Who wants to be a millionaire
Posted by Faith, 28 May 2009
We all want to be millionaires. Most of us are - if we only realised it.
A couple of weeks ago I noticed a new woman clearing tables at my favourite café. While her arm movements were brisk, she dragged her feet painfully. Her ankles were so swollen that they flowed over the tops of her worn sneakers.
She looked like she was in her fifties. I wondered what had happened that she still had to work so hard in what is usually student work or a young person’s job. I read her name badge – Sandra.
I thanked her as she collected my cup. Sandra looked up with a quick smile and asked, “Do you work nearby? I see you here every few days.”
I nodded, “Yes, this is a nice place to have a break.”
“What do you do?”
“I’m a financial tactician.”
She looked blank and I explained that I help people find out what makes their lives worth living and how to organise their money to get there.
She snorted. “That’s alright if you have money.”
“Well, nearly everyone is a millionaire at some point in their lives. They just don’t know it.”
She laughed at that. “I think I’d know if I had a million bucks!”
I replied, “I really am serious and I might be able to help you. If you’d like to talk then here’s my card. Your first appointment is free.”
She laughed again, but she took my card.
Over the next few weeks I popped into the café for my regular Friday treat – the most heavenly coffee.”
Each time I’d say hello to Sandra. She was a favourite with customers as she was so cheerful and always remembered their names. We’d have a brief chat about the weather and she’d ask what I was doing in the weekend. I often asked what she had planned, but she always replied with the same answer. “After I’ve done the housework, I’m too tired to do anything.”
One Friday it was quieter than usual in the café. Sandra swung by my table as I finished my coffee fix. She looked a little hesitant and I gave her my most welcoming smile.
She took a deep breath and said, “You know how you said that most people have a million bucks but don’t know it. Well, I’ve been thinking about that a lot but I still don’t get what you mean. I’ve checked your website and you seem legit. How can I be a millionaire?”
“If you’ve got time to talk now I’d be happy to explain. Otherwise I can come back later or you can come to my office.”
“I’d prefer to talk here, if that’s OK? I’m on my break so I’ve only got 15 minutes.”
“That’s fine. Can I ask you a few questions?”
Sandra nodded.
“When did you start work and what doing?”
“At 16. As a waitress.”
“Have you worked continually since then?”
“I took some time off when I had each of my two children. Mum said she’d help look after the kids if I got off the benefit.”
“Have you always worked as a waitress?”
“I was never any good at school and this is the only thing I could do. But, I like getting out of the house and talking to people.”
“If you started as a waitress today at aged 16, what would be the wage?”
“The minimum rate.”
“OK. Let’s work this out. The minimum hourly rate is $12.50 per hour, which is $500 per week and $26,000 per year. From 16 to the current retirement age of 65 is 49 years, less 2 years for child raising. That equals 47 years. 47 x $26,000 = $1,222,000 earned in your lifetime. There’s your million dollars!”
Sandra looked cross. “But, that’s cheating!”
“What do you mean?”
“It’s spread out over a whole lifetime.”
“It’s still a million. How much of it will you keep for yourself?”
Sandra shouted angrily. “What would you know about living on the minimum wage or bringing up a family on your own? I need every dollar I earn just to get by. That suit you’re wearing probably cost a month’s wages for me!”
“I can help you. You’re still earning and so there’s still time to keep some of that money for you.”
With a final “get real” flung at me, she flounced off. I went unhappily back to my office.
I was annoyed with myself for upsetting her. I guess I had come across as pretty arrogant and I was ashamed at that. I had not meant to raise her expectations that she could get a million dollars now. I was trying to point out that most of us earn that and more in our lifetimes, but keep little of it for ourselves.
She telephoned me in my office on Monday morning.
“Faith, I am so sorry for losing my temper with you. I want to apologise.”
“That’s quite OK and I probably deserved it.”
“I was wondering if that free appointment was still available?”
“Yes, but I’m surprised you still want to talk to me.”
“You got me thinking again over the weekend. You’re right about my wages going to everyone else - the landlord, supermarket, tax, petrol and on and on. I’m sick of it. I’ve got several years before I qualify for an old age pension, so I have to keep going. You said that there’s still time to keep some of my wages for me. Is that really possible?
I took a deep breath. “I can’t guarantee anything, Sandra. However, I find that most people can save each week once they know how. Why don’t you come and see me and I can tell you what is possible then?”
Sandra had worked hard all of her life to pay her way and bring up her children. Her husband had left her when their children were babies and she became the sole income earner. Because she had low wages and lots of bills, it had never occurred to her that she might be able to save. Accordingly, she had unintentionally let money slip through her fingers every payday.
If she had managed to save $10 per week over her entire working life, she could have amassed approximately $50,000 in 47 years (using a return of 2.5% pa after taxation and inflation). While this is not a million dollars, it a sizeable amount that would have given Sandra some alternative choices to working full-time at this stage of her life.
While she couldn’t recover lost years, there was still time to plan for an easier future. She was worn out and so we concentrated on how she could work fewer hours, while putting aside some of her pay to enjoy life more and to save towards having a few little extras when she needed them.
Sandra also did the following:
- Got her adult children to pay a realistic board while living at home and to do their share of the housework.
- Joined the local free library and, unlike when she was at school, she found books she liked reading.
- Signed up to night school at the local college. She learned foot massage in the first semester (7 classes for $30), is now learning patchwork and quilting in the second semester (7 classes for $40) and plans to do more next year.
- Took up tai chi to get more energy and flexibility.
Sandra still works at the café but for only 30 hours per week. She persuaded her boss to train her as a coffee barista and she now earns well above the minimum hourly rate.
I still visit the café for my weekly coffee treat.
Learning with Faith:
- It’s never too late to start saving.
- It’s never too late to learn new skills for work.
- It’s never too late to start a new hobby or to get fit.
- Little things add up – saving a small amount each payday can add up to a large sum over a working lifetime.
Useful websites:
Find out how a small amount saved per week can add up to a nice, big pile:
http://www.sorted.org.nz/
Aorere College Adult and Community Education (night school)
http://www.aorere.ac.nz/images/ced%20programme%20term2-09.pdf
Sing Ong Tai Chi
http://www.singongtaichi.com/
---ends---
Want more out of your life and money? Then buy my book Keeping the Faith - Travel the World. Beware - it is very powerful! It was awarded a top 5-star rating by the on-line financial bookstore Good Returns, along with the warning: "This book changes lives." Click here to buy Keeping the Faith - Travel the World.
Always set goals and work towards them, but never make New Year resolutions. Want to know why? Read more...
Want to know more about how to make better choices about money? Check out Faith’s Fact Sheet.
See previous blogs:
Don't sweat the small stuff.
Can you grow a money tree?
What's holding you back?
Money or your life - which has more value?
The seven secret thieves
Five questions to change your life
Find that spark
Switching lives - what would you choose?
Who can I trust to help grow my money?
How to swim in a sea of money
Life can be unfair
The rule of happiness
No way to live
Anyone can be good with money
Best ways to warm up winter
Who wants to be a millionaire?
The secret of wealth
Keeping your money safe
Having it all
Win an all-expenses-paid trip for two to Europe (Part 3)
Win an all-expenses-paid trip for two to Europe (Part 2)
Win an all-expenses-paid trip for two to Europe (Part 1)
Make a change for good
A recipe for a happy Christmas
Nothing else matters
Rage, rage against the dying of the light
Make a wish come true
Buying or Selling a House – Those that care least, usually succeed
When is a good time to buy a house?
Sleepless Nights in a War Zone
Transitions - more life or more of the “same old, same old” boring stuff?