Josh Elledge - Chief Executive Angel
The late Dr. Thomas J. Stanley, author of Stop Acting Rich, and co-author of The Millionaire Next Door, spent over 30 years studying the habits of truly wealthy people. He found, and taught, that true wealth is not measured in outward appearance; that most truly wealthy people would not be identifiable from anyone else in a crowd. Why? Because true wealth is based on net worth, not the appearance of wealth. Numerous people appear wealthy, due to their clothing, homes and automobiles, but actually aren’t. They owe so much on what they have, they are actually broke.
True wealth is measured by the net of what is left over once liabilities (that is, the expense of owning property of any kind) is deducted from income and/or assets. But the trap many people fall into in our modern society is spending more than they make, in an attempt to appear affluent. Quiet millionaires, on the other hand, stay out of this trap. They have no interest in appearing wealthy or getting trapped into having to purchase certain labels, drive certain automobiles, and live in certain homes. They see these things for the hindrances to building wealth that they are. To this effect, Dr. Stanley stated in Stop Acting Rich, “Most of the self-made millionaires I’ve studied have one thing in common: they were able to build wealth precisely because they never lived in a home… where domestic overhead made it difficult for them to build wealth. The more affluent the neighborhood, the more its residents spend… from cars to haircuts, and from wine to watches.”
So if one desires to build true wealth, it follows that one should learn from those who have already achieved, rather than mimicking the traits and habits of those who only appear wealthy. One habit of wealthy people may surprise you. They use coupons. They are not ashamed to be seen saving a buck. They do not care to look like “they can afford it”. They defy the old mockery that “if you have to ask how much it is, you can’t afford it”. Rather, they care about keeping as much of their money as possible; and will use coupons to help achieve that.
In the book, The Millionaire Next Door, a story that emphasizes this is related: A husband is reviewing his financial statements when he suddenly looks up at his wife and smiles, exclaiming, “Honey, we’re millionaires!” The wife looks up, smiles back at her husband, and goes back to clipping coupons.
Along with using coupons, the habits of the truly wealthy are often not what lower-income earners expect. When asked what they would do if they were rich, lower-income earners often have a list of luxury or high-end items they would own, as well as having a particular home or neighborhood they would choose. In contrast to this, most affluent people live in modest homes, in average neighborhoods, and drive used cars. One legendary example of this is billionaire investor, Warren Buffett. Nearly as famous for his frugality as he is for his investments, Buffett views the expense and maintenance of luxury items, and even a large home, as only a burden. Despite that he could own a mansion anywhere he wished, Buffett still resides in the same home he purchased in 1958 for $31,500. He cherishes the memories he’s had in that home and those he continues to make there. He is quoted often encouraging people to find something they love to do, to steer clear of credit card debt, and to evaluate the value of every purchase.
This last statement perhaps sums up best why people whom you would not expect are avid coupon clippers. They value everything they have, and cannot see paying retail just because they could. Rather, they choose to value simpler things and hang on to as much wealth as they can. They would rather leave a legacy for their family, and give generously to causes they are passionate about, than to appear wealthy for the world to admire. And although couponing itself will never make you rich, it certainly will help you hang on to as much as you can. So next time you’re standing in line at the grocery store, your fist overflowing with coupons, you might be standing by a millionaire… and if you follow in wise footsteps, someday, someone might be standing by you… the newest quiet millionaire.
