Millionaires Who Are Frugal When They Don't Have to Be • Hacker News Board

Re: Millionaires Who Are Frugal When They Don't Have to Be

#21

Post by hobo_mark » Sat, Jun 06, 2015, 1:19 PM UTC

jasode wrote: post #15

The millionaires at $1m to $10m absolutely DO have to be "frugal" if we use define "frugal" to be about "smart spending" as opposed to fishing pennies out of public fountains. The word "million" is deceptive because it is an amount beyond what 99% have. It makes it seem like some mind boggling amount of money but mathematically, it really isn't that much. A person classified as "millionaire" could be tagged that beca…

Agreed on everything but this line

> it would require the parents to be "cheapskates" and not fund any extracurricular trips like ski vacations and Spring Break parties down in Mexico

One would assume a 'frugal' household knows better than that and would want to pass their value system on to the next generation too. Want to get wasted in Mexico? Find a way to make it happen yourself.

Re: Millionaires Who Are Frugal When They Don't Have to Be

#22

Post by DanAndersen » Sat, Jun 06, 2015, 1:19 PM UTC

crimsonalucard wrote: post #16

Please note that although we respect frugality over lavishness. Frugality among rich people is one of the primary reasons behind wealth inequality. Sitting on top of an perverse amount of wealth and not doing anything with it is bad for the economy. Wealth needs to be redeployed back into the economy and it must be done in following a method that doesn't grow the wealth in an unnatural compounding way.

In cases like those in the article, these savings aren't stowed away in gold bars under rich people's mattresses, they're mainly in investments that continue to yield dividends. Those investments are going to various companies that are actually doing something with that money, so it's still circulating through the economy. Is there something I'm missing? I admit I'm not as well-versed in economics as I'd like to be.

Re: Millionaires Who Are Frugal When They Don't Have to Be

#23

Post by fsloth » Sat, Jun 06, 2015, 1:20 PM UTC

crimsonalucard wrote: post #16

Please note that although we respect frugality over lavishness. Frugality among rich people is one of the primary reasons behind wealth inequality. Sitting on top of an perverse amount of wealth and not doing anything with it is bad for the economy. Wealth needs to be redeployed back into the economy and it must be done in following a method that doesn't grow the wealth in an unnatural compounding way.

What are you exactly saying?

Isn't 'redeploying money back to economy' basically investing?

I think what you first would want is an increase to minimum pay if you want to increase the flow of money in the areas where I think you want.

Re: Millionaires Who Are Frugal When They Don't Have to Be

#24

Post by [deleted] » Sat, Jun 06, 2015, 1:20 PM UTC

crimsonalucard wrote: post #16

Please note that although we respect frugality over lavishness. Frugality among rich people is one of the primary reasons behind wealth inequality. Sitting on top of an perverse amount of wealth and not doing anything with it is bad for the economy. Wealth needs to be redeployed back into the economy and it must be done in following a method that doesn't grow the wealth in an unnatural compounding way.

[deleted]

Re: Millionaires Who Are Frugal When They Don't Have to Be

#25

Post by hippich » Sat, Jun 06, 2015, 1:20 PM UTC

jasode wrote: post #15

The millionaires at $1m to $10m absolutely DO have to be "frugal" if we use define "frugal" to be about "smart spending" as opposed to fishing pennies out of public fountains. The word "million" is deceptive because it is an amount beyond what 99% have. It makes it seem like some mind boggling amount of money but mathematically, it really isn't that much. A person classified as "millionaire" could be tagged that beca…

just minor nitpick - "lifetime cap of the health insurance" - i though with obama care this was eliminated, no?

Re: Millionaires Who Are Frugal When They Don't Have to Be

#26

Post by jsonjson » Sat, Jun 06, 2015, 1:24 PM UTC

crimsonalucard wrote: post #16

Please note that although we respect frugality over lavishness. Frugality among rich people is one of the primary reasons behind wealth inequality. Sitting on top of an perverse amount of wealth and not doing anything with it is bad for the economy. Wealth needs to be redeployed back into the economy and it must be done in following a method that doesn't grow the wealth in an unnatural compounding way.

Unless they've sacked their money away under their mattress, it has been deployed back into the economy. It is either invested or in a bank where the majority of it has grown the pie of total dollars through loans (this is often not well understood). If I have ten dollars that I place in a bank, they will only hold the required reserve. Assuming this is 30%, then seven will get distributed in loans. The effective size of the money is now 17 dollars.

Re: Millionaires Who Are Frugal When They Don't Have to Be

#27

Post by gizmo » Sat, Jun 06, 2015, 1:24 PM UTC

jasode wrote: post #15

The millionaires at $1m to $10m absolutely DO have to be "frugal" if we use define "frugal" to be about "smart spending" as opposed to fishing pennies out of public fountains. The word "million" is deceptive because it is an amount beyond what 99% have. It makes it seem like some mind boggling amount of money but mathematically, it really isn't that much. A person classified as "millionaire" could be tagged that beca…

It's laughable to suggest splurging on a 300k Ferrari is irresponsible at $10M < assets < $100M.

Re: Millionaires Who Are Frugal When They Don't Have to Be

#28

Post by comrade1 » Sat, Jun 06, 2015, 1:31 PM UTC

Nrsolis wrote: post #5

comrade1 wrote: post #3

The farther you are in life in your job, personal life, friends, the easier it is to live enjoyably with spending less money through work trips to fabulous cities, automobile perqs, subsidized meals, work home-buying perqs, etc. I'm not sure how much these people are struggling with their low spending.

As a person who travels regularly for work I can say you have quite a romantic view of business travel. The reality is that I usually see (in this order) an airport, a taxi, a conference room, a hotel dining room and/or bar, a hotel room, a taxi, an airport. The idea that there is much downtime on a business trip is a fantasy of those who don't travel for work.

I'm in Vienna right now for work and going to the symphony tonight. I was in Barcelona two weeks ago and had some fabulous meals. Was in Sardinia las week on vacation but stayed at a colleagues beach home.

We paid 1/2 off for our car with a company perq and are having the company cover about 50k in expenses on a home were in the midst of purchasing.

You should take advantage of your opportunities more.

Re: Millionaires Who Are Frugal When They Don't Have to Be

#29

Post by jasode » Sat, Jun 06, 2015, 1:31 PM UTC

hippich wrote: post #25

jasode wrote: post #15

The millionaires at $1m to $10m absolutely DO have to be "frugal" if we use define "frugal" to be about "smart spending" as opposed to fishing pennies out of public fountains. The word "million" is deceptive because it is an amount beyond what 99% have. It makes it seem like some mind boggling amount of money but mathematically, it really isn't that much. A person classified as "millionaire" could be tagged that beca…

just minor nitpick - "lifetime cap of the health insurance" - i though with obama care this was eliminated, no?

Yes, you may be right. I haven't kept up with the new laws. I just remember actor Christopher Reeves getting paralyzed from his horse accident and he blew right past the health insurance lifetime cap ($250k or $1million I can't remember). Afterwards, the actor and friend Robin Williams chipped in to help with some medical bills.

If the lifetime cap is gone, some other issue will crop up such as an experimental (and very expensive) cancer drug is not covered by insurance but you want to pay out-of-pocket to try it.

Re: Millionaires Who Are Frugal When They Don't Have to Be

#30

Post by tptacek » Sat, Jun 06, 2015, 1:33 PM UTC

hippich wrote: post #25

jasode wrote: post #15

The millionaires at $1m to $10m absolutely DO have to be "frugal" if we use define "frugal" to be about "smart spending" as opposed to fishing pennies out of public fountains. The word "million" is deceptive because it is an amount beyond what 99% have. It makes it seem like some mind boggling amount of money but mathematically, it really isn't that much. A person classified as "millionaire" could be tagged that beca…

just minor nitpick - "lifetime cap of the health insurance" - i though with obama care this was eliminated, no?

Yes, the ACA prohibits lifetime limits on essential health services. There are things that are insurable that do have caps, but if your kid gets sick, the ACA says there's no limit to how much insurers have to cover.