How I Became a Millionaire While Working in My Pajamas
Published on - December 9th, 2007 (by J.D. Roth) This is a guest post from the Millionaire Mommy Next Door. At her blog, MMND shares her recipe for success, happiness, and financial freedom. This piece originally appeared on her site in a slightly different format.
When my husband and I married (at age 23), I was working as an office assistant at a veterinary hospital earning $7.50 per hour. Unsatisfied with my low wages, I brainstormed ways to generate extra income.
Going to the dogs
I had worked as a volunteer dog-trainer for the Humane Society since age 14, so I combined my experience and youthful exuberance into a part-time side business. I offered dog-training classes and taught them in the veterinary hospital’s backyard. It was a win-win situation: my employers had a new service to offer their clients, and I was self-employed, with very low operating expenses.
I soon added home- and pet-sitting to the services I provided. Within about a year, my part-time business was earning more than my full-time wages at the veterinary hospital, so I quit my job. Over the next few years, I expanded my business and hired a few part-time employees. It was at that point that I discovered the joys of working from home in my pajamas.
In the pipes
Meanwhile, my husband served as a company-employed plumber working for hourly wages, earning $30,000 to $35,000 a year.
At age 30, I sold my dog-training and pet-care business (for about $75,000) and we launched a plumbing and heating business of our own. My husband served as the project estimator and plumber; I was the business manager and bookkeeper.
Our customers quickly spread the word about our new plumbing company. Within our first year, we had generated enough business (via personal referrals) to keep us busy and profitable. Building a business based on personal referrals completely eliminated the need for us to spend a dime on advertising.
Doing the math
We soon faced an important decision. Should we expand our services by hiring other plumbers? Here are the two options we considered:
Option A:
Continue to manage a small in-home business operated by:
- 1 full-time plumber (my husband; 40 hrs/wk)
- 1 part-time apprentice (20 hrs/wk)
- 1 part-time bookkeeper (me; 5-10 hrs/wk)
With this model, we could earn $250,000 annual gross revenue with 50% net profit (low overhead expenses means a higher percentage of revenue remains as profit).
~or~
Option B:
Manage a storefront business operated by:
- 5 full-time plumbers (200 hrs/wk)
- 2.5 full-time apprentices (100 hrs/wk)
- 1 full-time bookkeeper (40 hrs/wk)
- 1 full-time manager (40 hrs/wk)
Under this scenario, we would earn $1,250,000 annual gross revenue (5 times more revenue, with 5 plumbers, than Option A above) with 10% net profit (higher overhead expenses means a lower percentage of revenue remains as profit).
Which business would you rather own? At first glance, most would likely say, “I’ll take the business that makes one-and-a-quarter million dollars each year!”
Whoa now, let’s slow down and do the math:
- Option A: Small in-home business brings in $250,000 gross revenue and nets 50% profit = $125,000 annual net profit.
- Option B: Larger storefront business brings in $1,250,000 gross revenue and nets 10% profit = $125,000 annual net profit.
Now that you’ve checked the math, which would you choose?
My husband and I chose Option A. Option A comes with fewer expenditures of time, energy and capital, as well as reduced risk. Option A nets the same profit as option B. As a bonus, option A allowed me to continue working at home in my pajamas.
Of course, if we hired 10 plumbers, we might make significantly more income. However, upon evaluating our priorities and values, my husband and I decided that we already made enough. We made the choice to work less rather than grow our business. In other words, a balanced lifestyle was, and still is, more important to us than money.
Learning to invest
Since our plumbing business required only 5-10 hours/week of my time for bookkeeping tasks, I decided to learn how to invest on my own (without assistance from our broker). I dedicated almost two years to the study of equity investing via books, web sites, and conversations with investors. Once I had acquired the knowledge, confidence and skills necessary to invest successfully on my own, I fired our broker, saving us thousands of dollars in commissions and fees.
Once we reached our crossover point (the average annual return from our investment portfolio exceeded our annual expenses, plus inflation), we scaled back on our business. My husband currently works only two or three days a week. Now, he can be selective in the projects he accepts. For instance, he no longer unplugs toilets, but he still enjoys creative remodeling projects. If he chooses to retire or to do something completely different, we’ll sell our plumbing business.
Achieving financial freedom
Before traveling to China to bring our new daughter home, I hired a bookkeeper to replace me so that I could focus my time, energy and attention on parenting and pursuing my hobbies. Additionally, I’ve learned how to effectively manage our investment portfolio in such a way that this task requires just one or two hours per month of my time.
We have truly attained freedom, financial and otherwise. Whether it be work, parenting, or play, we wake eager to spend each new day doing whatever we choose. What a gift!
Recommended reading:
- Getting Rich In Your Underwear: How To Start And Run A Profitable Home-Based Business
- Making a Living Without a Job: Winning Ways For Creating Work That You Love
Want to learn my recipe for success, happiness, and a million dollars? Start here: Baby Steps to Financial Freedom.
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The problem with this woman is that she thinks she discovered something new that hasn’t been done before. Sweetie, there have been countless husband and wife teams, with the hubby going out and manually earning the money while the wife stays at home and does the bookkeeping. And the two of them make tons of money and the woman invests it, etc. etc. Me being one of them. Husband and I are both millionaires. I stopped working 5 years ago. He still works but only 2-3 days a week. yawn!
What this woman has so casually forgot to mention to everyone (and I know this because I USED to read her blog) is that she sold her home 5 years ago, at the top of the housing craze (because her husband was too tired to cut the grass) and she invested the equity (around $250,000) while they moved (downsized) into a rental home (which they are still in now).
I did the same thing sweetie, as did countless of other people at that time. We sold our home 5 years ago but bought another (downsized) home for cash and invested the rest and became millionaires. yawn.
This woman is so full of herself. She thinks she invented sliced bread. There’s nothing new in her story. It’s not a formula that can be passed onto people so that they too can become millionaires. She got a lucky break. As did I.
I only work a few hours a week in our business as the bookkeeper. We pay ourselves minimum wage to qualify for social security, unemployment and other benefits. We’re heavily insured. Yeah? So? You haven’t discovered something new babe! Business couples have been doing this for decades. Get over yourself. I spend my days, months and years reading, learning and studying investments and have made hubby and I some good manuevers. But what works for us, isn’t going to work for others and I wouldn’t dare tell people how to live their lives nor would I offer them advice.
Lots of things can go wrong. I had a little business I was going to sell. 2 days before we closed on the deal, it fell through. Oops. Hubby also gets sick and can’t work all the time. No back up. Not a good thing. Some weeks are lean. Some are plenty. Yeah, sure he can stop working but life is long honey. I learned no amount of cash in savings or investments can keep you solid as a steady stream of some money coming in. Or haven’t you discovered that yet? Or should people who actually take your advice be in for a real awakening.
You are absolutely right that if I don’t like your blog or comment management, I can just not go to your blog. Which is what I have done. I avoid your blog like the plague. That’s how much I dislike you. My perogative, right?
I am very upset that I still have to read your nonsense on other people’s blog, like Get Rich Slowly.
You think your blog is so successful in these past 4 months but that is due to the fact that you use the word ‘millionaire’. Betcha if I started a blog and called it the ‘Millionaire Kangaroo Next Door’ I’d get a lot of action?
Oh, and as for making millions in your pajamas? Nothing new. When they invented the internet and fax machines, along with the computer, millions of people have been doing the same thing. I’m always in my pajamas. In fact I am in them right now, writing this comment on this blog.
You are nothing new. There is nothing extraordinary about you. I am grateful for this blog so that I can finally tell the world what I think about you. Same with the others who have commented on this site: you only accept commenters who agree with you and stoke your ego. You’ve shut out countless comments from me and I am good and sick of it and you.
Personally, I find you to be irritating and a fraud. Hopefully, others will catch on to you also.
Have a nice day.
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It is amazing to me how petty some people can be. Reading comprehension seems to be somewhat of an issue too.
I enjoyed the article.
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My. What a lot of vitriol, “sweetie.” Pathetic.
It’s interesting how much hostility success generates. Guess it comes under the heading of sour grapes, but sour grapes seasoned with a hefty dose of dislike for women — or, in the case of the female posters, a powerful dose of self-loathing.
Will all those folks who imagine that raising a man’s children is not a job please do a little research and find out how much it would cost to hire a live-in nanny/housekeeper 24 hours a day, 365 days a year? This is not hard to find — simply call an agency or look in your local classified ads.
Mr. & Mrs. MMND have two things going for them: he has a trade that is deservedly well paid (after you gentle folk are done figuring out how much it would cost to replace a wife & mother with paid help, please get a monkey wrench and spend a few hours working on your plumbing), and they each have the ambition and smarts to manage money and a small business.
And, judging from the tone and grace of her responses to the meanness that characterizes many of the remarks here, she has a great deal more going for herself.
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Response to alicia: As you know, I’ve already addressed the aggressive nature of your emails to me in my post:
Chauvinist, Troll Or Economic Abuser?
http://millionairemommynextdoor.blogspot.com/2007/11/chauvinist-troll-or-economic-abuser.html
Response to yp: I agree, some people can be negative yet insightful, and I DO publish their comments on my blog. But I draw the line at threats, name-calling, and other poisonous and pointless comments (particularly from “alicia”).
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What I don’t understand about people like Alicia is why they spend so much time and energy to criticize something they don’t agree with. I don’t necessarily agree with everything that MMND says (or any other blogger for that matter) but that doesn’t mean I’m going to devote the rest of my life to a hate campaign.
Mike
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Although I don’t find new news here for me, I’m always happy to hear how other people have achieved financial independence. It’s likely that some of your approaches and the way you talk about them might help others do what they need to do. Thanks for sharing, MMND.
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Okay, folks, this site is not the spot for personal attacks, etc. Pack it in. From this point forward, comments on this post will be heavily moderated.
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Seriously, WTF? This woman is just writing a guest post about her story. She never said “here is exactly what YOU can to do to be a millionaire, steps 1-10.” She’s writing about how she made her way…figure out YOUR way on your own.
People who discredit her as “just a housewife” obviously didn’t read the post very well, since it was the sale of HER business that funded their plumbing business in the first place, not to mention her role as manager and the fact that she sounds like a pretty savvy investor.
I’d love for someone to hand me all the answers, too, but it’s not going to happen. And if she didn’t answer all of your questions, she seems pretty willing to address them in the comments, so maybe let’s not slaughter someone for simply telling their personal story?
@Harry–you said, “PS: they may be millionaires, but hubby’s still a plumber. (not that there is anything wrong with that) But, give me a break!”
Obviously you think there IS something wrong with being a plumber, or you wouldn’t have added that little postscript. What a grand profession you must have to belittle an honest job like plumbing. I guess you’d mock my father, too, since he’s a stone mason. And my family is full of mechanics…I guess they aren’t good enough for you, either.
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MMND: as usual you are sorely mistaken. I have a name and I use it.
You are just a waste of broadband width. Naturally, of course, just my personal opinion. Obviously, there are many, many others who feel the same way.
Again, have a very nice day.
Thank you to Get Rich Slowly for finally airing my comments.
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Seems weird to spend so much time and energy writing very long comments to someone (I believe you know her as “sweetie,” “babe,” and “honey”) you already know you don’t like. You don’t have to read it just because it’s on another blog. The first paragraph tells you who wrote it. Skip the post and move on.
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I apologize to everyone. But here’s the problem: I do not like people who give inaccurate financial advice to readers without the fair option of discussing it. No matter how snide the blog author may ‘think’ the comments are, if you are going to post a blog, kindly allow your readers to question, discuss and share a different point of view.
MMND, pooh-poohs anyone who has a different opinion and sites a ‘nasty attitude’ for her reasons for the omissions.
I just wanted people to know because she just doesn’t give fair time. For eg; she never answered my questions and just gave a link to her blog with some guy’s questions. She calls him chauvinistic or a troll. As if to imply, I am the same.
Oh well. Again, I apologize and again I thank Get Rich Slowly for his patient time.
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The problem, Alicia, is that you are displaying plenty of nasty attitude.
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I think it is awesome that MMND and her husband were able to make a good deal of money. I hope to be in that position soon (I’m only 22 and am about to start my own company) so its nice to see that it is not impossible.
I also think it is pretty awesome that not only did they make money, but she is now making money by telling how they made money. So while her situation may not be something totally new (like mentioned by a bitter poster above) she is continuing to profit off of it, and I think that is impressive.
I don’t see why people just can’t be happy for others successes. Great post MMND, I think ill be checking out your blog now to see what else you have to say.
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Wow! I don’t think I’ve ever seen things get this snippy before on GRS.
For what it’s worth, I think it’s perfectly reasonable to point out that MMND got to spend the last several years in her pajamas while her husband was out bringing home the bacon. I will note that she wasn’t a stay-at-home mother during this time–it sounds like they became parents after they reached their financial goals–so it wasn’t like she had that “second fulltime job” during the Pajama Years.
This seems to be what gets people riled up: yep, it’d be pretty darn easy to get rich on 10 hours of work a week…when you’re being supported by a high-earning partner. Nice work if you can get it, as the saying goes.
In my opinion, probably the more valuable take-home messages from this post are:
1. You can make a bundle of money in the trades. A college education and a white collar job is not required for doing well. And trade jobs (particularly plumbing and electrical) are way less likely to be outsourced to India or wherever.
2. In order to have the free cash to invest, MMND and her husband had to live well within their means. Obviously they resisted the siren song of lifestyle inflation. I’ll bet this is why the author describes herself as a “millionaire next door”, since that’s one of the major themes of the book of the same name. This is totally commendable!
3. Entrepeneurship can really pay off. This is another major theme of the book The Millionaire Next Door. It’s also totally commendable that Mr. MMND took the plunge. and the two of them together made it work so well for their family.
I’ve definitely taken the message of the book Millionaire Next Door to heart and it’s pretty cool to hear that, yep, it can work as described.
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This is an interesting and inspiring tale. The plumbers we use charge $75/hr – and they’re cheap. I don’t think $125/hr is out of the question, especially if their services included heating.
She also doesn’t say how long it took for them to get to the $250k level, and they may have been very fortunate with their referrals. Perhaps their work was so good that they deserved it. There was a tremendous building boom in the US until the last year or so and they may have ridden the wave.
Angie right above summed up what the story really tells us. The nitpicking has more to do with people having problems with MMND’s choices and jumping to conclusions about the timeframe. Check her list of priorities – she homeschools her daughter. I see parents who have their priorities straight. I wouldn’t mind knowing the exact details of her investing, but there are plenty of other sources for that. Frankly, this could be a complete fabrication (I don’t believe that to be the case) but it would still be inspiring.
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Count me one as being a skeptic. I don’t think that makes me jealous or whatever else has been said on here, it is just that the entire story seems way to formulated. I am sorry I have just heard it all, and for me to believe this I would have to see all the years of certified returns…much like you can see from more commonly known financial gurus. I don’t care how you got your money, or even if you have money, but I have just seen way to many Carlton Sheets wannabes out there. To me you do sound just like Carlton Sheets, I have made my millions, I don’t have to work but I do because I love it, but I only work when I want to and I have made so much money and I am so happy I just feel like I have to share this with you now. I just feel that what you have learned is there are A LOT of lambs out there and all the wolf has to do to lure them in is tell them how to make a million dollars, right?
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I love the Millionaire Mommy. She’s not taking any criticism from anonymous internet lurkers. She spent late nights working on the plan, believing in her vision (and math) and making it work, one day at a time. I grew up with a father and mother that owned five laundromats, three buildings (3 family “taxpayers” don’t get crazy now), a clothing store, and an insurance brokerage. They had six kids, put them all through college, and were experts at The Fine Art of Cash Flow. They worked the dream, 24/7, and lived and died with every decision they made. I learned how to invest, interpret accounting financials, and put my money to work, from them. They had my brother and I count the money from the Laundromats, keep the books, and showed us how it was done. Believe me, it was hard. They worked all the time. They chased every dollar and every opportunity (that’s why they had such a wide variety of businesses). The readers of this blog got lucky (thanks to JD) to hear this woman’s story, and have an opportunity to learn, like an apprentice. Like I tell my apprentice, “shut up, stop asking dumb questions, stop arguing (as if you KNOW something) watch everything I do and you will LEARN something of great value…” You came to this blog for a reason.
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@ BxCapricon
“shut up, stop asking dumb questions, stop arguing (as if you KNOW something) watch everything I do and you will LEARN something of great value…”
You tell your apprentice to shut up and stop asking questions? he should quit because you are quite possibly the worst teacher in history. Way to make hard working parent proud by being an ass.
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Alicia/Harry/Boomie/Anonymous/misc. other names: I know for a fact that you are one and the same person. I also know that you are the one that previously stalked my blog and email inbox with various rants and hostile threats. As I told you before, I am not interested in continuing a dialog with you. I encourage you to seek appropriate counsel.
Readers, I am so sorry that you had to endure this comment craziness. I will now focus on answering your questions, one at at time.
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To Michael Brito: You’re welcome. Sorry about losing your job… but congratulations for coming to the conclusion that you’re worth making more money, and on your terms! May I list a few things to consider as you embark on starting your own business? I’d like to turn this conversation into something useful and relevant to my post.
*Be completely ready for business BEFORE you launch. First impressions are a matter of life and death for your new business.
*Find a business mentor – shadow, volunteer, apprentice.
*Analyze your competition: supply, demand, prices, strengths, weaknesses.
*Determine what YOU offer that your competition doesn’t.
*What are the demographics of your targeted customer? How will you reach them?
*Carefully select your niche and business name. Clarify your business identity.
*Create a business plan.
*Would you be better off buying an existing business?
*Create a support system: bookkeeper, CPA, attorney, etc.
*Participate in networking, professional and support groups.
*Be financially prepared: Start with sufficient capital (I like to have a year’s worth of operating and living expenses).
*Protect your assets with insurance: medical, disability, liability, etc.
*Have an exit plan. Prepare for the best and the worst.
*If money is tight, get another “day job” and work your business after-hours. Once your part-time business is earning enough to replace your job, then quit.
*Aim to be a referral-based business -this saves money (no advertising expenses) and time (reduces marketing efforts).
*Look for mutually beneficial arrangements with existing businesses.
*Introduce your service or product to complementary businesses. Offer discounted or free services to potential referrers.
*Provide value to your customer AND referrers.
*Don’t branch out in too many directions. Focus!
*Keep a schedule. Don’t burn out on overtime.
*Ask for feedback (customers, employees, referrers)
… and finally…
*Don’t allow negative people to bring you down.
Does anyone have additional suggestions for Michael as he prepares to start his own business?
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I just had a thought… I didn’t submit this as a guest post – JD read this post on my blog and emailed me saying he “loved it”. He asked me for permission to reprint it on his blog. JD, as you have recently announced, you are gradually phasing out of your work at the box company and phasing into your own problogging biz full-time. Perhaps you would like to offer your readers the reason(s) this particular post grabbed your attention?
Time for dinner. I will respond to the rest of the comments after my daughter is tucked into bed, or tomorrow morning.
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@MMND
I can promise you that I am not Alicia or any of those other people you group in with etc. Listen you say your system worked for you and that is great, honestly it seems a bit far fetched to me, but that’s just me. I am a new reader to this blog, it was recommended from elsewhere, but honestly I am a bit disappointed to see this type of story.
Even if this is a true story it is just really not that fantastic of a story to begin with. Sorry 2 people working since 14 with no kids make a million dollars by mid-40s.
On top of that it is hard to verify what you say is even true, anyway.
Finally, it is not practically applicable to most readers here, therefore making it a bit dangerous for anything more then a feel good story.
I read some of alicia’s comments and while she is over the top, she does have a point that luck played a factor for you (why I believe it is dangerous for many readers here)…the last 10+ years have been a insane housing market (good for a plumber) and the market has routinely set new highs (good for an investor).
I read your story on lifehacker about selling your house and, while the numbers there were artificial for me, I did enjoy that read more. This story just has a carlton sheets feel to it, sorry, and I am disappointed to learn this is an article in which JD actually loved, but I guess no blog can be 100% perfect.
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To Arp: You mentioned that you’d like to know how I invest. I posted about my investing methodology here:
How Do I Select My Investments? Why Are They Performing So Well? @
http://millionairemommynextdoor.blogspot.com/2007/11/how-do-i-select-my-investments-why-are.html
Fire Your Broker: 10 Keys to Investing Successfully On Your Own @
http://millionairemommynextdoor.blogspot.com/2007/09/fire-your-broker-10-keys-to-investing.html
How would I invest if I was a beginner with a smaller investment portfolio?
http://millionairemommynextdoor.blogspot.com/search/label/Investing
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To NoHater: I can’t think of a way to reduce your cynicism other than to tell you that I have nothing to sell to you. I, like most bloggers, am simply passionate about writing – especially about personal finance. It’s my hobby.
I am well aware that my story is not necessarily unique. That is why I chose the pen name, Millionaire Mommy NEXT DOOR… because I’m so ordinary that I could be your neighbor. Those that have read the book, Millionaire Next Door, understand what I mean.
You say that luck played a factor in our wealth because of the housing and equities markets over the past 10 years. I like the saying, “Luck is where preparation and planning meet.” Everyone had the same opportunities as we did during the last 10 years. Some increased their wealth over that span of time; others did not. I’m simply sharing my story – of preparation, opportunity, and yes, some luck. My way certainly wasn’t the only way; it was just MY way.
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There is a new opportunity every single day. You don’t need the housing market of the past decade to break into financial independence.
Regardless, none of what MMND says is really all that far fetched, nor is it truly out of reach for most people, regardless of how your situation is similar or different from the one outlined above.
I’ve sat through “get rich” seminars before, and for all of the crap they spew, there are a few useful pieces of information that you can glean from such sources, but mainly this: Opportunity is out there, but there are no shortage of people who will stare it in the face with their eyes squeezed tightly shut. Find *your* opportunity and exploit the hell out of it, just realize that other people may not see it even when you’ve made a success out of it.
That’s a valuable message, and MMND’s story is but an example of it in action. Get Rich Slowly is another example, just at a different stage in the game.
Quite frankly, I just don’t get the point in questioning the validity of MMND’s story, as the major points are not all that remarkable or unique, as many people here have noted. It’s worthwhile for precisely that reason.
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MMND,
I have spent some time going through your story as well as the comments.
I enjoyed the story and am motivated by it.
Continue telling us your stories. Those of us who want to, like me, will learn from them. I have.
Cheers
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Thank you for posting this. I read it when originally posted and have been considering the post and comments since. Although many direct elements of MMND’s methods won’t work for me (I am possibly the only person alive who will admit to being happy as a cog in a major corporation), her posting is prompting me to re-evaluate my thinking about money. It has been a couple of years since my last major mental overhaul re: my money habits, and it is time to work on them again.
One point about which I am curious: Where did you find the time for this while you were working full time?
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To HollyP: You asked, “Where did you find the time for this while you were working full time?”
I’m not sure exactly what you mean by “this”…
If you mean start my first business – I worked my job during the day and organized my new business during my breaks or in the evenings at first, then quit my job and went full-time in my biz.
If you’re referring to learning to invest – I started educating myself after selling my business and starting one up for my husband. Managing the plumbing business was FT for me at first, then 5-10 hrs/wk after I had everything organized and running smoothly. That’s when I “cracked the books” and learned how to invest.
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Millionaire Mommy, I hope the doubters will head over to your blog to check out some more of the details that you were unable to list in this short guest post.
Imagine if you’d discussed your real estate opinion here! Yikes!
Great guest post!
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MMND:
You mention above (comment #31) that you make more money than your husband. But I believe the whole premise of the story was the fact the money made from the plumbing business was invested, and now provides income.
So it seems that, money that “you make”, is in fact produced from money that your husband earned once upon a time. You manage the money he has made. Any returns generated are from his initial earning power.
I find it odd that a member of such a “team” would find it necessary to point out who makes more money than who. Some of your remarks seem condescending towards your husband. That seems very inconsistent with the remaining portion of your story.
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To Devin: The last thing I feel is condescending towards my husband, so I apologize if something I wrote was misunderstood. We’ve been blissfully married for 21 years and he’s my best friend. As I’ve said repeatedly, we are a great team – both bringing unique skills and strengths to the table.
But also understand that just as my husband worked for income, *I* also worked. My efforts and businesses also contributed a significant share of our income. I didn’t, as you seem to suggest, invest only the money he earned alone. Both of us worked and made money during those 20 years, together.
My husband is proud of my business and investing skills. That is why he often “brags” that I make more than he does (ie. when our investment return is often double or more what he earned as a plumber). We respect one another’s strengths and are grateful for them – and one another.
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We are traveling the rest of this week, so I won’t be checking here for questions until we return next Monday. I hope I’ve managed to respond adequately to your questions thus far. I enjoyed (most) of the conversation here. Thanks!
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This is maddening. I’m beginning to believe that any male can say he’s a millionaire and not have to give every last bleeding detail but the minute a woman (and much worse, a MOMMY!) does, everyone is throwing accusations of it being false or, even worse, claims “it’s nothing new”.
JD has had several guest posts about home renovations. That’s nothing new but guess what, some of us enjoyed those posts, just as we do this one (and I would argue that being a millionaire at 40 is definitely something “new”).
MMND, keep up the great work and JD, thanks for an interesting guest post. It’s just too bad some people are so skeptical that women can actually be successful.
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Telly – unfortunately I think you are correct that there is a double standard for successful women.
I mean this blog is based on a guy getting out of debt and you don’t see people complaining about how that’s been done before.
That’s what blogs are all about – telling your story.
Mike
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It sounds like most of the nastier posters don’t understand how:
a) A successful partnership works — if MMND had been a non-related equal business partner who had handled all the business management and income diversification for the business instead of a spouse, would you have as much of a problem with that? It doesn’t sound like MMND’s DH is very good at running a business, and perhaps is not interested in running a business. They are a complementary business team.
b) Investments can eventually return more income that a paying job. It takes smarts and the ability take calculated risks to achieve financial independence. It sounds like this also was not MMND’s DH’s area of expertise or interest. You can make all the $$ in the world at your job, but if you or someone looking out for your interests doesn’t save it and make it grow, you’ll be living paycheck-to-paycheck forever.
MMND contributed her wages and business earnings to the family/business coffers, then her time and expertise at developing a business and investing capital. DH provided his skills at providing superior service. Any business would be fortunate to have such a team.
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@telly and FourPillars
Your posts are befuddling to me and I just do not understand what you are trying to prove. First, there is no lack of support in these comments for MMND, but I guess I am glad you found what you wanted to find and came to the conclusions you wanted to come to. Since this is an investing blog I feel it is relevant to add, while I am not sure if you always see what you want to see, but if you do, that could be dangerous when picking investment vehicles so be careful. Second, does the fact that MMND is a woman and a “Mommy” mean that people can not be skeptical of her? If so that is an odd criteria. Also, please find me one “Millionaire male giving investment advice who does not have his skeptics too. If I have missed your point then please elaborate more on your point.
@MMND
I have read the book Millionaire next door and actually most of Millionaire mind..and I guess that is why I am skeptical of your story because it literally seems ripped right from the pages of those books or something Carlton Sheets would hock, again that is just as it appears. Furthermore, it just seems disingenuous to somehow claim you made your fortune in your pajamas (perhaps as a metaphor to how easy it was), because I have tried my hand at plumbing and know first hand that it can just be awful work. Finally, what nobody talks about on here and what I have not seen you mention is that for every one of you there will be 9.6 other people that fail on your path…it is just a fact ~90% of small business owners fail in the 1st 5 years and ~80% of the remaining will fail with in 10 years…or about 96% of new business fail with in 10 years. Should that discourage someone from trying, no, but if you are thinking of trying I hope you don’t think it is guaranteed to be easy…actually a book that has some interesting perspective is Robert Kiyosaki “own your own corporation” book, while overall it is not a real good book, he does make some good points too.
Anyway, credit where credit is due, you did have to start a business and you did have to learn to invest and you did those things. However, you were in 2 markets (housing and stocks) which were explosive beyond belief for the last 10 years, I think your results would be hard to replicate in the coming years and that is all I am saying.
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[...] How I Became a Millionaire While Working in My Pajamas ? Get Rich Slowly [...]
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Well –
I have one simple observation. MMND is by her own account, a millionaire.
How many of the rest of the commenters on this blog are?
That’s pretty much the thing that counts here.
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NonHater, I’m afraid it’s my opinion that you can’t see the forest for the trees. Not a single skeptic has made one defensible point that makes any difference.
If I had to guess, I’d say you’re too busy trying to find ways to undermine the success others have achieved to see your own opportunities and capitalize on them. Perhaps I’m wrong, but it feels like the people who are criticizing are basically saying that they can’t use MMND’s story as a roadmap to follow. Well, here’s the best piece of advice I can give you: there are no roadmaps, and you can’t follow someone else’s path to success. The best we get are landmarks along the way, and that’s what stories like this one give us. You get those landmarks, you put them together, and you’ve got your own path set out ahead of you.
No one can help you if you just don’t want to do the work.
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@jason
what are you talking about forest through the trees? As for no skeptics having any valid points, that is your opinion.
Wow, I have talked nothing of my own success and yet you are able to jump to the conclusion that I have not capitalized on my own opportunities and therefore I am a failure. Do you see the irony here, this is exactly my point. You then go on to say that there are no roadmaps to follow and yet there are some very good ones, FYI Warren Buffet followed one, have you ever heard of Benjamin Graham?
Let me take this another way, you say you found some good landmarks from this story, please tell me what they are.
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@BxCapricon
“…shut up, stop asking dumb questions…”
I’d rather ask a question and be a fool for five minutes, than ask no question at all and be a fool the rest of my life.
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Landmarks in the story: Teamwork, starting and running a successful business, being sharp enough to identify opportunities upon which one can capitalize (and those opportunities are different for everyone, in the current market that wouldn’t include real estate), and taking the time to learn about investing.
Seeing other people’s landmarks helps prod me to think about how I might identify my own.
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HollyP: Thanks, that’s exactly what I was getting at.
NoHater: Of course it’s my opinion. You’ve given plenty of yours, why can’t I give mine? I never said anything about you being a failure, but there is a difference between failing in general and failing to take advantage of the opportunities life gives you. Maybe you’ve done a great job of finding and exploiting these opportunities, what do I know, but your attitude makes me think otherwise. That doesn’t mean you’re in financial ruins, it just seems like someone who had had their own successes wouldn’t take such issue with MMND’s story.
I’ve absolutely heard of Warren Buffett and Ben Graham. If you somehow mean to tell me that I can simply follow their teachings and I’ll be worth $52 billion when I’m 80, I have to say I’m skeptical. There are some good landmarks there, but I’ll have to find my own road.
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What an inspiring story. It really illustrates the importance of doing your homework. Most people would not choose the balanced lifestyle, though.
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@Jason
Hmm, not even sure how to respond to the landmarks you were given in this. What could you possibly do with the landmarks you are claiming are so valuable from this blog? So if I am clear you are going to find a teammate who you can be sharp enough with so you can identify opportunities upon which you can capitalize. Ok, sounds, ummm, good.
Anyway, what is my attitude? Skeptical? I am sure that if you asked MMMND if she just blindly believed everything anybody tried to sell her on her way to her fortune she would readily admit that she would be in the poor house now. She may argue that she is not trying to sell anything, which is probably a blatant lie, because I am sure she is trying to “sell” hits to her website to build up traffic for advertising or something else (a potential book deal, etc)…but even if that is not the case she is still trying to “Sell” you her story. My points are real, if you want to get rich, you need to ask tough questions of people and you will have to work hard..and most likely change out of your PJs from time to time. I just do not understand questioning my attitude because in a post I am skeptical that this advice is actually good advice for most people.
As for the Warren Buffett reference, you completely missed my point, Warren was a student of Ben. Warren followed the exact method laid out by Ben, it is called Value investing and it is much more then a couple landmarks which you keep referring too. Which was of course my point, you said there were no roadmaps to which I disagree, mostly, there are tons of great roadmaps and Warren followed one…will you follow it and make billions..probably not, but you have a much better chance of following it and “growing rich slowly” then you do by following MMMND’s landmarks!
You can keep hating on me, but I am trying to help you, and I really have no hidden agenda.
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I swear Tim Ferriss, author of “The 4-Hour Workweek”, was behind this! You sound just like Tim.
This was a heck of a testimonial. Why don’t more Americans do this? We would be a lot happier with our lives. And just maybe Corporate America wouldn’t have the stranglehold on people, the economy and our politicians that they now enjoy.
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For Jordan and Steven. I’ll ask my apprentice to respond to this thread, and tell you the difference it made when I got him to stop wasting both of our times, by pre-screening his questions and understanding what constituted a great question. I too was an apprentice, in the Military, and learned so much more when I got over both myself, and “passive” learning. Passive learning, and maybe I’ll post this on my blog, involves seeing the learning process as “intellectualism”, it values the art of debate, it holds that the student possesses the same degree of subject mastery as the teacher, it entertains the ridiculously naive belief “that there is no such thing as a stupid question”, and that the instructor is an entertainer or has an equal stake in the learning process. The apprentice is expected to remain inquisitive, accepting, polite, organized and pro-active (showing checklists, progressive plans, continually revised methods, and the like). If you are thin-skinned, a professional skeptic, or see yourself as an intellectual, you would have a hard time with the experience. And “an ass” doesn’t even begin to express what I am when you do something that could get you injured or killed.
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Non-Hater: clearly we are talking past each other. You’re missing my point completely, and I can only assume that I’m missing yours.
Can you tell me one thing that you think people are taking away from MMND’s story that is potentially bad advice?
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[...] post of the week was a guest post by Millionaire Mommy Next Door on Get Rich Slowly called How I Became a Millionaire While Working in my Pajamas. She talks about how she and her husband started young with a small income and achieved financial [...]
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NonHater, the proof you seem to require is coming. Mainstream TV media has confirmed my life story. You’ll be able to see with your own eyes that I am a real person. I’ll be announcing the details on my blog later this week.
Telly (#83) wrote: “This is maddening. I’m beginning to believe that any male can say he’s a millionaire and not have to give every last bleeding detail but the minute a woman (and much worse, a MOMMY!) does, everyone is throwing accusations of it being false or, even worse, claims “it’s nothing new”. It’s just too bad some people are so skeptical that women can actually be successful.”
I, too, am frustrated by the blatant sexism I (and many others) experience on a regular basis. My life is wonderful and it is real. I firmly believe those with a clear vision of their “good life” are able to make appropriate choices and take the necessary baby steps, allowing one’s own personal dreams to come to fruition.
Which do you think successful people are more likely to think and say?
“That’s impossible. That won’t work. I can’t do that.”
or
“Anything is possible. Let me think of a way to make that work. I can do anything I set my mind to.”
Don’t let the skeptics bring you down.
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