A week or so ago, I shared some tips from Warren Buffett about how to become a millionaire. Today, I wanted to share some tips from our eight year old.
This weekend, I had an interesting financial conversation with our eight year old. This is the same kid that has an impressive knack for saving. To set the scene, we were tooling around town when the subject of cars came up…
As we pulled up to a stoplight, a particularly sweet ride rolled by. As soon as they spotted it, our kids started marveling at how nice it was, and how much it must have cost. The undertone of the conversation was that the owner must be uber-rich. Never one to miss out on a teachable moment, I mentioned that stuff like that isn’t necessarily an indicator of wealth.
Taking a page from “The Millionaire Next Door, ” I explained that some of the wealthiest people that they’ll ever meet are the ones that don’t flaunt it. In fact, most people probably wouldn’t even realize that these people are rich — rather, they’ll seem just like “regular” people leading a “normal” life.
This prompted our eight year old to say:
“Why doesn’t everyone just buy normal stuff? That way they could get rich. And if millionaires just bought normal stuff, then they could stay rich.”
While this is a bit of an oversimplification, I think our society could use a healthy dose of eight year old logic. In fact, if more people thought like him, we wouldn’t be talking about negative savings rates and multi-billion dollar bailouts.
Intrigued, I asked him if he wanted to be a millionaire. His response?
“Maybe someday, but not right now. If I was a millionaire, I’d probably just worry about my money all the time.”
From the mouths of babes…