Ordinarily I find “money tricks of millionaires” lists to be sort of annoying and unhelpful, but this one, found on the Dumb Little Man productivity blog, and based on a book called ‘The Millionaire Mind’ by Dr. Thomas J. Stanley, is an exception. It offers one bit of practical advice that I think everyone should at least consider.
Buy used. It’s fun! I buy used cars with cash, used furniture, used clothes. Whatever. If you are getting married, I will take your old cappuccino machine that is exactly like the new cappuccino machine I was going to buy, except that it’s cheap or even free. Who cares? Used stuff has character. If I don’t buy something that’s used, I buy something that’s high quality and will last a long time.
From Dumb Little Man:
Defensive Money Strategies from Real Millionaires
1. House Purchases. Real Millionaires do not get houses custom built, nor do they move into new developments. They live in clusters with each other in OLD neighborhoods, in OLD houses. Most are 15 years old and they often triple in price since their purchases.
2. Clothing Purchases. They aren’t going to buy really expensive clothes. They may frequent thrift shops or even Walmart to get their clothes. So don’t be embarrassed to go cheap, just think of it as acting like a millionaire. They will buy really expensive shoes, and resole them when necessary. Since they’ll wear them for a couple of decades the cost per wear will be marginal compared to constantly replacing a cheap pair.
3. Furniture Purchases. Real millionaires do not buy the latest styled furniture. They’ll go out and buy a $10,000 antique table made from REAL wood, not modern saw dust. They’ll repair and refinish this table when needed. They can keep it for a lifetime, pass it on to their children, and not worry about upgrading to the latest. Guess what? Antiques raise in value, so their net worth doesn’t take a hit at all! As far as other furniture goes, they re-upholster it a couple of times in their life time, which is way cheaper than buying new again.
4. Vehicle Purchases. Real millionaires will not buy the latest car while it’s still sitting on the lot. They’ll keep their cars well maintained for many years, and when it comes to make a new purchase they’ll find a used car that is in good condition. This way they can avoid that initial depreciation that comes with driving a brand new car off the lot.