A Million Bucks Ain't What it Used to Be

The group of stories sitting atop the main page at Yahoo! earlier today probably strikes the many readers of Yahoo! in many different ways.

For those comfortable with their lot in life, they were probably not much more than a curiosity, if that. For the responsible, upwardly mobile set it may come as a surprise that a seven figure net worth isn't that big a deal, especially if you live in a major metropolitan area.

For those who recently took advantage of any and all wacky loan products they could find in order to get into that million dollar home they so desired, only to see its value now slowly slipping away, well, let's just say that neither the validation or the equity gains that were once sought are likely to be forthcoming.

• A Million Isn't What It Used to Be
• 10 Reasons You Aren't Rich
• Nickel-and-Diming Your Way to Riches
• Why Middle Age May Be Healthy for Your Wallet

To further trivialize the situation and make it all the more maddening for some, combining our celebrity worshipping culture with the shrinking value of the dollar (with some machismo thrown in to boot) look what's there now.


This may make for some good conversation during the evening commute as carpooling consumers wend their way back to their gigantic homes in the suburbs to have another look at the pile of bills that need to be paid in just a few days.

"Honey, I saw this article today on Yahoo! and it said there are like three million millionaires in the country ... but that's not counting their homes! What's our net worth not counting our home? Why don't they count real estate in the total? That sounds unfair."

Here are a few highlights:

From A Million Isn't What It Used to Be:

Not that long ago, the word "millionaire" conjured up visions of chauffeured limousines and extravagant shopping trips and elegant yachts. These days, a millionaire is more likely to be the guy or gal next door who saved carefully -- and perhaps benefited from the sharp run-up in housing prices -- but still worries about covering the exploding costs of children's educations, caring for aging parents and funding their own retirements.

From 10 Reasons You Aren't Rich (this is actually an excellent little article):

The reason why you aren't a millionaire (or on your way to becoming one) is really quite simple. You probably assume it's because you aren't earning enough money, but the truth is that for most people, whether or not you become a millionaire has very little to do with the amount of money you make. It's the way that you treat money in your daily life.

Here are 10 possible reasons you aren't a millionaire:

1. You Care What Your Neighbors Think
2. You Aren't Patient
3. You Have Bad Habits
4. You Have No Goals
5. You Haven't Prepared
6. You Try to Make a Quick Buck
7. You Rely on Others to Take Care of Your Money
8. You Invest in Things You Don't Understand
9. You're Financially Afraid
10. You Ignore Your Finances

From Nickel-and-Diming Your Way to Riches:

Consider Dan Goldzband, a cost accountant in San Diego. He has his paycheck deposited directly into a high-yield savings account, where the money sits until he transfers it to his checking account to pay bills. His reward: $35 to $85 in interest each month.

"My checking-account balance rarely exceeds $100," Mr. Goldzband says. "If it does for more than a couple of days, I am doing something wrong. Of course, only a compulsive like me could make this work. But the general idea, less rigorously applied, would still work for many people."

From Why Middle Age May Be Healthy for Your Wallet:

They found that middle-aged adults tend to borrow at lower interest rates and pay fewer fees than younger and older adults. The age at which consumers are least likely to make financial mistakes: a few months past their 53rd birthday, despite all the pressures that accompany middle age.

The economists call it "the age of reason." (Full disclosure: I turned 53 a month ago.)

Why do they always interview accountants and economists about money?