $30 on a pair of jeans. He just wont spend money.
My dermatoligist is another good example. I dont know what the guy makes but he's a total cheap skate. He and I have established a friendship and even gone out for beers a couple times. He's a dermatolgist and also a plastic surgeon but shop's for clothes at sams club. I talked to him about boating and he said he'd never waste money on a boat or a truck big enough to pull one. He drives a Honda Accord.
Why make the money if you have no intentions of spending it?
I just don't get it.
I grew up poor. Living in the projects poor. My parents would have spent it if they had it but they didn't have shit to spend. Now that I have the money to spend I just couldn't imagine piling it all away with no intentions of ever spending it. I'm the first one to admit I have over done it a few times but I make sure to keep just enough put away that in the event I do get in over my head I keep a nice stock pile in the savings account to save my ass. And if one day I lose it all it can be quickly regained. Donald Trump has filed bankruptcy and look at the guy today.
So does anyone know these peoples logic?
What's the point?

[MudPumper]

It's how the rich stay rich!!! I don't get it, if I had that kind of money, I would save, invest a good chunk of it and spend the **** out of the rest!!!!!

[fourspeednup]

I don't get it but to some people wealth is just a number on a piece of paper or computer screen. Showcases of wealth like boats or flashy cars don't get them as excited as spending an afternoon on the golf course.:confused:
My uncle for instance, the guy's worth well into the millionS and has nice shit but is not into spending on anything unneccesary. He travels the world but it is all business related. His work IS his life:yuk:

[Kachina26]

I don't get having Millions and not spending some, but it sure is nice to have money in the bank for stuff that comes up. I know the money I have in the bank is nothing compared to many folks, but it's nice.

[DaveA]

Originally posted by Boozer
snip.....My g/f's father is the head surgeon at one of the local hospitals here. He is also the most respected orthapedic surgeon in the state and from what I understand very well known around the country. The guy works his ass off and is easily worth 30,000,000 or more....snip
Well, it seems to me that you need to marry this chick so you can start to work on that $30mil at some point in time...
BTW, how's the flyin' lessons?
DaveA

[Tom Brown]

Hey, here's a thought... maybe there's more to life than spending money? :D

[Boozer]

Originally posted by DaveA
Well, it seems to me that you need to marry this chick so you can start to work on that $30mil at some point in time...
BTW, how's the flyin' lessons?
DaveA
I'll work on the marriage aspect if and when the time is right, Marrying into wealth is a nice thought but self made wealth is what I am shooting for. However, if I do marry I'll make sure there is NOT a prenup involved. :D
I took one lesson and then the instructor cancelled on my the next 2 times I scheduled to go so I havent been since. Maybe I was a shitty learner and he thought I would kill him? Didnt do much the first lesson so I dont think that was the case but either way I said **** it. He obviously didnt want my money that badly.

[bchbum]

Remember the momey they have in the bank is the money that we borrow to buy our toys . So tell them to keep saving , for us .

[LASERRAY]

I'm one that is in no shortage of money, and in no way do I have a surplus
of disposable income either, but I do live by the one philosophy that has ensured my lesiure time since I came of age, and my credo is this: "I work to live, I don't live to work." and "Have a good time all the time". So far so good.
:cool:

[DaveA]

Originally posted by Boozer
snip...I took one lesson and then the instructor cancelled on my the next 2 times I scheduled to go so I havent been since. Maybe I was a shitty learner and he thought I would kill him? Didnt do much the first lesson so I dont think that was the case but either way I said **** it. He obviously didnt want my money that badly.
Not to hijack this thread, but which airport were you flying out of?

[locogringo]

I know several doctors who have the same sort of money values.
One being a really close relative. He is not one of those individuals who is consumed by money. He drives a 74 Volvo, has a decent house but you could never tell by looking at him that he has financial security. Taught me to spend little and save much and donate more than you would like.

[RiverToysJas]

I don't care who spends how much, there's more to life than what you own anyway. If it'll rust, rott, or break - don't put your heart into it.
BUT what I really don't understand is people who make a huge fortune and still work 12 hours a day, while they have family at home they could be spending time with. What's more important? I always say I will never as rich as Bill Gates, because I would have quit/sold out years before to raise my kids. I guess I'm just a weirdo that loves to watch his kids grow up.
RTJas :D

[superdave013]

Boozer,
You should read a book called The millionaire next door

[Starloans]

Superdave, you beat me to it. The Millionaire next door is a great book. These guys do this survey on a bunch of millionaires and come up with like 7-10 common factors that most millionaires have. These were all self made and not lotto winners. From memory here are a few of the common factors.
80% drove american made cars 10 years old.
Most had enough money to live 10 years without working. (how long could you guys not work and still pay your bills?)
Most saved at least 20% of their annual income.
Material status symbol items are not important to them.
Most of the guys get married and stay married to the same women. (That's a big plus, they didn't have to give away their shit in a divorce)
The wife also worked. # 1 job of the wife was school teacher.
Pretty much you have people that compulsively spend money. The people in this book are on the other end of the spectrum. The book is recommended reading. It will open your eyes.
I still play Lotto. :D

[welk2party]

I think it depends on how you grew up. My father is financially secure but he spends his money. Wisely, but he spends it.

[Dave C]

BTW, my occupation is to develop tax schemes for just these type of people. (hence the term "schemes and ways consultant")
These people have a very frugal attitude and are always looking how to reinvest their income to create wealth. For some reason they get off on the idea of making more and more wealth and they are always looking for another angle to make more. Spending it is "lost opportunity cost."
Say they buy a boat for $100,000 instead of investing that $100,000. They don't look at it as spending $100,000 to get an asset but rather look at the lost capital gain of not investing that $100,000. i.e. say the $100,000 investment would return $50,000 over the next year, they consider that they lost $50,000 (i.e. lost opportunity cost)
I have clients that are ordinary people (not from wealth) that have millions in LIQUID net worth (i.e. not including their house) after years of saving.
Also some of these guys are really cheap too.....

[THOR]

RTJas,
Amen brother. I quit my last job because they just couldnt understand why I didnt want to work rather than spending time with my wife and daughter. F'n jackoffs.
THOR <-- still wanting to kick the shit out of his old boss

[CEO]

I know a few of "those" people, and I wondered myself, Why so conservative with the cash? "we grew up when no one had anything, we were dirt poor" We never want to be poor again Ever" It kinda makes a little sense. I guess

[Dribble]

Originally posted by superdave013
Boozer,
You should read a book called The millionaire next door
If everyone followed the philosophy in that book there would be no ***boats, Harleys, Dirtbikes, Vegas etc... It preaches living way below your means, driving shitty used cars, never eating out.
Owning a boat would be a major waste and an expensive gas guzzling custom boat would be considered outrageous.
There is one main concept that I partially follow though. The way to get rich has little to do with how much money you make and everything to do with how much money you keep.

[CEO]

I may be poor, but I LIVE!!!!!:D

[Blown 472]

Originally posted by Starloans
Superdave, you beat me to it. The Millionaire next door is a great book. These guys do this survey on a bunch of millionaires and come up with like 7-10 common factors that most millionaires have. These were all self made and not lotto winners. From memory here are a few of the common factors.
80% drove american made cars 10 years old.
Pretty much you have people that compulsively spend money. The people in this book are on the other end of the spectrum. The book is recommended reading. It will open your eyes.
I still play Lotto. :D
Well then, I am well on my way then.:rolleyes: :rolleyes:

[superdave013]

Originally posted by Dribble
There is one main concept that I partially follow though. The way to get rich has little to do with how much money you make and everything to do with how much money you keep.
That's my main point. It's not what you make but what you keep.
They said the #1 ride of the millionaire next door is an F150 truck.
What I'm sayin is that I would bet alot of people with those big bad ass boats are up to their ass in debt.
When I lived in Manhattan Beach I saw lots of people with the big house, nice benz and SUV's making 6 figures and still living paycheck to pay check.
Then you look at the guy over in Hawthorne who bought the modest house and makes much less then the other guy. He puts some of his coin away every month and has more to show in the long run. He's gonna be the next millionaire next door.
Now I know it's always not like that but you get the idea.

[superdave013]

Originally posted by Starloans
80% drove american made cars 10 years old.
Most had enough money to live 10 years without working. (how long could you guys not work and still pay your bills?)
Most saved at least 20% of their annual income.
Material status symbol items are not important to them.
Most of the guys get married and stay married to the same women. (That's a big plus, they didn't have to give away their shit in a divorce)
:D
Starloans,
You just described my dad. I used to get shit because we did live in a nice house but it was in a shitty area and I know pops bought it right. All the other kids thought I would have all the cash. I told them my dad has it because he didn't give it to me!
And then you get the guys that thought my dad was born into it. Well, my grandfarher sold used Ford cars in Mt. Vernnon, In. for a living. Sure he did ok but was far from rich. My dad did it all the hard way. And guess what? So am I. He has given me some great guidence for sure and pushed my ass to go to school. He didn't give me any cash that's for sure. I leaned the value of a dollar when I got my first job working at the city ice rink.
Ya know, I bet I would get a loan for a 26' DCB no problem. Right now I think I'll stick to my 1978 Schiada that I'm restoring. I'm dumpin way to much money in it but it's all cash on no intrest.
For the people that can swing a big cat or a big fountain and still pay themselfs a nice paycheck. Well, more power to them.
The one's who have a loan for something like that and it makes them put less in their 401k, well I think they are fools.

[HighRoller]

That book was very insightful, and helped me understand my Dad a lot better. He worked his whole life as a firefighter, never making over 100K a year, yet people accuse me of growing up with "rich" parents because they now have the dream house and all the spoils of retired living. They are worth easily more than a mil, even though my Mom stayed at home with us. We followed basic rules like living within your means and my Dad made some very wise real estate investments. Today I look around and want to puke! People are so far in debt that both parents have to work two jobs and the kids pay the price. Nobody has the will power to sacrifice, even temporarily, or live with restraint. I listen to a guy on the Radio who advocates living debt free because your income is your most powerful wealth building asset, and to tie it up with excessive debt destroys your retirement. He preaches a lot of the same things that the millionaire book does, and when you start adding it all up you step back and look at how much money the average person wastes or spends on debt. He says "don't try and keep up with the Joneses-They're broke!" The best thing about him is the insightful statistics he delivers. Example- The average car payment is 370/mo for 55 months. If you invested that same amount for 25 years you'd have 4.6 million in savings. That single stat convinced me I'll never have a car payment again!He's very inspiring, and I also listen to a consumer advocate guy who is the cheapskate extreme. I could never be as cheap as him, but have gotten tons of valuable info about where to get some awesome deals on everyday items. For example, I just signed up for a broadband internet phone service that gives you unlimited local and long distance for $35/mo!

[HighRoller]

Oh, one thing I forgot. When you hear the Democrats slamming "millionaires" like they all inherited it- 88% of millionaires in America are first generation, self made millionaires. So much for the Dems' hot air!

[572Daytona]

That sounds like midwest sensibility there SuperDave, there's no place for that in California :wink: I have to agree though, I could easily afford a new truck but my '96 suburban with 150K miles serves my needs for now so why spend it if I don't have to? I have a couple of hobbies such as boats and computers and I spend quite a bit more than the average consumer on those items and my wife likes to travel but for the rest of the stuff in our life it doesn't matter a whole lot. I prefer to invest in my house (since that is more than likely going to be a big piece of my retirement) and I'm trying to get financially secure enough so that I can retire early or not be in a panic if I get laid off which is looking more and more likely in the industry that I'm in.

[GrapeApe]

One of my Clients is an Old Banker. He is in his 70's. We have talked about his Past, and how he views money, and making money. He has been through many ups & downs in the economy. He made most of his money when the economy was at a low. He damn near owns most of Garnet Ave. in Pacific Beach, and is worth close to $100 Million. He bought up Real Estate when Rates where real high and people foreclosed, because he had the cash to do it. He rides a beat up Beach Cruiser around, and the only Vechicle that he owns is a "Datsun" pickup.. He had the means of spending money, traveling, and buying whatever he wanted, but choose not to.... It's weird to see how people with that much money spend... On the other side, I have another friend who is worth Millions, spends a ton, but balances his work with play, and he is very happy....
*** Grape Ape ***

[BADBLOWN572]

To many people, making money is like a game. Once you win the game, you can use the money you won to support your lifestyle and keep growing. I know several people who did not spend a dime until they felt that they were financially stable enough. Now they are fully retired at the age of 50 and they are making more money now that they are retired than they did when working.
When I talk to these guys, they say that the whole principal behind it is delayed grattification. They were sitting at home saving money while their friends were out partying. They were watching investments grow versus financing everything they could. Now, they are set for life. I know quite a few of them that simply by investing the money they have saved make millions of dollars per year. Now they are living the life that everyone wants to lead. Took them a while to get the toys, but damn, those toys are nice!

[little rowe boat]

Maybe they know something that we don't.Maybe you can take it with you.:D

[Starloans]

By no means am I anywhere close to the people in the book but one of the most interesting points in the book I thought was "how many years or months can you financially survive right now with out a paycheck or credit cards"? Think about that. I actually looked and I could probably make it 4-5 months with my current debt load. (F N boat, black hole money vacuum! :D)That's pretty sad. After that I would have to start selling shit.
I do think there is a "happy medium" somewhere. And I don't think it all about paying cash for everything. I think if I had 5 years of of income saved in various positions assuming I am continuing to save each month during that 5 years, I would be "comfortable". I would not drive a 10 year old car or worry about eating out so much, etc.
I'm a mortgage broker. I've done loans for the single guy buying an $80K condo, (for people outside of CA, that's an outhouse here in a shitty neighborhood) to professional baseball players. I've seen people with $16.5K a month salary, been making that for years, with $2K in the bank and I've seen the regular employee making $2.5K a month with $150K in the bank. Those are extremes but here in Cali, most fall into the 1st catagory.
You may not want to be like the people in the book but it does have some good ideas.
I still play lotto! :D

[bigd1]

Well,
I got caught in the "tech wreck" in 2000. I had my own company, plenty of good clients & plenty of money coming in. I spent a lot of it too on things like remodeling my house, expensive furniture, pool, hot tub, etc. Then my clients started having money trouble and one by one they started going under. It was just a matter of time until I went under too. I held on as long as I could living on savings and finally faced the music last year. I sold my house just before it was foreclosed on and sold everything in my house that I could. I moved into a 1 bedroom apartment and started over. Now things are looking up again and I've got a new company and some new clients (and some of the old ones again) and the money is starting to come in again. My goal from now on is to live on 50 percent of my income from working. I'm lucky I guess since I haven't carried any kind of revolving debt for years and have bought all my cars & boats used and paid cash for all of them. If I buy another house, I will either pay cash or finance only a small part of the note. The lesson I learned from the whole ordeal is that I really don't need anything more than the very basic necessities to be happy. It's a good feeling when I go to sleep in my little apartment to know that I'm now banking more every month than I was making this time last year.

[My Man's Sportin' Wood]

With the low intrest rates, Loans are not that bad. Why tie up your capital on cashing out a house when its damn near free money? Just don't take all the equity out. This boom will end someday.
Cars ... I was one of the guys that drove junkers around because I would not do the payment thing.. Now that the rates are low IMO it makes more sense to buy new. that payment is not so bad when you compare maintaining it, fuel economy, and breakdown time. lets not forget smog checks.
IMO opinion cheapskates like me are addicted to spending as little as possible. For me wealth is when my assets are earning more assets. I still have a boat its just not new, and I still have a rockcrawler its way old school. As a kid my brother and I went to bed hungry. I will never see my kids have that trouble.
Jeff
under Angie's user name

[Debbolas]

Don't you think it has something to do with how generous their spirit is?
I know some very generous people, and some that just don't have that in them.
IMO
;)
This applies to money as well as giveing of yourself.