The fourth factor of accumulating wealth is believing that financial security trumps displaying wealth through high-status purchases. The authors point to Mr. W. W. Allan as an example of a millionaire who maintains a regular, middle-class lifestyle. Mr. Allan drives a modest, old car and even refused the gift of a Rolls-Royce from his business partners. Such a car would draw unnecessary attention, especially in the industrial areas he travels to for work. Mr. Allan also felt that owning a fancy car would make him feel pressured to upgrade everything else in his life, while driving a modest car protects him. People like Mr. Allan blend in with everyone else; their cars are not targets for theft.

Contrary to popular belief, most millionaires in America do not drive luxury-brand cars, or even purchase new cars most of the time. Many of them buy American-made vehicles, often networking with dealerships and giving their business to their clients. They do not waste time shopping around, as their  energy could be used more effectively at work. They quickly make a decision, often buying lightly used, good quality vehicles.

People who only buy used cars tend to be frugal in other areas of their lives. Predictably, they are good at saving money. Stanley and Danko reiterate their frustration with mainstream American culture and its tendency to promote consumption. While many people cannot easily increase their earnings, they can learn to rein in their spending.

Stanley and Danko provide another contrast of two neighbors. Dr. Bill, a professor, earns $80,000 a year, but became a millionaire by living well below his means. While not an entrepreneur, Dr. Bill has a steady income and budgets well. The authors clarify that just because entrepreneurs are overrepresented amongst millionaires does not mean that everyone can or should have their own business.

Dr. Bill's neighbors, the Normans, earn twice as much as Dr Bill. However, they have a much lower net worth due to high consumption. The authors praise Dr. Bill’s attitude, noting that he never finds buying a used car embarrassing; instead, he takes pleasure in getting a great deal. The authors note the irony: people like the Normans bear the financial brunt of depreciation before selling their cars to people like Dr. Bill, who are much more financially secure.

The authors build on their argument that frugality is an essential part of accumulating wealth. Their example of car shopping is relatable and shows how wealthy people often differ from others in how they make decisions. The authors’ discussion of American culture adds a layer of critique, as they observe the societal pressure which motivates people’s spending habits. They report that many millionaires find it is easier to make money than to save: “Why is this the case? Because we are a consumption-oriented society. And the high-income-producing nonmillionaire neighbors of used vehicle-prone shoppers are among the most consumption-oriented people in America” (131).

The author’s negative assessment of consumerism in America challenges the reader to consider how their own habits have been influenced by cultural norms.

Chapter Lessons

• Prioritize financial security over flashy new purchases
• Buying new cars regularly compromises savings
• Network with dealerships and look for sales to save money on car purchases
• Consider how your spending habits have been influenced by friends, neighbors, and the media

Reflection Questions

• The authors offer different case studies of car shoppers. Who did you identify with? Why?
• How would you would live differently if you felt no social pressure to own certain things?