A Life Well-Lived is Not About the Bling
Published on - January 5th, 2008 (Modified on - October 14th, 2009) (by J.D. Roth) 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.
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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.
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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.
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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.
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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.
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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.
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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).
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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.
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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.
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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….
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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.
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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.
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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.
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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.
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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.
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[...] 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. [...]
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[...] Paul Navone donated his first million to Cumberland County College. And he also donated his last million [...]
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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*
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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.
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[...] 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 [...]
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Is this the 1950s? Why are we all still striving to be the same. Live and let live.
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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
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[...] 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 [...]
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[...] 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 [...]
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Better to burn out fast than be old and rich.
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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…
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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.
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I agree with many of the comments here. It is great to save money. However, to save money all your life and not enjoy some of the fruits of your labor is useless. I don’t want to save all my life and only to enrich someone else’s life while I live like a pooper.
I think with everything in life, moderation is best. Extremes are never good. Save for a rainy day but also enjoy some of what life have to offer.
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while iw oudl not agree with all of his life choices, if hes happy, good for him. What a great story for this man to be able to donate a million dollars to a cc. I dont think any of us should judge him for how he lives his life, just because he has money doesnt mean he wants to use it. Maybe his plan is to donate it all to charity when he passes away, or perhaps his family. Either way, great story and good luck to him for remaining years of his life.
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