I keep telling myself I’ll share reader e-mail more often. You folks send me great stuff. For example, here’s Ruth’s story about her own millionaire next door.
I loved reading about J.D.’s “secret millionaire” neighbor. This is a story about my own “secret millionaire” neighbor. He actually lives in the next suburb.
This local middle-school math teacher retired about five years ago, and became a private tutor. Since retirement, he works seven days a week — literally. By choice. He is a widower, with three adult kids.
Anyway, he had an old wreck of a car ever since I’ve known him (about eight years). He tutored my oldest son very occasionally and my daughter and middle son very regularly. One day last year, he warned me that he didn’t know if he could make my daughter’s Tuesday appointment, because he wasn’t sure if his car would make it up the hill. “No problem,” I told him. “If it doesn’t, just call me and I’ll pick you up.” He apologized and told me that he was due to pick up his brand new car that Friday.
His car did make it. (Sorry, can’t remember what it was. A French car, I think a Peugeot. It was my youngest son’s age — 20 years old at the time.) The following Tuesday, this man showed up proud as punch with a brand new Ford Fiesta — in bright purple!
I’m guessing that a retired teacher in his late sixties didn’t actually choose a bright purple car! He must have gotten a great deal on it.
He also has a small house on what has now become a main road, with four- and five-story buildings on either side of him. The developers have been trying to buy him out for many years. He told me that whenever they call, he pretends to be deaf. He’s a hoot. And definitely pretty much the epitome of the “secret millionaire”.
This man stopped tutoring my daughter only about two weeks ago. After so many years, we were both tearful. I still see him around town all the time, and we always wave to each other or honk. In private, my family calls his car “The Mathmobile”. One day I suddenly realized how much I’d probably contributed to that new car over the years. But that’s beside the point! I hope he enjoys his car, and that my community continues to enjoy him for many years to come.
This is a fun story. I know that some readers think it’s crazy to accumulate wealth but still drive a beat-up old car. But I think that as long as Ruth’s neighbor is happy, that’s all that matters.
This article is about Cars, Choices, Frugality, Real-Life Saturday, 20th June 2009 (by J.D. Roth)


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June 20th, 2009 at 2:17 pm
Retired math teacher? Yeah, he probably DID pick the purple.(Though, my fave color is purple, so maybe I’m biased.)
Hopefully the new car will treat him well, but they just don’t make ‘em like the used to. Sometimes I think the best this is to buy an older car from the days when you actually COULD fix them — or find a neighbor who could, at least.
June 20th, 2009 at 2:35 pm
That was a fun read…. more letters, more emails!!
June 20th, 2009 at 2:41 pm
I can’t help but feel that those readers that “think it’s crazy to accumulate wealth but still drive a beat-up old car” are too caught up in the materialistic, consumeristic, and advertising based times that we live in.
The money spent for a brand new shiny car could instead help cure world problems. How much of a sacrifice is it really to drive a cheap(er) car when a large percentage of the world’s population survives on somewhere near a dollar a day?
To take the point a step further, get rid of the car altogether and save a ton of money using public transport and the occasional taxi or Zipcar rental. Just because we live in an uber rich country where it’s relatively easy to save up for a slick new sports car, it seems rather naive to think that such a purchase is necessary or even justified. The other lives you can change with the money you save will make a world of difference.
June 20th, 2009 at 3:05 pm
Worth keeping in mind that a good deal of his prosperity is probably due to his membership in the dreaded union…
June 20th, 2009 at 3:10 pm
Great point, Matthew! Just because you can afford something, doesn’t mean you should buy it! And hey, if having a fancy car or t.v. or whatever just isn’t a your thing, then why should anyone look down on you and call you cheap! Spend money on what’s important to YOU.
June 20th, 2009 at 3:32 pm
Perhaps one of the reasons he is wealthy is, he does not replace his car every few years. He actually gets his moneys worth out of his investment.
His car is paid for, instead of having monthly payments, he has money to save.
The same with other consumer goods. How many have gone out and replaced perfectly good TV’s just because the flat screen and then the Flat panel TV came out.
You used to be able to repair Televisions and other electronics. Now you have to replace them.
Not only do pocket books suffer, the landfills do to.
So wait an extra year before you replace you latest toy, and then decide if you can wait another.
A plus in driving a junker/ older car parking lot dings are fewer as people do not want to park next to you.
So smile today and keep you present vehicle, bank what your payments would be and pay cash for the next one. I have actually gotten a good discount asking what they would charge me if I paid cash.. they look at me and laugh, they do not think I will have it, since I drove up in a junker.
We need to go back to the days when the only credit you carried is the house payment.
Just think what you would save in interest, if you just make two house payments the first month.
June 20th, 2009 at 5:06 pm
#3@Matthew
I understand your feelings about giving to those less fortunate, but have you ever read The Millionaire Next Door? Those wealthy “drive the beater car” millionaires are among the HIGHEST percentage of people who GIVE BACK to all kinds of churches and charities. I don’t think there is anything wrong with accumulating wealth by being frugal and occasionally buying something expensive. Where would the fun be in life if you couldn’t occasionally spend some hard earned money on a treat for yourself. Anyway, my point is that many people have misconceptions that the frugal wealthy are just penny pinching misers. Most give more of their money to good causes then the average American.
June 20th, 2009 at 5:07 pm
Matthew (#3), I do just want to point out that there are plenty of people in the United States who do legitimately need a car or something similar: public transit, Zipcars and taxis are strictly urban conveniences. Folks in rural areas have access to none of these. One of the many things that makes rural poverty so difficult is the lack of transportation options and the need to maintain a vehicle.
Just something to keep in mind when we’re making sweeping judgments about peoples’ spending habits: everyone’s situation is unique.
June 20th, 2009 at 5:24 pm
I’m confused — how does she actually know this guy is a millionaire? He sounds perfectly happy and reasonably thrifty, but that doesn’t mean he’s a millionaire. Is that just an assumption since he has a pension, gets paid for tutoring, and doesn’t buy new?
June 20th, 2009 at 6:11 pm
im with Cely you don’t actually know if this particular person is a millionaire…
June 20th, 2009 at 7:01 pm
The “don’t buy a car, use public transportation” argument gets old when it is preached to the masses, forgetting that a large majority of the population still live in rural areas where the only public transportation is a school bus flying down the dirt road.
June 20th, 2009 at 8:00 pm
I have $400,000 cash in the bank, and will probably make $500,000 this year, and I drive a 9 year old car i bought 2nd hand 2 years ago for 8k. It’s probably still worth about 6-7 k now. I LOVE my car. It hasn’t broken down, looks great, and love the idea i’m getting to point A at a much cheaper rate than somebody who spent $40K on a car for example.
I get giddy when a friend spends big bucks, but not me. It’s awesome. I get the same feeling that most people get buying things they want, when I see others do so.
My current prized possession now are my two tennis rackets that were a gift. Probably cost about $320 total (one for backup), and I play on free courts for hours. Great entertainment that keeps on giving.
June 20th, 2009 at 8:33 pm
The public transportation argument is used by those with access to it ( whether they use it or not, and frankly I doubt many of the elitists use the public transportation), live in very high cost of living areas, and/or have personal preferences against personal space/privacy/people with different preferences.
Personally, I enjoy living in an area without public transportation- with the tradeoff being that my kids actually have a yard and our house costs 1/5th of what some people pay for cramped city apartments with no quality of life, we actually have grocery stores and access to fresh and affordable food, among other things. In addition we like nature, peace and quiet, being able to drive to events, out of the way things, and so on. I will keep my car ( we have 1 for 4 people). Thanks.
June 20th, 2009 at 8:39 pm
Apologies if this has been mentioned before, but the current documentary “Herb and Dorothy” tells an amazing story of secret millionaires.
It’s a thought-provoking movie about a postal clerk and a librarian who chose to live on one salary in a one-bedroom rent-controlled apartment in New York City.
They used the second salary to buy art, and over their nearly 50 years of marriage built an astonishing collection of modern art, 1,000 pieces of which now resides in the National Gallery, with another 2,500 pieces shared out among another 50 museums (one in each state.)
Herb an Dorothy Vogel never sold a single piece of their priceless collection — they gave their collection away, and then began to build a second collection, because they just love art.
The Vogels live an unusual life stripped of much that we would consider essential, and rich in incredible art and amazing friendships with artists. When I saw the film with a friend, we spent the next three hours discussing the issues of wants, needs and value; it’s a movie that can’t help but spark discussion about what real wealth is, and whether we have the courage (or craziness) to pursue it.
June 20th, 2009 at 8:54 pm
I just moved to a “tax state” - seems like everything here is taxed - but its much safer, better educated and a better place to live than the no income tax I just moved from - so at least you get what you pay for. But one of the first things I noticed is that people drive much older and much more modest cars here. Then I registered my car and paid the property tax on it - what? property tax on a car? and its annual? Yep. So not only do you pay sales tax EVERY time you buy a car, but you pay property taxes and they can get steep on a really nice new car. So now I know why I see well to do people pulling out of really nice homes in modest Buicks and such… that’s how they got the nice house - they didn’t blow money on the cars.
June 20th, 2009 at 8:58 pm
“In addition we like nature, peace and quiet, being able to drive to events, out of the way things, and so on.”
Thus demonstrating its always better to have someone else pay the bill for your choices.
Your “peace and quiet” requires you to disturb the peace and quiet for anyone who lives where you need to drive. Not to mention endanger their lives. Any vehicle traveling over 15 mph is a danger to anyone not protected by a ton of steel. So you have a nice safe yard for your kids, while endangering the lives of the children who live in those cramped urban apartments if they dare to leave them.
The idea that use of an automobile is a private choice is frankly ridiculous. Huge amounts of most urban areas including streets, garages and parking lots are devoted to making it possible for someone to drive places.
And it is those cramped urban areas that produce most of the wealth and jobs. Which is why “most people” live in urban areas. People who live in ex-urbs and rural areas are mostly leeches, depending on others to pay for the urban services that they actually require to support their lifestyles, while pretending they have no use for them.
June 20th, 2009 at 10:42 pm
We see the filthy rich on TV and get the idea that most of our nation’s wealthy actually live that way. I read an article saying that most live very frugal lifestyles. They worked hard to get the money and now they want to hold on to it. Think of this: How many more people could be considered rich if they just did a better job of managing their money? We give our “riches” to the credit card companies in the form of interst and fees.
June 21st, 2009 at 12:56 am
There’s no side to this story about how the author knows this math teacher is a millionaire. It’s relevant to show some trace of that detail in the story because otherwise it’s not really a story about “a secret millionaire” — it’s just a few notes about a thrifty retired math teacher.
If you’re going to make a story about a secret millionaire, it has to in some way touch on that aspect (either through his words, a snippet about how he lives his life on vacation). J.D.’s story about his millionaire friend accomplishes this because he talks about the thrifty side and a few details about the “secret millionaire” side, making it a story about both realities. With this guest story, how would we know this man is a “secret millionaire” except for the title?
June 21st, 2009 at 7:10 am
From a purely financial point of view, I save money by driving to work rather than taking public transport. From home to work is two hour daily commute, and costs approx. $35 a week for petrol, about $1000 a year for insurance, registration and tyres, and about another $1000 a year for regular car maintenance. Perhaps add another $200 a year for irregular repairs like a new gearbox, brake pads, etc. My car is ten years old and cost around $10,000 when bought new, so annual depreciation was $20 a week over ten years. All up, driving costs me about $92 a week.
In comparison, taking public transport to work takes at least 3 hours for the daily commute - requiring either two bus trips or two bus trips and a train ride each way. The cost for public transport is slightly over $15 each day, so the weekly cost for just commuting to work would be $75 a week. The costs for using public transport to replace the car for weekend trips to the kid’s sporting activities, the library, shops etc. would add at least another $20 per week.
So, using the car saves me $3 per week, 5 hours of commute time per week, and provides a much more convenient means of transport for the weekend trips compared to using public transport.
Of course, uing the car instead of public transport is bad for the environment. But if I wanted to minimise my ecologicl foot-print we should live within walking distance of my work place, or else ride a bike to work!
June 21st, 2009 at 7:53 am
Agree completely with [b]16[/b] and 18.
June 21st, 2009 at 9:46 am
I agree: badly written story. If this were a foundation grant I would ask: wheres the proof the guy IS a millionaire?
June 21st, 2009 at 6:13 pm
A car is transportation, not a fashion statement– this retired math teacher figured that out!
June 21st, 2009 at 8:17 pm
I’ve got to agree with Cely and Ell, who state that this story is missing something. I love the way that JD “puts us in touch” with other readers, but this one was a miss. Some editing would be in order here to make this more of a story, or else cut it — it wasn’t a stand-alone.
June 22nd, 2009 at 5:09 am
Like the other commenters, I was disappointed that there was no reference at all to the implication that this man is actually a “millionaire.” It sounds to me like he lives a lifestyle of a typical penniless retired schoolteacher. Their generous pensions would easily support the kind of lifestyle described in the story, without any additional savings on his part at all. Especially when you add the tutoring income.
June 22nd, 2009 at 8:50 am
I would really like to know what Bulldog Gin Co. does for a living, and what he/she studied. I’m an A university student, and I doubt I’ll ever make a fifth of that money. Any chance you’re hiring, if you believe so strongly in strong students with good work ethics?
June 22nd, 2009 at 9:07 am
Bulldog Gin is the same user as SquawCreekRentals, for those who follow the comments.
June 22nd, 2009 at 10:47 am
Ross,
You’ve got to be kidding. I can’t believe JD allows you to spew that nonsense on his site. Perhaps you should recheck your population densities. Fact is, most Americans live in the suburbs and have since the mass exodeous of the 1950’s. Endangering lives, leeches….give me a break.
June 22nd, 2009 at 3:41 pm
I thought this story was fun and I am sad to have disappointed so many of you.
It’s true, I don’t “know” for a fact that this man is a millionaire. I’m in Europe, this man lives in the next suburb, there is no way I could ask him that, that question goes well beyond what is considered polite conversation here.
This said I’d bet the farm that he is, because I know how much he earns, I know how much his home is worth (even before the developers got involved), and I can see how much he spends. We’re a small community. And yes, he could be a gambling addict or a drug addict, but it’s extremely unlikely, given his work ethic and availability.
I’m sorry to have disappointed so many of you.
This said, I am also sorry that some of you couldn’t take this story at face value, especially since it was a story or a version of a guest post. When this story “happened” to me I thought it was fun, I just wanted to share with other like-minded folk (or so I thought). All I saw was how worried he was about making it to my DD’s math lesson, and how proud he was rolling up in that bright purple car after finally trading in his 20YO car.
I’m sure JD will be much more careful in future about posting other entries from readers. Whether that’s your loss or your gain is up to you to decide. I think it’s always edifying to read somebody else’s point of view, even if it’s not “perfect”.
JD, I’m truly sorry.
June 22nd, 2009 at 4:19 pm
No need to apologize, Ruth. I think it’s a fun story, and I trust your judgment.
However, in order for my readers to trust my judgment, I do think I need to be a little more cautious in the future. I appreciate the feedback from everyone, and will do my best to use better filters.
June 22nd, 2009 at 7:10 pm
Something I would love to read about is the statistics of how many GRS (or PF in general) readers NEED cars because of living in rural areas, or even larger cities with undependable public transit. For example, the closest large city to us has the bus system, but it’s dangerous and dirty - something that needs to be considered, I feel. The comments about not needing cars get very, very old. Not everyone lives in major cities with decent public transportation. I would say the vast majority of us who have cars have them to get back and forth to where we’re going, NOT just for the heck of it. That is something I would LOVE to read about, and something I think these “USE PUBLIC TRANSPORTATION!” zealots could really learn from.
June 22nd, 2009 at 8:23 pm
@Ross[16],
I agree with @Ben[27]. In addition to Ben’s argument, I would also propose that rural areas are the major centers of food production. So who are the leeches and who are the producers, again? I would think that vitriol of this type should be openly discouraged by JD on this site.
Also, a lot of these comments are discouraging in a Randian sort of way. For those who don’t know what I’m talking about, I would suggest renting Atlas Shrugged on your next library trip. I expect my productive work to result in my benefit, not the benefit of others, and I’m not ashamed to say that.
June 23rd, 2009 at 7:17 am
@Ruth
You have absolutely nothing to apologize for. This was a fun story and while most are happy that you shared it, there are always a few folks who take some pride in pointing out flaws in the contributions of others, regardless of the magnitude of said flaw. (I’m looking at YOU #21/Maharani).
I for one enjoyed your story and would be willing to wager that this guy’s a millionaire, or at least well off enough so that he doesn’t need to move to an urban area and can continue leeching like the rest of us who love to endanger lives of others for our own sense of self-worth.
Thanks again for sharing, I hope this little episode hasn’t spoiled the GRS experience for you!
June 23rd, 2009 at 1:28 pm
@Ross - Ignore the haters. Preach on, brother!
@Justin - Take a look at which states pay the most taxes and which states receive the tax revenue, and get back to me on whether the rural areas are the “leeches.”
June 24th, 2009 at 1:58 pm
Thanks Ruth & JD for a cute story! Love it.
I realize that I am EXTREMELY fortunate to live in an area where I don’t have to have a car, and can still have a beautiful place to call home. Some people drive cars because they want to - it’s a free country, right? - but most people drive because they have to. Of those people, for some their car is merely a means of getting from place to place; for others it’s something they choose to spend a little extra on for whatever reason, be it comfort, style, passion, whatever. And there are probably some who are trapped by their belief that their value as a human is expressed by the car they drive.
I expect our math teacher does not have his self-worth tied up in his car. Maybe he drives his cars to death and then buys whatever he can get his money’s worth for. Maybe he has always wanted to drive around in a purple car and has been saving for the entire 20-yr life of his old car. I love to hear about folks who enjoy their lives without a lot of expense. More power to them!
June 25th, 2009 at 3:17 pm
I go to a small engineering school and have noticed the same thing with the chair of my major. He lives in a small house by himself, he probably makes over 100k a year, he drives a small ford, has no internet or cable at home. We know this guy has to be worth tons of money if he isn’t spending anything on those normal utilities or materialistic items.
June 25th, 2009 at 4:13 pm
I come from a small town where everyone knows — or thinks they know — everyone’s business. So, it’s not out of the realm of possibility that someone could have a pretty good idea of someone else’s finances.
However, it’s hard to know those things for certain. Perhaps they are paying off a lot of debt or had other large expenses or periods of lower or even no income at some time. That’s certainly the case for my husband and I, though we have a good income now and are working on things. (Though, I don’t see our lifestyle changing drastically when have more money as we’re pretty happy with what we have.)
Also, and this might be considered a large “expense”, some people give A LOT of money to charity, family, etc.
June 29th, 2009 at 7:33 am
One car every twenty years makes it worth while to buy a new car versus used- who cares about depreciation if you run the car for 20 years? People only care about depreciation if they plan to resell the car other than at a pittance or to a junk (breaker) yard…
You must consider the maintenance. Plan to hyper maintain your car and buying new will help as you don’t inherit any other person’s problems with the car. Create a maintenance notebook to remember what you did when with the car…
Buy the best tires you can - cheap tires are more expensive as you have to replace them more often. I have a pickup truck that I got 100,000 miles out of the tires as I bought expensive long wearing tires and maintained the tires correctly…
July 9th, 2009 at 10:17 am
Love your posts, but for the love of grammar, commas and periods ALWAYS go inside quotation marks!!!
-Love,
Grammar Police
July 9th, 2009 at 10:29 am
Actually, Golfing Girl, that’s a strictly American thing — and even here many people prefer the international convention.
August 26th, 2009 at 7:37 am
Ross,
As a “leech” in a rural area that requires truck, not just a car I hope you don’t eat. Just for the record a lot of those “leeches” are farmers. How about we stop sending food to the cities? Typical cities have less than 3 days of food inside their borders. I think we’d go a long way to eliminating the leeches of society if we just bulldozed all the cities and turned them back to agricultural lands but I suspect you don’t want that either.
August 28th, 2009 at 2:53 pm
I too am from a very rural area. We provide much of our food. Stock and preserve. We own guns to protect and supply our own. I do not think we are leeches. I agree with MayT. The last new car I bought was a 1989 4×4 toyota. I still have it and it still runs. It is my secondary transportation, I drive a 1999 V10 4×4 gas is tough, but I travel 2 miles of dirt road to get to a hard road. No public transportation here. I cannot afford a new vehicle, insurance and such. But I owe no one, have a small bit of savings and hope to retire in 4 years (I am 53) not a millionare, but content.
November 17th, 2009 at 2:53 pm
@Ruth - the story was still fine. Don’t apologize - it’s the message
@JD - a poll on how many drive a car? Would be interesting
@Sarah #4 - Do you really think that the retired math teacher’s pension is Big Bucks? I’m married to a teacher - they make peanuts. Pension is less than salary, so you figure it out.