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Millionaire Lesson No. 7
It doesn’t take a fortune to build one. Saving a little at a time is an established path to accumulating wealth.
You don’t need to earn much to make millions. Paul Navone, 78, never made more than $11 an hour as a quality-control inspector in a glass-container factory. But last year he gave $2 million to two New Jersey schools. He has about $1 million more saved for his retirement.
Navone, who lives in Millville, N.J., was hired by Wheaton Glass when he was 16. After taking a break for Army service, he returned and moved in with his older sister (paying her for his room and board) until he scraped together $6,500 to buy his own duplex at age 23. He lived in one half and rented the other. Eventually, he bought two other properties in Millville and two in Atlantic City.
Income from his rentals paid Navone’s living expenses. "I never spent any of my wages," he says. He owns no phone or TV. He collects Hummel figurines -- dozens of the ceramic pieces decorate his home. But for the most part, he squirreled his money away in savings and investments, and he gives credit to "four very good brokers." Navone invested in "a little bit of everything" and stuck with a buy-and-hold strategy. He is partial to utility stocks, with their steady earnings and dividends (which he always reinvests).
When he retired two years ago, Navone couldn’t help wondering "what all this accumulation was going to amount to." He decided to give part of his fortune to St. Augustine College Preparatory School, in Richland. His current broker, Douglas Smithson, of Wachovia Securities, suggested that he also speak to Cumberland County College, in Vineland.
Last year, Navone donated $1 million to the college for its nursing-education program and $1 million to the high school for a swimming pool. "I never had the pleasure of a swimming pool," he says. "I used to go to the swimming hole at the gravel pit."
EIGHT MILLIONAIRE PROFILES
1. The Video That Took on a Life of Its Own
3. Pounce When the Time Is Right
5. A Thirty-Year Plan to Make a Mil
6. Breaking With Family Tradition
7. Accumulating A Fortune on $11 a Hour
POSTED BY: charles (August 18, 2008 12:59 PM)
He could have made that $3 million and had all his living expenses (including a TV and phone) by the time he was 35, if he kept buying properties like he started out doing.
"wealth is wasted on the wealthy."
POSTED BY: Frank (September 20, 2008 11:09 AM)
Others would be wise to emulate Mr. Navone. What he did requires tremendous discipline, insight and sacrifice. He is living proof that it is not "how much" one makes, but "how one manages their funds". The majority of people working a 9 to 5 won't even earn $1,000,00 (an average of $25,000 per year for 40 years). Congratulations and a "right on" to Mr. Navone!
POSTED BY: MK (January 01, 2009 07:47 PM)
People should learn from him. I bet his life was not stressful like a typical married family that make 60 to 80k combined and have kids... I prefer single no wife, no kids. A girlfriend and a huge retirement plan is sufficient.
POSTED BY: doug (February 05, 2009 02:48 PM)
the key to this kind of wealth strategy is to be self-centered. if you never marry and never have kids, you never have to share that wealth with anyone. but then "those people" will tell you that your life is less rich than someone who has a huge family but considerably more stress and definitely less wealth.
POSTED BY: Tim (February 13, 2009 02:29 PM)
that's good for him and he made good choices. Not everyone has the opportunity to move in with someone and live rent-cheap. Not everyone will get along without a t.v. and a telephone esp. in this day and age. DOUG? who are "those people"? I'd really like to know. Other than your non-inclusive language, not everyone that doesn't get married or have kids are self-centered. I'm sure someone that donates $2 million is nothing but self-centered....
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