"if you want to be rich, study rich people..."

[Greebo]

i've never heard this. what does it mean?

It refers to the pattern where one generation will work very hard to succeed, be disciplined with money, and become truly wealthy, but then, in a desire to make sure their children have "a better life", fail to teach the lessons that lead to the behaviors that led themselves to success.

As a result, the children of the wealthy tend to become financially dependent upon their parents for life, rather than carrying that financial independence forward.

Once the wealthy parents die off, as parents are wont to do, the children, too late in life, are left to fend for themselves - so their own children end up back in the working class.

Thus, 3 generations from "shirt sleeves" (or blue collar) to "shirt sleeves".

[Josephhgoins]

So... Should I be proud of the couch and matching chair i got at goodwill for $20 3 years ago?

I have been very lucky in my life to meet several very very rich people. These were people that worked for their money and didn't have to work anymore, but rather chose to.

Some of the things that stuck out in my mind was, they never bought a new car. They always bought used and drove it very many years (at least 10) and then either sold or gave it away. They did not keep a car they didn't need. They also only bought quality where it mattered. I good friend of mine always bought the off brand aluminum foil and plastic wrap. I was floored when she invited me to a dinner. We had a good honey baked hame (from the honey baked ham store) and she wrapped left overs in the store brand wrap.

My general rule is to always look at value where others saw none. Hopefully one day I will be in their ranks, but if not, I have learned to live well off of less.

[ladykemma2]

so... i am learning that it's the upper middle class values that are the conspicuous consumption, lah dee dah, that i am do not wish to emulate anymore. my mother would plotz.

truly rich people, new and old rich, wear classic clothing until ragged, moderate haircuts, moderate watches and cars, moderate everything. they are frugal.

hmmm. so all these years what i thought was truly wealthy was considered kind of "lack of far planning and gauche upper middle class"

[Greebo]

so... i am learning that it's the upper middle class values that are the conspicuous consumption, lah dee dah, that i am do not wish to emulate anymore. my mother would plotz.

truly rich people, new and old rich, wear classic clothing until ragged, moderate haircuts, moderate watches and cars, moderate everything. they are frugal.

hmmm. so all these years what i thought was truly wealthy was considered kind of "lack of far planning and gauche upper middle class"

There are "sparkling rich" who buy new clothes new cars etc. all the time. Their lifestyle is the glamorous lifestyle so many seek to emulate. Those are what Stanley later calls "The aspirationals"

What the aspirationals don't get, however, is that FOR THE GLITTERING RICH, the lifestyle they lead IS CHEAP to them relative to their income and net worth.

The aspirational has clients who are glittering - and think, "to impress the glitterer, to fit in, to BE rich, I need to glitter to" and so buy new cars, big houses, etc. and create a financial mess while LOOKING glittering on the outside.

They confuse the product with the cause. The glittering rich glitter because they can AFFORD to. Those who glitter but can't afford it aren't rich at all.

[ncarr]

Being raised in the South (Virginia) we were always taught it was vulgar and tacky to "put on airs" as my mother would say. Regardless of income it was considered tacky to be too flashy with clothing, jewelry, housing etc.

[Greebo]

Being raised in the South (Virginia) we were always taught it was vulgar and tacky to "put on airs" as my mother would say. Regardless of income it was considered tacky to be too flashy with clothing, jewelry, housing etc.

And then you guys produced Elvis so...

[monkeywrangler71]

In my experience, people who grow up in a reasonably well-off household do not buy things to impress others. I think that people who grew up poor and were somehow ashamed of it are the ones who spend all their money trying to look rich, regardless of whether or not they can afford it. If you've always had money you don't have any emotional need to prove it to anyone - you might buy expensive things, but they will be things you have a genuine interest in not just status symbols.

[Luv2BeFrugal]

I too have pondered that same subject because I want to understand their mindset as much as possible. Sort of "if they can do it, why can't I?", know what I mean?? You should read a book Dave Ramsey recommends often. It's called "The Millionaire Next Door", by Thomas Stanley. The author did a study on the behaviors, much like your comments, and the differences between the spending habits of the average person versus those who build wealth.

The Millionaire Next Door; the Surprising Secrets of America's Wealthy (Hardcover)
~ William D. Danko; Thomas J. Stanley (Author)

I really liked this book...neat 'insight'. He also wrote "The Millionaire Mind"...another good one.

[ncarr]

And then you guys produced Elvis so...

haha... wasn't he from TN though? That's more midwest than deep South j/k

[DaughterOfErin]

I'll second the book "The Millionaire Next Door". What a great read!

[joyofsix]

a lot of this is upper class values, too? according to my reserach yesterday it's the middle class wasting thier money on this stuff. argue back.

Hmm, maybe we were rich and didn't know it? I was thinking more that most people are left with habits from their upbringing, be it rich or poor. Those affect you, even if it is to rebel against those habits.

[StanleyJohnson]

"The Working class is mortgaged up to the hilt and trying very hard to just keep up the payments on their house and car and because they are frustrated and can't seem to be able to save any money ( interest rates of half of 1 % up to 3% max if you tie up the money) they say the H£!! with that and go on holiday to a foreign country once a year, stretching the budget even further.
They are just one job loss away from loosing their home."

Wow ! Just like our middle class. :-)

[Michelle68]

haha... wasn't he from TN though? That's more midwest than deep South j/k

Nope, he was from Tupelo, Mississippi.