The Secret to Having Money at 80

A few years ago, I had a fascinating conversation with a gentleman who was extremely successful financially. He had managed to turn a relatively small inheritance into a very, very large net worth. During the course of our conversation I asked him what his secret was. How had he managed to achieve such success financially? He looked at me, confused, and said, “I’m not sure I understand the question.” I explained that what he had done was very unusual and certainly there was some secret that he could share. He replied “Carl, I bought boring things and paid them off over 30 years.”

The reality is there is no secret. Just boring stuff like spending less than you earn, setting some aside for a rainy day, paying down debt, and avoiding large losses. That’s it.

Simple. Boring. But certainly not easy.

This sketch and post originally appeared in the Behavior Gap Newsletter on October 7, 2010. Sign up to receive your FREE newsletter.