Check out this article about Grace Groner, a woman who lived frugally and then surprised everyone by donating $7 Million to her alma mater.
The tried-and-true tips featured in the article include:1. Live below your means
Groner lived in a tiny one-bedroom cottage she inherited from a friend. She didn’t own a car and bought her clothes at rummage sales. Mr. Buffett lives in the same Omaha, Neb., home he purchased in 1958 for $31,500.
2. Let it ride
Groner let her investment – three shares of Abbott stock – grow untouched, a strategy of investing often touted by Buffett. While most stocks won’t see the type of returns that Groner saw, “value investing” – which Buffett has come to define as “finding an outstanding company at a sensible price" – and reinvesting the dividends will let you take advantage of the power of compound interest.
Groner was more circumspect than the megabillionaire. While Buffett’s wealth is well known due to the public nature of his position, only Groner’s attorney knew about her vast reserves until she passed away recently, giving her $7 million estate to her alma mater.
As Thomas Stanley and William Danko write in The Millionaire Next Door:
Wealth is not the same as income. If you make a good income each year and you spend it all, you are not getting wealthier. You are just living high. Wealth is what you accumulate, not what you spend.
I highly recommend both "The Millionaire Next Door" and "Your Money or Your Life." "Your Money or Your Life" is really great for illustrating the point called "Enough" (as in, I have ENOUGH money to live the life I want to live. It teaches you how to get there and how to devote your life to what really matters... in my case, serving the LORD! I'm not sure about their specific investment recommendations, but this book changed my mindset on money a few years ago. "The Millionaire Next Door" amazed me and let me know that "I can do it!" I hope it will encourage you too.
Again, please click on the links above an read about the books, even if you're (like me) too cheap to buy them, LOL!