Why Rich People Are Cheap

In our recent coronavirus discussion it was pointed out how we often look to save 10 CHF on a mobile phone plan, online broker, credit card, and we go on and on about it, whereas the current crash has evaporated tens of thousands of our net worth in a matter of days. So why are we like this?

I have just stumbled upon a great video, which explains (based on research) that in order to become a millionaire, you need to keep this frugal mindset for maybe 30+ years, and it doesn’t stop when you reach it. So when sometimes you may feel guilty of being cheap, just remember, it’s a side effect of your ability to save money.

The video also goes on to remind that $20 saved and invested weekly for 40 years, compounds to $180’000. It also shares interesting stats, that 30% of people worth over $5 million still shop at Walmart, and that the largest income bracket to use supermarket coupons… is the one earning over $100’000.

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