Dreams

By Colin Peterson

(warning, this blog is a bit rambling but it does have a point at the end if you get there)

We all have dreams. I have lots of dreams. I dream of being a rock star traveling the country and playing in sold-out arenas. That is a far-fetched dream and I hope you’ll cross your fingers with me that it might someday come true. Meanwhile, here is a dream that is much more achievable – I’d like to someday be a millionaire.

A millionaire!? Yes, that is what I said. People who know me will say since you work for a non-profit and your wife is a public school teacher, becoming a millionaire is a pretty long shot. I don’t think so. There is lots of research that shows people can achieve significant wealth in one generation with modest incomes. It all depends on what choices an individual makes regarding spending and saving decisions (I think a bit of luck helps too since none of us is immune to tragedies and other events that can knock you off even the most solid financial footing).

One source to back this up and give me some hope is a book I’ve been reading entitled, “The Millionaire Next Door.” The authors conducted extensive research to find out what wealth in America looks like. What they found is that often times, people who look like they are millionaires aren’t, and vice versa. They use their findings to paint a picture of the typical American millionaire.

The good news is my family already does a pretty good job making decisions regarding spending and saving that are in line with the typical American millionaire’s spending and saving habits. However, there is certainly room for improvement. According to this book I should stop shopping at the Banana Republic and Brooks Brothers and start buying all my clothes at JC Penney. Although I feel pretty attached to the aforementioned clothiers, I’m willing to make the change and I’ve made a resolution to start shopping at JC Penney.

So what does this all have to do with philanthropy? Well, in the book the authors state that when asked what their favorite charity is, the typical American millionaire will say, “me.” Wow, I was hanging onto the advice in this book like it was the gospel until I read that. That is one characteristic of the typical American millionaire I will never subscribe to. Giving to charity is far too important. As Suku Radia at Bankers Trust says, philanthropy is all about "paying our civic rent.”

I’ve really enjoyed this book and it has a lot of good insights. However, at the end of the day, if the one thing preventing me from someday becoming a millionaire is my commitment to investing in the social fabric of my community, then so be it. My wife and I will continue to exercise fiscal discipline so we may grow our assets while making modest incomes and keep giving back to help those that need it most.