As someone with a 12 year old Nissan, and buys the cheapest beer beer I'm sympathetic. But what's the point of being a millionaire if you aren't spending? You can just do that on a regular low stress job.
To add to the argument about security, the average stock market return after inflation is around 7%. With investable assets of $1 million, that means you're being paid $70k/year, just for already being wealthy. I imagine that no matter how low stress a job can be, it can be even lower stress knowing that no matter what happens, even if you never work again, you would have sufficient income to live.
(This glosses over the variability of the market, but that just adjusts the amount of wealth needed relative to the yearly expenditures in order to continue indefinitely, and the principle still holds.)
Yeah that 7% is likely an illusion. If we kept up 7% a year forever just about every professional could retire at 50. But its unlikely to continue, we've had a 50 year bull market that is long overdue to end.
Thank you for finding a simple way to describe why that book bothered me so much. The author offers no room for rational dissent. You are either with him, or you're a fool.
In his value system, the additional security offered by millions is worth sacrificing every other potential want or desire in life for. I find that ridiculous, addition non-bullet proof security is just ONE of many things which must be evaluated for its relative worth based on ones own value system.
I say non bullet proof because I feel the author completely disregards the possibility of war or the country collapsing making the "security net" the money could otherwise buy be nullified entirely.
He also implicitly disregards mortality. The opportunity cost of every year spent with a focus on accumulation is one you can never get back. I guess in this case I'm thinking a lot about travel or living abroad at a reasonably young age where the impact is absolutely materially different from retirement in one's twilight years in Thailand.
Having a seven figure liquid wealth affords you the freedom to step away from a toxic job, relationship or other situation. Things that induce a high level of stress for most middle class families like a $5-10k repair bill become mere inconveniences. College costs for the kids are manageable, health crises can be navigated usually.
Earning a massive salary and spending every last dime is a far more stressful way to lead one's life and likely much less enjoyable save for some short lived hedonic rushes when purchasing that newest toy.
