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bayoubengals88
Wisconsin Fan
LA
Member since Sep 2007
10085 posts

Teaching Millionaire Next Door (stories needed!)
At my fine institution we allow students to select a course for enrichment three days a week. I'm essentially teaching the book.

Would any of you like to add real life examples that I can share?
I'm looking for:
1. life changing get out of debt situations
2. Still in A LOT of debt situations
3. Saving successfully/building wealth the slow way
4. How hard is it to play catch up regarding net worth?
5. The financial drag of keeping up with your peers (mainly if you've got a high-profile white-collar job -lawyer, doctor, finance, etc.) Advice welcome!

Thanks! This could be really helpful for others here too!
This post was edited on 12/4 at 10:02 am


Mingo Was His NameO
LSU Fan
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Member since Mar 2016
8897 posts
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re: Teaching Millionaire Next Door (stories needed!)
Look at the LSU alum wannabe thread to teach not how to spend
This post was edited on 12/4 at 10:21 am


bayoubengals88
Wisconsin Fan
LA
Member since Sep 2007
10085 posts

re: Teaching Millionaire Next Door (stories needed!)
quote:

Look at the LSU alum wannabe thread to teach not how to spend

Definitely. Sorry wannabe!


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hungryone
LSU Fan
river parishes
Member since Sep 2010
7703 posts

re: Teaching Millionaire Next Door (stories needed!)
quote:

5. The financial drag of keeping up with your peers (mainly if you've got a high-profile white-collar job -lawyer, doctor, finance, etc.) Advice welcome!

Not doctor/lawyer, etc, but the financial drag of parenting choices...how so many parents invest a great deal of money/time in activities like travel youth sports, competitive dance, etc that have very, very limited payoff for their offspring. Parenting can be rife with "keep up with the Jonses" silliness. Many who are in terrible debt aren't overspending on themselves, they're spending on their children.


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153
CoachChappy
LSU Fan
Boudin Capitol of the World
Member since May 2013
19199 posts

re: Teaching Millionaire Next Door (stories needed!)
quote:

5. The financial drag of keeping up with your peers (mainly if you've got a high-profile white-collar job -lawyer, doctor, finance, etc.) Advice welcome!


I could give you about 100 examples of this from the Oil field. One of my friends and his wife were the epitome of keeping up with the Jones'

They constantly bought new car, always had to live in the best new neighborhood, sent their kids to the best private school, and had every toy imaginable (golf cart, boat, 4 wheeler, motorcycle, a camp)

Well, the oil field went tits up in Louisiana, and he and his wife worked for oil field companies. They sold damn near everything they own and moved in with her mother. They had saved NOTHING!!!!!!

It's sad, but after watching him act like a prick on social media and in person I only feel bad for his kids.

He's your typical OTer, who are all plant operators and all teachers are poor and cant afford nice shite.


CajunTiger92
LSU Fan
Member since Dec 2007
1637 posts

re: Teaching Millionaire Next Door (stories needed!)
quote:

3. Saving successfully/building wealth the slow way


I can think of no better example than this or similar type stories.

Millionaire Janitor

quote:

You don't need to earn a massive paycheck to become a millionaire. As one-time Vermont-based janitor and gas station attendant Ronald Read demonstrated, you can reach the seven-figure mark on a modest salary.




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jimbeam
USA Fan
University of LSU
Member since Oct 2011
50248 posts
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re: Teaching Millionaire Next Door (stories needed!)
Look up the Simple Math of Early retirement by MMM. It shows the importance of savings rate, which is only achieved by LBYM. Great visual chart to show.


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70
bayoubengals88
Wisconsin Fan
LA
Member since Sep 2007
10085 posts

re: Teaching Millionaire Next Door (stories needed!)
quote:

I could give you about 100 examples of this from the Oil field.
quote:

Well, the oil field went tits up in Louisiana, and he and his wife worked for oil field companies.

good one, I forgot about this. Immediately relevant to students in the area too.


3D
LSU Fan
NJ
Member since Sep 2013
357 posts

re: Teaching Millionaire Next Door (stories needed!)
Here's what I would do. Have each student pick their favorite company. Then, show them how to apply for a dividend reinvestment program (DRIP) in that company (if offered). Show each student how to apply. Have fundraising events if they don't have the initial minimum amount (car wash, bake sale). Then go over how to read the quarterly statements and have each student report to the class as if they were the CEO. You still have 2 quarters before school is out. Tell them on their 25th yr reunion, everybody can probably buy a car if they don't cash it out.


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Mingo Was His NameO
LSU Fan
318
Member since Mar 2016
8897 posts
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re: Teaching Millionaire Next Door (stories needed!)
quote:

Here's what I would do. Have each student pick their favorite company. Then, show them how to apply for a dividend reinvestment program (DRIP) in that company (if offered). Show each student how to apply. Have fundraising events if they don't have the initial minimum amount (car wash, bake sale). Then go over how to read the quarterly statements and have each student report to the class as if they were the CEO


I'd probably teach them how to open a savings account and not max out their credit cards first.


bayoubengals88
Wisconsin Fan
LA
Member since Sep 2007
10085 posts

re: Teaching Millionaire Next Door (stories needed!)
3D - if I taught a year long class I could go in depth like that, but this is a revolving six day crash course! New students each time...
Thanks for the idea though!


Twenty 49
LSU Fan
Shreveport
Member since Jun 2014
10009 posts

re: Teaching Millionaire Next Door (stories needed!)
An example of how a big salary is not required, but early and often investing builds wealth, is found in the story of a NY legal secretary who accumulated many millions through small stock buys.

96-Year-Old Secretary Quietly Amasses Fortune, Then Donates $8.2 Million

quote:

Her name was Sylvia Bloom and even her closest friends and relatives had no idea she had amassed a fortune over the decades. She did this by shrewdly observing the investments made by the lawyers she served.

“She was a secretary in an era when they ran their boss’s lives, including their personal investments,” recalled her niece Jane Lockshin. “So when the boss would buy a stock, she would make the purchase for him, and then buy the same stock for herself, but in a smaller amount because she was on a secretary’s salary.”

Since Ms. Bloom never talked about this, even to those closest to her, the fact that she had carefully cultivated more than $9 million among three brokerage houses and 11 banks, emerged only at the end of her life — “an oh my God moment,” said Ms. Lockshin, the executor of Ms. Bloom’s estate.


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saderade
New Orleans Saints Fan
America's City
Member since Jul 2005
22968 posts
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re: Teaching Millionaire Next Door (stories needed!)
This is obviously involved with the slow and steady investment strategy but I would focus on the topic of compound interest.


bayoubengals88
Wisconsin Fan
LA
Member since Sep 2007
10085 posts

re: Teaching Millionaire Next Door (stories needed!)
That’s what we’re after.


Colonel Flagg
New Orleans Pelicans Fan
Baton Rouge
Member since Apr 2010
16318 posts

re: Teaching Millionaire Next Door (stories needed!)
quote:

and not max out their credit cards first.


How about make sure they don’t carry a balance? Paying interest on credit cards is how you do not accumulate wealth.

Also do not carry a bunch of credit cards.
This post was edited on 12/6 at 9:38 pm


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boosiebadazz
Member since Feb 2008
64217 posts

re: Teaching Millionaire Next Door (stories needed!)
I seem to remember some adage about a penny doubled each year for 30 years or so or a relatively large sum right now.

The penny won it by a large margin, and it’s useful and easy to illustrate compound interest.

You could also segue into it using my favorite conversation starter st a party... “what’s the most powerful force in history? Pussy or compound interest?”
This post was edited on 12/6 at 9:44 pm


Mingo Was His NameO
LSU Fan
318
Member since Mar 2016
8897 posts
 Online 

re: Teaching Millionaire Next Door (stories needed!)
quote:

I seem to remember some adage about a penny doubled each year for 30 years or so or a relatively large sum right now.



A penny doubled for 30 days is like $10million
This post was edited on 12/6 at 9:46 pm


boosiebadazz
Member since Feb 2008
64217 posts

re: Teaching Millionaire Next Door (stories needed!)
There you go. That’s it


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