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I love real-life stories of people who get rich slowly. Paul Navone, a 78-year-old resident of Millville, New Jersey, is one of those. On December 21st, Navone donated $1 million to Cumberland County College. He still has millions left. How did he earn his money? The old-fashioned way: lots of hard work.
Navone never attended high school. He began working in local glass factories at the age of 16. In 50 years, he never made more than $11 per hour, often putting in 60 hour weeks. He never experienced a windfall; instead, he practiced thrift, put some money in savings accounts and he invested in the stock market.
“Paul never inherited money,” his broker told The Press of Atlantic City. “Paul started from zero. He just worked hard. He stayed the course even through the bad markets. Paul rarely ever took money out. He was the perfect client.” The newspaper’s editors write:
Such a life seems almost impossible to live today, doesn’t it? Get rich merely by working hard and saving and investing? Then not spending any of that investment income?
Simply accumulating wealth that way is impressive and praiseworthy. But then to start giving it way — to give $1 million to a small community college? All because of hard work, thrift and a spirit of generosity? Paul Navone is one rare, rare individual — and a lesson for us all in this age of conspicuous consumption.
Navone shops at flea markets, drives an older SUV, and rarely buys anything at full price. He doesn’t own a phone or a television. Though he’s something of a recluse, he leads a happy life — one of his hobbies is announcing a BINGO game at the local McDonald’s every Wednesday morning.
His wealth came from frugal living, wise investing, and from owning several rental properties. Navone’s story is a perfect example of the power of time. If you’re patient, your money will grow, and wealth will come.
It’s fun to watch Navone’s story develop gradually in the pages of The Press of Atlantic City. Here are three relevant articles:
- 21 Dec 2007: Retired factory worker gives $1 million to Cumberland County College
- 31 Dec 2007: Milville philanthropist has no television or home phone, but millions to give away
- 02 Jan 2008: Paul Navone: A life well-lived
As much as I admire John Bogle and Warren Buffett, it’s folks like Paul Navone who are the real personal finance heroes.
This article is about Choices, Frugality, News, Real-Life Saturday, 5th January 2008 (by J.D. Roth)
January 5th, 2008 at 6:28 pm
Navone’s story is definitely something special. So often the desire to be rich comes with the desire to consume (which makes the getting rich part so difficult). It’s great to be reminded that frugality can lead to wealth.
January 5th, 2008 at 7:07 pm
I sometimes wonder how many people I come across each day are ’secret millionaires’–very rich but don’t flaunt it. And how many people act like they are rich, but are deep in debt.
Sadly I think there may be more of the latter than there are of Paul Navone.
January 5th, 2008 at 7:14 pm
This is a great lesson to all that each of us really has the ability to get to our goal as long as we have a plan and work it.
The Whole Millionaire Next Door phenom is a direct result of being in a country where this is possible.
Great story, and something fore all of us to ponder.
January 5th, 2008 at 7:21 pm
That’s really inspiring.
I’ve recently decided to get a job after being a housewife/artist for several years and I’m looking forward to seeing some money pile up.
January 5th, 2008 at 7:31 pm
One advantage I see for developing good money skills is that you can slowly build towards this even if you’re not earning an awful lot.
And then if you amass a lot (or if you move to a much higher-earning job) you’ve got the skills to manage it and enjoy your life.
The problem with winning the lottery is that you haven’t moved through the stages of wealth that build up to it.
January 5th, 2008 at 7:34 pm
I used to work for the public library in my city and they have a wonderful Personal Finance Collection that was endowed with about $100,000 from a former customer. He was just a regular Joe who used to come in the library almost daily to use Morningstar and other research tools to track his investments.
Some of the librarians got to know him well over the years and he was just a single guy who lived in a small apartment and drove a cheap car - everyone though he just enjoyed reading about stocks, no one had any idea he was building a fortune in the market. So when he died he left $100k to the library for this collection as well as leaving about a few million to some other charities. Now most of us are wishing we’d have asked for a few stock tips
But at least now the entire city is able to benefit from this collection that is endowed and will always be adding new titles and resources. I use it religiously.
January 5th, 2008 at 7:34 pm
I love success stories like that. Thanks for sharing it!
Best Wishes,
D4L
January 5th, 2008 at 7:44 pm
Now think if he had put that determination in an education, a more lucrative career choice, and a diversified portfolio.
Life is not about the bling, agreed, but it is about making the most of yourself and expanding beyond your comfort zone. That means not waiting until you are 70+ before you experience financial comfort.
My 2 cents.
January 5th, 2008 at 8:22 pm
Thanks for sharing this. Thanks in part to Mr. Navone I’ll be hanging on to my reliable granny sedan for another year…
January 5th, 2008 at 8:40 pm
What a beautiful story - makes me believe a frugal lifestyle is really worth it in the end. People have to learn to say no to themselves and quit sacrificing their futures for today’s hottest purchase.
January 5th, 2008 at 9:43 pm
Even more impressive is that he can survive in South Jersey on $11/month. That was almost unfathomable even fifteen years ago.
January 5th, 2008 at 9:44 pm
Thats an awesome story
January 5th, 2008 at 9:44 pm
It is a great story. Unfortunately, people like Paul are few and far between. For most people, the goal of being wealthy is a means to an end, allowing them to consume more. I worry about our consumer culture.
January 5th, 2008 at 10:17 pm
inspiring!
January 5th, 2008 at 11:54 pm
I understand the message we’re supposed to take away from this, but I can’t help but play devil’s advocate:
How much of his fortune did he earn through these hastily-mentioned “rental properties” (notice the plural)? It’d be nice to think that frugal living on $11/hour can make you rich enough to be giving away 7-figure sums, but I’m guessing he derived significantly more income than this in the form of rent over the years, and he could have ended up selling them for monstrous gains (40-50 yrs of home appreciation).
My 2 cents…
January 6th, 2008 at 1:29 am
@Young Professional:
“I don’t know when I buckled down and got serious about making money,” Navone said. “It just grew into my lifestyle. With age, it got more serious. I never denied myself anything, but I certainly never spent on something outstandingly lavish.”
His rental properties allowed him to invest the lions share of his wages. The guy has another donation for a similar amount scheduled for Jan 9. (Two separate tax years ).
He had a financial adviser (the head of the college is a longtime friend and adviser), so he actually got the benefit of a college education without having to personally sit through classes or shoulder student debt.
He has apparently practiced dollar cost averaging by investing at a relatively steady rate for many years.
Frankly, rather than deride the man, I think you should make an appointment to learn from him.
January 6th, 2008 at 4:38 am
I think that this is the result of a monklike austerity. I note that he was unmarried.
January 6th, 2008 at 6:06 am
That’s a great story and really inspiring.
January 6th, 2008 at 6:32 am
[...] (I’m just going to pretend I didn’t see the word “bling.” Oh, JD.) (Read it at Get Rich [...]
January 6th, 2008 at 6:42 am
Thank you for sharing this story. It is quite inspiring and certainly makes me feel like saving and living frugal can come with quite the payoff at the end–especially if I want to share the bounty. Mr. Navone could have kept all his money to himself. Instead, he gave it away to a small community institute of higher education. This reflects what he thinks is important to the future.
January 6th, 2008 at 7:24 am
I loved this story but didn’t find it all that surprising. This fellow lived through the depression and people who did so, like my grandparents, have a different view point on money. I felt like I was reading about my grandparents, little eduction (although my grandparents graduated high school), time in the military (my grandfather served in WW II and Korea) and hard, hard, hard work. My grandparents also owned real estate which funded a very nice retirement. I’ve talked a lot with my grandfather about our debt pay down project and while he is very supportive he has a hard time understanding how we had $55,000 in debt. My grandparents never had debt beyond mortgages. They paid for my father and aunt’s college eduction without loans or debt, they saved up for cars and bought them with cash. They saved up for 25 years to have a 3 week trip to Europe. So when I talk to them about living a debt free life they think that’s normal and the way it ought to be.
January 6th, 2008 at 7:26 am
I’m a sucker for those kinds of stories, too.
Here’s a great one about Harry Alford who owned Dexter Shoes, in Dexter, Maine. I don’t know if he was self-made, but he’s done a pretty amazing thing, willing each baby in Maine a $500 college account!
http://moneychangesthings.blogspot.com/2007/12/quirky-philanthropy-turning-shoes-into.html
January 6th, 2008 at 9:30 am
The thing that I like to take away from stories like this, is that if he can be rich on such a tiny income, then with all my education and opportunities, I can do it too.
And I’m sure he did really well out of the rental properties, but they don’t exactly buy themselves.
January 6th, 2008 at 9:53 am
I do admire him for his dedication and generosity. It’s sad though, just think of how much he could have done if he had gotten an education and earned more money.
January 6th, 2008 at 10:17 am
Did he retire at 65? That’s 13 years ago. That’s like earning around $18 an hour. If he got overtime for working more than 40 hours, it would be like earning $67k a year.
If he saved $1000 a year from age 20 to 65 at 8% and then let it sit till now, he’d have $1.1M. $1000 was probably a lot of money at 20, but maybe he lived at home till he was 25 or something.
January 6th, 2008 at 10:23 am
Here’s a similar story from my alma mater:
http://www.usm.edu/pr/oola1.htm
It’s not quite a million dollars, but it’s no less touching. Stories like these show just how important smart personal finance can be…and not just in our own lives.
January 6th, 2008 at 10:37 am
I like to read about smart frugality — and his partially was (driving an old car, etc.) And for those who stated what if he had used that money on an education…I think it’s pretty meaningful that he decided to leave that money to an educational institution.
The only part that bothers me is when they’re talking about how impressive his frugality is, they mention that he only left the region twice in his life. I think that’s pretty sad, not something to be impressed by, and certainly not something people should aim for in an attempt to be frugal.
January 6th, 2008 at 10:54 am
Can I say that I sort of agree with a devil’s advocate position. It’s a good story and we hear so much about opulence that it’s good to hear a story of austerity. But, it wouldn’t have been the life for me. One of the articles says he only travelled out of state twice. Travel and exeriencing the world is important to me And I will spend money on it
Balance is important and it’s good to hear from both sides so we can all find balance for ourselves.
January 6th, 2008 at 11:11 am
It goes to show that living frugal and being carefull with your money can pay dividends. But as others pointed out I’d like to enjoy life as well.
January 6th, 2008 at 11:24 am
People are saying “it’s sad he only left the state twice.” Remember, not everybody shares your tastes. For some people, travel holds no allure. They go somewhere, take some photos and think “I could have gotten the same experience googling these photos on the internet”.
January 6th, 2008 at 11:50 am
haha i live like 20 minutes from this guy. i give this guy his credit for being generous with his giving. i am starting to realize though that most people around me who are older have quite a bit of money saved up ($1M+) and live average-joe lifestyles. a lifetime of earnings and half a brain will likely put you in a pretty good financial position when you are in your 70s. i think the real success stories are from people who amount this kind of wealth by the time they are in their 30s. thats just my opinion, not looking to start a war…
January 6th, 2008 at 11:54 am
I think there’s a good reason we don’t hear stories like this very often. If you’re content with an austere lifestyle, to the point where you would choose to live that way even if you had millions, then large sums of money are generally not going to be something you chase after. Unless you intend to give the money to someone else, it just doesn’t matter.
January 6th, 2008 at 11:58 am
His money came from his rental properties, since they allowed to save the bulk of his wages. He lived like a monk.
How is that supposed to be inspiring? Sure, you too could buy some rental properties and have no life except calling Bingo. Whoopie!
January 6th, 2008 at 12:45 pm
Several of you have made interesting points:
Navone made a lot of his income from rental properties.
One of the articles I linked to mentions that he was able to live off the rent from these three properties, and then invest the rest of his earnings. But all the same — he still had to purchase those properties. It’s all part of the same Big Picture. In my mind, anyhow.
Saving millions of dollars is no good if you don’t live life.
I agree that Navone’s life seems rather Spartan. But from what I can tell, he’s been happy. That’s what counts. Plus, he saved enough that he could have used some money to travel, or to pursue a hobby, or whatever.
I like this man’s story because it demonstrates that ordinary folks can acquire wealth.
January 6th, 2008 at 1:25 pm
Navone got rich the smart, sure-fire way. He worked, invested his earnings wisely, and lived sensibly. Our society believes in get-rich-quick schemes which hardly ever work in real life. People seem more interested in living a false, bling-bling lifestyle supported by large amounts of debt than building true wealth. This is partially why so many Americans are defaulting on their mortgages. They borrowed money to buy houses they couldn’t afford using lending schemes that were too good to be true. I don’t think Navone lived like a Monk, but I do think he put savings first and then lived conservatively. I’ll follow his example. Great story!
January 6th, 2008 at 1:38 pm
Yeah, I love some of the “if only he’d…” comments.
First of all, he didn’t just amass *a* million, it says he has millions more left.
Secondly, as JD points out, he had to buy and maintain those rental properties, with money he’d earned and saved.
If he’d wanted to travel or spend, he could surely have done so and still had, say, one fewer million to spread around now.
I hope that all the people suggesting he should have done things far differently already have at least their first million saved up.
;-/
January 6th, 2008 at 3:54 pm
There are only 2 million people in the entire US with more than $1 millon in investable assets (not including primary home), and 7 million with a net worth of at least $1 million in total assets (including primary residence).
of those 2 million, the median is $4 million, so there are 1 million people in the US with more than $4 million in investible assets. There are 300 million people in the US, so $1 million is surprisingly rare, no matter how many stories you’ve heard.
And this guy’s frugality is pretty amazing, but taking it that far is definitely not for everyone. that’s why there are so few millionaires!
January 6th, 2008 at 4:41 pm
Who cares how many times he left the region? He’s lived his life exactly the way he wanted to and for that alone he’s an inspiration.
And I think we ought to look at the lesson here — that happiness (not just wealth) isn’t a by-product of expensive trips and expensive toys. He seems happy and I bet he’s a joy to be around. It’s how you live each day.
January 6th, 2008 at 4:44 pm
I don’t get the education comments. A lot of people who “take education seriously” don’t get out of school until their mid-20’s or even later, all years they could have been earning–and the more you set aside early the better off you will be.
On the travel, I could care less about travel myself, and there are others like me. Everyone has things that are important to him or her.
My great uncle did a similar thing, left an estate of $2M having never earned more than a modest salary. But investing was his hobby. Heck, he even traveled and participated in several other hobbies, none of which were very expensive.
January 6th, 2008 at 5:25 pm
Part of the problem is we don’t know what this guy’s actual income was. If he was living off his rental income and investing most of that $11 an hour, then his income WASN’T only $11 an hour. It’s a very misleading story.
January 6th, 2008 at 7:29 pm
Paul Navone’s story reminds me of Anne Scheiber’s story. She died a recluse in 1995 at 101. After having spent years as an auditor for the IRS, and never getting a promotion even though she was one the department’s most diligent employees, she retired in 1943 and spent the rest of her life investing in the stock market.
There has been alot written about Anne Scheiber. She lived in a 450.00 per month rent controlled apartment in NYC. She never earned more than $3200.00 per year. She didn’t let the money she lost during the depression stop her from investing most of her life savings in the stock market. She learned from being an IRS auditor that the best way to make money was in the stock market.
When she died in 1995, she gave her 22 million to Yeshiva University, a school she never attended.
January 6th, 2008 at 9:12 pm
Did someone give him those rental properties? If not, then he had to buy those rental properties using his less than $11/hr income. Hence, whether he’s living off rental income NOW is irrelevant.
January 7th, 2008 at 5:56 am
Great story! But, the first thing that came to mind was - this guy must not be married or have any children. It seems that most people(not all) who achieve these rare feats are usually childless and unmarried. I wonder what the stats are on this idea?
However, it’s still a great achievement.
January 7th, 2008 at 11:24 am
Am I the only one who finds this only half-inspiring? I mean, bingo at McDonalds? I understand living well below your means, and earning through hard work, but sometimes you need to expand your horizons and experience the world beyond Bingo dobbers and a crummy fast food chain.
January 7th, 2008 at 4:28 pm
Wow, I can’t believe all the people here telling him how he should have lived his life. If he followed your advice, he wouldn’t have been as successful as he had been.
The successful man is one who defines success for himself and achieves it. It doesn’t matter to him what you think of him.
January 7th, 2008 at 8:26 pm
[...] Get Rich Slowly says forget the bling. [...]
January 8th, 2008 at 12:12 pm
I know Paul Navone, and do not feel sorry for him. He is a happy individual with incredible wit and common sense. He enjoys helping others and is finding this experience the best in his life. The experience of donating is opening up a whole new world to him and he is loving it. He is proud to have saved so much to make such a difference in the lives of so many others.
January 8th, 2008 at 1:48 pm
Two stories hit the front page of Digg in one day — congrats JD!
January 8th, 2008 at 2:09 pm
My Father did the same thing, but he never made close to $11/hr - he always made $7/hr or even minimum wage…didn’t have a tv for 14 years - does now though (but doesn’t have a phone)…eats at free meal sites…never drives…never goes to McDonalds…just invested everything he had in the stock market since he was young. Everything he has he got from someone discarding it (for free).
He’s a genious, happy, and one of the nicest men on the planet, and my hero.
January 8th, 2008 at 2:37 pm
I call BS. Just the stock market 11 bucks an hour
January 8th, 2008 at 2:55 pm
I was raised as an episcopalian and we always valued thrift, beige food and economy above all else. my church was tiny and austere but had one of the richest congregations in the state. ignore bling and flashy things, people who have real wealthy don’t care about those things.
January 8th, 2008 at 2:55 pm
I think this guy is a great example of how to wisely invest your money - and that anything worth doing is worth doing right… and that means exercising patience.
HOWEVER… c’mon. His life has been half-lived, and he’s just sitting on money for the sake of it. If he’s not going to go out there and explore the world in his twilight time… then what has all his work, and investing earned him?
Absolutely nothing. The point isn’t just to become wealthy, but to use that wealth as a resource to do more than donate.
How about investing in some idea a kid may have? Maybe traveling the world building homes for people and experiencing different cultures.
Fuck - ANYTHING other than morning Bingo at McDonalds.
Come to think of it. This guy’s an asshole.
January 8th, 2008 at 9:03 pm
This is a very nice story, but the property part is glossed over in favor of the simple lifestyle angle. For folks who are growing up now, investing in property very likely holds far less potential for wealth than folks of this gentleman’s generation.
For instance, my in-laws who are about the same age as the man in the story, bought a house about 40 years ago for around $40,000. That house is now worth about a million dollars because it’s in what became Silicon Valley. That’s luck. I’d like to know if this fellow was similarly fortunate or if he really did amass a fortune through frugality and a lack of self-indulgence.
For every person who gets rich because he buys property in just the right place, there are several people who see little or no appreciation in the value of their purchases.
January 9th, 2008 at 2:36 pm
Sorry Sceptic - it’s true…my Dad has several million in stocks today - and he’s younger than 70…and he never had any investment properties - only stocks…never owned a house either!
I don’t know how much the dude in this story has, but my Father crushes this guy in the “not worldly” or “self denial” category…My Dad never spent a penny (well not literally)…but almost.
Some of my Dad’s stocks have increased 100 times in value in 30 years. If you’d've invested 10,000 in Hershey in 1975 it would be worth 1 million in 2005..now about 500 thousand…but that’s just 1 stock. He has others in the same category of explosion. When you don’t have a tv, and you want to make the most of your money - because you barely make any, and everybody wants it/yours, and you read books and study the charts like your life depends on it (instead of watching tv…or pissing it away on $3.50 mocha frapps) - which it does…you learn…you walk humbly…you ask the Lord for wisdom…he gives it…you never treat yourself special, because you’re not…the Lord lifteth you up.
True story.
Hey Steve - When you invest in stocks you provide capital to all the business to do what they do for themselves and mankind.
January 9th, 2008 at 7:00 pm
I can completely understand the value of personal finance. For some people it is simple common sense. I saw my dad being frugal as a child to provide a roof and an average lifestyle for me and my sisters, often compromising their quality of life to provide happiness for us. In doing so, this has equated to us being more independant and in control of our finances. As a child, I started delivering newspapers saving up my $40/month to buy my own TV. I had $40,000 worth of university loans I paid back in about less than 2 years by being EXTREMELY frugal ( living in a bachelor apt, buying discount items, etc). By living in the bachelor apartment for 5 years I was able to pay off the loans and save up for a car (a new cheap one, $14,000) and a downpayment on a $320,000 house ($65,000). I am by no means rich at all. I make about $72,000 per year which is decent and I don’t have children, however, I know that even if I did, I would adjust my spending habits accordingly. I am currently saving to invest in a business. I do a lot of work myself rather than hiring people (I like to read and learn a lot about evrything). I buy sale items and sometimes in bulk. Virtually every monetary choice I make I think about first and it’s consequences on my future. I didn’t write this to blow my own horn, as I am just a drop in the large bucket of consumers, however I just wanted to show everyone that if you put your money where mouth is you can really do well financially without being rich. Again, the bottom line is fiscal responsibility and a little common sense.
January 10th, 2008 at 4:35 am
While it is impressive that he could amass such a fortune I fail to see what such wealth has done for him (besides get him into the news and allow him to give money to someone else). He has lived a life that many would call “small”. His wealth has not enriched his life, has not allowed him to experience the wonders of the world. Some would say that he has led an unexplored life so intent was he on saving, investing and frugality.
You only get one chance at life and I would prefer to live it to the fullest (while this doesn’t necessitate purchasing “bling” such as jewelry or Ferraris it does mean expanding ones horizons, experiencing as much as one can and having no “what ifs” on ones deathbed).
January 10th, 2008 at 9:33 am
BS.
“Navone shops at flea markets, drives an older SUV, and rarely buys anything at full price. He doesn’t own a phone or a television.His wealth came from frugal living, wise investing, and from owning several rental properties.”
Ultimately, frugality didn’t have much to do with this guy’s net worth. Not owning a phone or TV and shopping at flea markets didn’t make him rich: Buying real estate and holding it a long time in a very hot market for a very long time made him rich.
I’m sure that in such areas you will find plenty of ‘unwise’ people who bling out their SUV and have all the luxuries and are rich too because of the real estate appreciation. (I know alot of them) The diffrence is that those people just don’t make great stories like this recluse weirdo does.
January 11th, 2008 at 5:06 am
i don’t understand my life. I am a mother of 3, 10 grandbabies, no education, a waitress and struggel daily to make ends meet. How do I become financially stable with no real job, no education, no money, no dependable transportation?? How do I get and afford healthcare? Hangin by a thread and no one looks beyond their noses. til its to late.
January 14th, 2008 at 12:36 pm
I can’t believe how closed minded some of you people are….just because he did not live his life the way that you would have, does not make him boring or some of the other terrible things I read that people called him…whether he made a choice to buy property and made millions later on it..is part why he was smart…that is an investment no different than his investments in the stock market. I am sure that in his life {which you all forget was his choice} he was happy. That is part of the problem nowadays, we all assume unless we can do all the travelling that we want, or buy all the things that we desire we are somehow not fullfilled and not happy. As far as I am concerned when I am ready to meet my maker, I am sure that I am not going to care where I have gone or what I have done…It is all about the life I lived and am I loved or have I loved much…really people are we on this earth to only acheive wealth anyways…do you take it with you, I am sure when I get to heaven I will be able to travel to places so amazing, so much more awsome than any place on this earth could ever be….
January 14th, 2008 at 1:29 pm
Let’s not forget that if he had wanted to travel — well he’s certainly got the means to travel. He chose not to travel.
I can understand that — I have a very short list of travelling that I care about. I’m most content when I can stay at home, settled into my normal environment and routines.
January 14th, 2008 at 3:41 pm
Unless the rental properties somehow managed to magically manage themselves, then they were at least the equivalent of a part time job, therefore the claim that the guy never made more than $11 an hour is false.
January 14th, 2008 at 4:28 pm
No it’s not false. It’s profit from self-employment, not income earned and paid by an employer. It’s a different category of money altogether.
January 14th, 2008 at 5:06 pm
How ridiculous. Using that logic someone that starts their own lawn mowing empire after borrowing their parent’s mower to get started could become a billionaire after never making more than zero dollars an hour.
January 15th, 2008 at 2:38 am
Yeah, kinda amazing how that works, isn’t it, Justin?
An hourly wage is not strictly dependent on results. Profit from self-employment is. If you get $10 per lawn and you mow only one lawn an hour, you gross $10.00 / hr. But, if you hustle, you can get 5-6 lawns an hour for $50-$60 gross. If you put 3 guys on that equipment @ $10 per hour, you should get at least 10 lawns per hour for a gross of $100 - $30 in wages. That would pay you $70 per hour for driving the truck, fetching the ice water and keeping the books.
That would make you a $70 per hour water boy … which is a whole lot better than pushing your Dad’s mower through the subdivision.
Barb was headed in the right direction and db drove the nail on home.
This man has lived his life just as he pleased. Along the way, he acquired multiple millions. Which of you nitpickers can say the same?
No employer can ever give you the full value of your contributions and still show a profit. Self-employment ALWAYS does. (One of life’s brutal little lessons because quite often our efforts aren’t worth as much as we thought they were.)
BTDT … and I’m doing it again right now.
January 15th, 2008 at 2:19 pm
[...] Paul Navone is 78 years old. He has never made more than $11 per hour at his job and often works more than 60 hours a week. He has lived a frugal life and trudged on through highs and lows in the stock market. Patience paid off. As a millionaire, Paul recently donated $1 million to Cumberland Country College. [...]
January 16th, 2008 at 3:13 pm
[...] Paul Navone donated his first million to Cumberland County College. And he also donated his last million [...]
January 20th, 2008 at 12:59 pm
it’s good to save, but life should not be about saving each penny and not enjoying what little money you have. If you’re a penny saver all your life, you’ll lead boring life in greed. Take your family out for dinner, go see a movie, do the regular things. Personnaly I think its selfish. I bet his loved ones suffered around him due to his greed.
My jewish friends must love him..LOL *joke*
January 23rd, 2008 at 9:30 am
I don’t think this is inspiring at all.
It’s just logic. I start with $5,000 add $1,000 every month @ 10% within 57 years I’d have 29 MILLION dollars.
But you know what? I’d rather not have the money. I’d rather read books, have a life partner, kids, a TV, Netflix, a guitar and recording equipment and a social life.
I also have to pay high rent in the city where I was born; where I live.
Today, no one can live off of $11.00 an hour. You need a college degree (obtained with debt), or “no life, all work” in order to obtain the “American dream”.
Hrmm. Let’s see today soldiers come back after serving 2 deployments in Iraq. And go back to their home town Boyle Heights in Los Angeles. If they’re lucky, they save $45,000; about the same Mr. Navone started out with. And yet they can’t afford anything close to a rental property.
It may sound like complaining and it is. But things are different today. Mr. Navone took advantage of his rental market while having both luck and diligence/frugality. He was a unique person in a unique time.
However, I certainly wouldn’t trade places with him.
To conclude, people should be responsible and save. People should invest wisely and do what they love. In the end If you do those things you WILL be a millionaire at the end of your days. I just don’t believe in extremes; and Mr. Navone’s is one of them.
January 23rd, 2008 at 7:28 pm
[...] his achievements over the past few months. You can follow some of them on the following PF blogs Life Well-Lived is Not About the Bling – get rich slowly Seven steps to wealth – the example of Paul Navone - Lending Club Case [...]
January 28th, 2008 at 11:09 am
Is this the 1950s? Why are we all still striving to be the same. Live and let live.
February 11th, 2008 at 7:20 pm
I read about Paul Navone when I was checking my email. He is a person every individual should learn n live happily. I am 44 and starting to do things like what Paul is doing by slowly accumulating my money using the JAR method by T.Harv Eker method. Read his book and all can be millionaires, “SECRETS OF THE MILLIONAIRE MIND”….Thanks jsamy
June 6th, 2008 at 2:51 pm
[...] than $11 per hour. His financial discipline has been praised in blogs and on the news. JD Roth from Get Rich Slowly calls Navone a “real personal finance hero.” What is his [...]
July 17th, 2008 at 8:05 am
[...] riches, inherit wealth from someone or strike it rich in the lottery, you need income. And as this 78 year old man proves, you don’t need to earn a lot of money to become wealthy. It’s what you do with that money that [...]
July 23rd, 2008 at 7:05 pm
Better to burn out fast than be old and rich.
January 8th, 2009 at 10:43 pm
How can you say “NO ONE” can live on $11 an hour in this day and age?! I make less than that, but I’m doing fine! I can’t believe you would say something like that… I guess you just have no concept of what life is like below a certain income bracket…
July 17th, 2009 at 12:07 pm
The real question is whether or not Paul could reproduce those results if starting off as an 18-year-old today. I sincerely doubt it.
Like Paul, I’ve always been a long-term investor trying to use time, not timing, to make money. I live on less than 20% of my pre-tax income, yet my savings are always diminishing. Why? Because of inflation.
The US dollar has lost 95% of its value since the Federal Reserve was created in 1913. Most of that loss happen in the past 30 years. I, and many other Gen X-ers, do not have blind faith that it is impossible for the US dollar to become a defunct currency. It is not only within the realm of possibility, it is within the realm of probability.
In 2006 the Federal Reserve unilaterally decided to stop reporting the amount on money in M3. This removes the only tiny bit of transparency and confidence in our monetary system. M3 is money. Inflation is, by definition, an increase in M3. Without knowing what M3 is, we cannot have any confidence in the US dollar, especially when we know the only reason not to report it is to cover up a giant increase in its level.
Today, you can’t buy a CD or other low-risk investment that even keeps up with the CPI, nonetheless M3. Stocks offer even lower dividends in exchange for the largely false promise that they will make up for it in an increase in principle. Stocks used to offer higher dividends to make up for the greater risk.
I have seen federal taxes take 25% of my income, other taxes take another 5% of my income, and inflation take close to 50% of my income. I do not have the confidence that the US dollar will even exist when I’m 70. So, as much as I would like to follow Paul Navone or John Boggle’s advice (and I had throughout my 20s and early 30s), I cannot reconcile their philosophies with the realities of our ridged financial system.
Outlaw inflation, an increase in M3, and get rid of fractional reserve banking, and then people can follow the slow-but-steady path.