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On $11 an hour, Jersey man made millions

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

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Comments

 

THAT;S THE AMERICAN DREAM.EVERYONE SHOULD FOLLOW IN HIS FOOTSTEPS

THE KING (Posted 01.18.08 9:53 AM ) Report Abuse

This is a good but questionable story. The biggest problem is the fact that our education system does not teach students anything about personal finance. My K-12 personal finance education consisted of how to write a check and nothing more. I have found a couple of blog sites that actually give some real tips on how to save money on the things you actually do. Try talkaboutdebt.com and if you are in college like me go to collegespending.com.

Joe (Posted 01.18.08 9:57 AM ) Report Abuse

I think the lesson is clear.  SAVE and INVEST wisely.  Live life frugally in the beginning and you will be rewarded later on.  That is when you can spend on yourself, family, friends and then others.

Marc Miura (Posted 01.18.08 9:59 AM ) Report Abuse

Does he also have a '54 Dodge in his driveway?

cara mia (Posted 01.18.08 10:02 AM ) Report Abuse

When I die a lot of people will miss me because all the money I owe specially those C C

allbee (Posted 01.18.08 10:04 AM ) Report Abuse

Financial security means a good night sleep. So what he had to give it away when he died.   Having all the toys and being indebt up to your eyeballs does not aford you a good night sleep.  This guy had the right idea.  Too many people are one pay check from financial ruin.

Don Laban (Posted 01.18.08 10:06 AM ) Report Abuse

With the way Americans spend their money, especially women with their continuous shopping at the malls for junk items such as clothes, shoes, fancy handbags, bleaching their hair blonde, this is not possible. These women are teaching their sons and daughters the same materialistic habits.

I knew a janitor at my workplace who has been donating a lot of money to local causes. He earned $6.50 and has two grown-up children but was still able to save over $1 million.

Americans have a lot to learn from other cultures in the Middle East and Asia where education and money are tools used wisely. Going to college in America is a "cool thing so that I can hang out with my friends" whereas in the Middle East, it is about procuring knowledge.

Jack (Posted 01.18.08 10:11 AM ) Report Abuse

Of course the old rules still work.  

Math is still math.  

You invest in a retirment plan-401k,ira,keogh-there is no tax till you withdraw

At 9% the money doubles every 8years after the first million eight years later it is two million with no additional deposits.

The problem is when you are young you likely have little money as you get older and have, hopfully more money you have less time.

Dave (Posted 01.18.08 10:13 AM ) Report Abuse

I agree with the posters who recognize that this man never figured out how to balance life and finances. As a college student, I lived off peanutbutter and jelly sandwiches, spaghetti, ramen noodles, mac n cheese, spam, eggs, rice, and beans. I didn't have much money so I didn't spend much money. Looking back, I was comfortable and content. After getting a real job, those habbits changed. I now go to the butcher shop for meat and produce stand for veggies/fruit. I know I can eat a LOT cheaper per month, but what would be the point? I started investing at 18, my retirement accounts are nearly fully funded, I have EF, and my home/car are paid for. I am planning to leave upwards of 2 mil to my disabled son when I die. Of course, life is never certian and we can never be sure, but I say that life has to be balanced. Get some enjoyment of life now and then enjoy life later too. I don't think I would be happy working my entire life to leave 1 mil to a prep school for pete's sake!

tj (Posted 01.18.08 10:18 AM ) Report Abuse

there are two lessons to be learned here.

1.) we can all live on a lot less that we think.

2.) you can carry anything to extremes

learn from both and you shall prosper

william (Posted 01.18.08 10:18 AM ) Report Abuse

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