sometimes the simplest investment advice is the best. some time ago, i read a book called "the millionaire next door." it's more than ten years old, and you can probably find it in a library now, but some advice is timeless.

the authors interviewed high-income and high-net worth individuals, and found that they were often not the same people. the people in professions who earned very high incomes and lived in upscale neighborhoods and drove luxury cars and wore expensive suits, shoes and watches were not millionaires. conversely, there were millionaires who still lived in their middle class neighborhoods, made less than $100,000/yr, bought used cars, sent their kids to public schools, and so on. no one would ever guess that they were millionaires. in some cases, their own kids didn't know until it was time to liquidate the estate.

these unlikely millionaires shared many characteristics, among them self-discipline and frugality. you could say they were cheap. but they were able to amass fortunes of $1 million or more (back in 1996 that really meant something) by not being part of the consumer culture we take for granted today. basically, they saved instead of spending.

the authors of the book invited self-made individuals who had a net worth of at least $10 million (again this was in 1996) to be interviewed by the authors of the book with the officials of a trust company. when the first multimillionaire showed up, the authors offered him champaign or the fine vintage wine they had on hand. the wealthy man said, "i drink scotch, and two kinds of beer - free and budweiser!"

soon the other multimillionaires showed up, but none of them would touch the caviar and pate that had been set out for them. they wouldn't eat anything but the gourmet crackers that must have been more to their plebian tastes. but that's why they were so wealthy; they had never thrown their money away on luxuries.

but the caviar and pate didn't go to waste. it was eaten by the officials of the trust company and the authors. most of them were gourmets, but it should be noted that none of them were millionaires.

in the years ahead i think we will return to a simpler, more spartan way of life. not because we want to, but because we have to.