I just finished reading “The Next Millionaire Next Door”, which is the most recent book in the series that began with bestselling book “The Millionaire Next Door” back in 1996. The theme that carries through the series is how to become a millionaire by living within your means, saving and investing to grow wealth, and avoiding an over-consumptive lifestyle. It’s right up my alley.
The latest book rehashes a bunch of statistics and anecdotes that I didn’t find too interesting because it is quite repetitive. The original book, was eye opening to me because back then, the idea of living frugally and not “keeping up with the Joneses” was foreign to me. I was on the fast track for success and was spending every cent I made trying to improve my family’s life by upgrading to nicer homes, dining out, buying designer clothing and living a lifestyle we couldn’t afford but I thought we deserved.
I stumbled across the latest book at the library and grabbed it up for a casual lunchtime read. Since it reinforces all of my current financial principles and practices, it’s not a challenging read.
Coincidentally, while I was reading it, a friend called me to discuss building a deck onto his home. He left me a message saying he wanted my thoughts on tapping his 401K to pay for the deck. After some phone tag, we caught up with each other a few days later. He had already decided and was working on his deck plans. It turned out that he didn’t want my advice. He was simply excited to be building a deck and wanted to talk about it.
The whole time I was thinking, he doesn’t even have to ask what I think because he knows me well enough to know exactly what I would say.
I would say that I never spend money I do not have. I would tell him to save up the cash to pay for the deck – which by the way, he has happily lived without for 20+ years. I would tell him that I would definitely not cash out a 401K. Nor would I take out a loan against it.
I used to live that way. I don’t live like that anymore.
He does not feel the same way about money, consumption or debt.
And so, in addition to a recently financed motorcycle, he’ll be taking on another debt for his deck.
The thought of taking on debt and having loans gives me a stomach ache.
At this point in my life, the only way I would consider borrowing money is to save my wife’s life for medical care that I didn’t have the funds to pay for.
And, I already did this long ago, when were living beyond our means. It was worth every penny, but extremely stressful and took decades to recover from financially.
Plus, I no longer have a wife. She died 4.5 years ago. I miss her everyday.
As for debt – that’s gone too. I don’t miss debt at all.