Engineers, professors and people with Scottish ancestry, taken separately, are among those who are significantly above average in transforming income into wealth. I have focused on these three groups in previous blogs. I wonder if someone who fit in all three of these categories would be especially good at accumulating wealth? The details of the following case certainly support this hypothesis.
Dr. Scott became wealthy on a professor’s salary before he was 50. He and his family are very frugal. As an example, what wattage light bulb does Dr. Scott use in his home? One-half are 60 watt; one-half are 40 watt. What is his thermostat turned to during the winter? 62 degrees! “What do you think sweaters and comforters are for?” He buys his suits at Sears on sale. How does Dr. Scott go about buying fresh meats for his family? “I dress down, like when I mow my lawn (used mower purchased at an estate sale) and then visit the local farmer’s market butcher shop on Saturday afternoon just before they close. I ask, ‘what do you have that won’t keep until Monday?”
What did Dr. Scott do with the money he saved on electricity and food and just about everything else? He set aside the maximum amount allowed under the law in his 403 B plan. Plus his regular pension plan was fully funded by the state. In addition each month he set aside at least 15% of his after tax income. Plus he had college funds for both of his children who attended fine Eastern private schools. Dr. Scott is a pound wise, penny frugal professor, engineer, and Scottish American.