Search Smart Spending:

On $11 an hour, Jersey man made millions

Posted Jan 17 2008, 02:29 PM by Karen Datko
Rating:

Paul Navone is one of those quiet millionaires next door. His friends had no idea he had money until he started giving it away -- $1 million to a college and another $1 million to a prep school. The 78-year-old retiree never made more than $11 an hour while working in the New Jersey mills, according to a story by Joe Logan in the Philadelphia Inquirer, and to this day Navone buys his clothing at thrift stores, and doesn't have a TV or a phone.

Navone, the son of Italian immigrants, quit school and went to work at age 16. He lived at home and saved. After two years in the Army, he bought the first of several rental properties. He lived off that income, saved his wages and turned to investing, the Inquirer story says. "Paul has always been the perfect client. He gave me money and never took it out," said broker R. Douglas Smithson, senior vice president for investments at Wachovia Securities in Vineland. "He took my advice, he stuck to a plan, and he reaped the benefits of it."

Navone, who lives in a small house in Millville, said, "My motto back then without realizing it -- and it is now -- is that I'll work for the money, and then I want the money to work for me."

Back to Smart Spending Digg this | Email this | Link to this
Comments

 

Heh. Good story. Reminds me of my best friend's wife. He used to complain to me about how cheap she was (raised by immigrant Italian family). She'd never turn the heat or AC on, would sneak homemade popcorn into the movies, and would never pay for a refill, no matter how thirsty she was. He's not complaining now. Because of her rubbing off on him he's gone from $22,000 in credit card debt to zero CC debt, over 100K in his TSP retirement account, and 8k in savings.

ChintzyGuy (Posted 01.18.08 9:30 PM ) Report Abuse

money managment should be taught in school.  I studied economics and the the great depression alot in high school.  From this period of time I learned things that are easily gotten are usually hard to pay off.  Saying no to mortgage loans, driving older cars instead of the nice shiny cars everyone else pulled into work in, furnishing my home with great finds from thrift stores and garage sales I was able to save enough to buy my home with cash, enabling me to now stay at home and care for my four children without the stress of possible forclosures or repossesions.  Just remember if alot of people are living off credit it's only a bad situation for everyone usually a recession

cnymom (Posted 01.18.08 9:43 PM ) Report Abuse

Great story...but how many live to 78...what if you live uncomfortably for your

entire work life just to have a stroke and let the nursing home eat away your savings..take the trip, buy the TV (if you can afford it)..these advisors who sit in

cubes all day don't understand the vulnerability of life...try visiting a hospital and

get a reality check and get a life

Matt (Posted 01.18.08 9:44 PM ) Report Abuse

This man had the right idea.  It took too long though.  The goal is to gain enough cash flow to not have to work, then spend your time doing service and help for others.  Not everyone gets the same kind of lucky break in life, but if those of us who got lucky financial breaks would in turn offer our hands of service, we would find that our lucky break could go a whole lot further.  He did what he wanted, but in my eyes could have helped others much earlier and in turn received love and appreciation to make his life fulfilling!

Surveyer (Posted 01.18.08 10:03 PM ) Report Abuse

if he had kids, this would be a much different story.

travis (Posted 01.18.08 10:13 PM ) Report Abuse

consumerism prevents us all from achieving this greatness.  I dare everyone to stop buying THINGS and now gravitate towards yourself or other people.  WE don't need the stuff-the advertisers have all WON-you are powerless over them every time you buy.  PRACTICE MINDFUL COnsumption

sue cullen (Posted 01.18.08 10:22 PM ) Report Abuse

Didn't hear anything in there about having a wife and kids. If I didn't have a wife and kids and all the scratching and scraping that goes with it, I'm sure that without that burden, I'd have had at least 100 fold what I've been able to save over my lifetime.

justwonderingtwo (Posted 01.18.08 10:25 PM ) Report Abuse

If you want to live in the downstairs of your duplex. Wear old clothes, work 50 hours a week and have no life. Go for it. Don't get old and sick, then wish you could enjoy the fruits of your labor, too late. You have to appreciate his work ethic and financial planning. I believe in saving 401K, company stock etc. But, I am not going to be old and wished I enjoyed what I worked for.

Rodzila (Posted 01.18.08 10:35 PM ) Report Abuse

If we don't get caught up in all the material aspect of life and pay ourselves first then it is possible to become wealty. I got luck in stocks and don't have to work. I'm 35 and watch my spending. If I can do it anyone can.

David Kirby (Posted 01.18.08 10:36 PM ) Report Abuse

Rental properties? I have to agree with Jim; where did an x GI come up with the money to buy rental properties? Something is truly missing in this tale. Investment props typically require a 20% down payment, painting, many minor repairs and a couple months of payments to the mortgage company before the rent starts covering the costs. 11$/hr today  was like 50c/hr when he was a young man getting out of the military. For example: My father made 17$/week back in the fifties as enlisted sailor. That was hardly enough to pay for food and a very low rent two bedroom bungalow, way out in the distant burbs of NY City.  So, again, where did this guy get his seed money, not from pushing a broom at 1-11$/hr.?  

jb (Posted 01.18.08 10:44 PM ) Report Abuse

First < 8 9 10 11 12 13 14 15 16 17 > Last

Send a Comment

Comments must be directly related to the blog entry. Comments with offensive language will be deleted. Your e-mail address won't be displayed.

(please, no HTML tags. Web addresses will be hyperlinked):