Teaching Millionaire Next Door (stories needed!)

quote:

---

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

---

Definitely. Sorry wannabe!

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.

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.

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.

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.

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.

---

That’s what we’re after.

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?”

There you go. That’s it