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Lessons from Secret Millionaires

Eugenia Dodson grew up on a Minnesota farm, the daughter of poor Swedish immigrants. Her childhood poverty affected her so profoundly that even in her old age, she refused to replace a stove with only one working burner — even though by then she was worth tens of millions of dollars. Dodson, who left nearly $36 million to the University of Miami when she died in 2005 at age 100, is just one of many secretly wealthy people who live quiet, frugal lives and then leave unexpected fortunes to charity.

Some are men, though the women interest me more, as females usually earn less, invest more conservatively and wind up poorer in retirement. These women break that mold. Here’s what we can learn from them.

You Don’t Have to Be Born Wealthy to Get Rich

Secret millionaires can be farmers, school teachers or, in Dodson’s case, a hairdresser.

Investing for the Long Run Pays Off

Secret millionaires are often heavily invested in shares — the one type of investment that consistently beats inflation over time.

Start Early -- and Keep Going

Long lives mean that even small amounts invested over time have the decades they need to grow into real wealth. (As an example, $10,000 can grow to $100,000 in 30 years with an 8 percent average annual return, which is a typical long-term gain for stocks.

Don’t Forget to Enjoy Your Money, Too

Living below your means is essential to growing wealth, but it is possible to go overboard. Helen Dyrdal of Renton, Washington lived with broken furniture and wore tattered clothes, leaving her best friend with the impression she was impoverished,

If Dodson, Dyrdal and other secret millionaires had been able to address their fears about money, they may have died a bit less wealthy — but they might have been happier. The best part of money is enjoying it while you’re alive, even if you want to benefit others when you die.

Source: Daily Worth