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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: Ruth (June 21, 2008 11:59 AM)
One obvious difference between Mr. Navone and others is it doesn't appear that he ever married or raised a child. That would take care of a lot of his money right there. I am impressed that he chose a nursing education donation. We all need to get behind nursing. We are really going to be hurting for nurses very soon.
POSTED BY: Mozelle (June 24, 2008 10:11 AM)
...To work for $11.00 bucks an hour makes no sense, after accumulating his first million!...Nobody on this earth would be that stupid!
POSTED BY: Nena (July 14, 2008 10:48 AM)
wow Mozelle...Mr. Navone is not only incredibly wealthy, he's blessed beyond measure...you would do well to learn from him.
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!
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