Apr 22nd, 2010
Living Below Your Means for the Glittering Rich
I’m working my way through Thomas Stanley’s Stop Acting Rich …and Start living Like a Real Millionaire. Like his previous works, I love it.
One of the distinctions made in this book is the “glittering rich”; these are folks far beyond even the millionaires that were the focus of much of his previous work, the ones who lived next door and wouldn’t really impress anyone as rich, because so much of their wealth was built defensively–through frugality and smart investing–rather than offensively–through very very high earnings.
A lot of the glittering rich are entertainers or professional athletes–people with incomes and assets far beyond the masses–and they glitter by what they buy. For instance, having multiple homes or cars or motorcycles or you name it that cost a large amount of money.
But interestingly, there are times when these glittering rich, despite their glitter, are frugal: they are still spending well below their means.
Of course, not everyone falls into this category–for instance, MC Hammer, the well known entertainer, is also well known for having to declare bankruptcy, largely due to excessive spending. But still, consider that the glittering rich–the ones that so many strive to emulate–may still be frugal even with their glitter. The lesson for the rest of us is that it’s always fashionable to live below your means, glitter or not.
