How to Spend Like a Frugal Millionaire

Amazing

I think the rich are the ones who help others out. they make the jobs so when our government takes the rich's money and gives it to the poor. the poor take the money and squander it because most of them are poor for a reason then all of the sudden there are no rich to create jobs, unemployment goes up and nobody has money not even the rich. the only people with money would then be the foreign people who are government pays to do stuff for them because they do things cheaper then all of the sudden are country has no money because our government sucked up all of our money tried to be smart and paid foreign people to do work for them a little cheaper and all of the sudden their taxpayers have no money to give them resulting in multi-trillion dollar debt!!!!!!!!! this is a great website read and learn!!!

Bob Dank of AR @ Oct 26, 2009 11:28:34 AM

"Nearly 70 percent of the economy is based on consumer spending"

"Nearly 70 percent of the economy is based on consumer spending"

This is a frequently misused factoid. The fact is that we don't measure produced goods until they're purchased by a consumer, so nothing we produce is added to the GNP calculation until a consumer spends money on it.

Here's an example: Company A makes a tire. Do you count that as GDP? Not yet! You have to wait till a consumer buys it. Otherwise, if it sits in a warehouse for 5 years and then gets recycled, you've counted something no one had any use for, and it's not really part of our productivity.

Let's say Company B buys it, instead of a consumer. Do you count it now? No. You may have to wait till Company C makes a wheel, and company D puts it on a car, and then Company E (a dealership) sells the car. Otherwise, you'd count the same tire 5 times: once each time someone added value to it by buying the previous group of items and doing something to them.

Another thing to keep in mind is that there are frugal millionaires (usually the low-millions group, typically those who built a small business into a good-sized business) and then there are the ones that can't hardly spend the money fast enough. That's a different ballgame entirely. (http://biz.yahoo.com/special/luxury083106_article1.html)

There were good insights in this article. But there's some other stuff too, and it's worth knowing the difference

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