To call Dan Nainan frugal is
an understatement. He lives in New York City, home to the world’s largest
public transit system, but insists on walking. Everywhere. Sometimes for miles
on end. When he travels he prefers to couch-surf, and don’t be fooled if you
see him at Starbucks. He’s not ordering any lattes. He just stays for the free
Wi-Fi.
Oh, and did I mention he’s a millionaire?
“There are two ways to become a millionaire. You either make a lot of money or
be a frugal person,” says Nainan. “I’ve kind of combined those.”
In fact the 32-year-old has managed to save a whopping $1.6 million nest egg
despite quitting his day job as a software developer five years ago to pursue
stand-up comedy. He says what began as a hobby now earns him tens of thousands
of dollars per appearance — money that mostly goes to savings.
“In my business, you never know when the phone will stop ringing. There are so
many entertainers who are more successful and famous than I am, but they end up
poor because they throw all that money away,” he says. “It’s very important to
save for my retirement.”
More of Nainan’s frugal habits:
Pay Little to Travel
Even if he gets a generous travel stipend, Nainan keeps his journeys cheap. “I
took a $1 bus to Boston for a show I was paid $10,000 to do. I use
Couchsurfing.com and AirBnB.com to stay for $60 a night or even free. Instead
of taking a car to the airport, I take the AirTrain. A 10-ride ticket is only
$25. ”
Respect Your Roots
“I’m half Indian and half Japanese. Both cultures are extremely, extremely
frugal. Indians are especially known for being unbelievable tightwads. I guess
it’s in my blood.”
Never Buy New
A self-described “gadget freak,” Nainan shops for electronics on eBay, often
scoring items for one-fifth their price, and frequents the library for the
latest best-seller and even language-lesson CDs. “I don’t buy new furniture.
That’s for suckers. There are many people who put stuff on Craigslist, and then
as their moving day approaches, they get desperate and give it away for free.
That’s how I got…a bedroom full of furniture,” he says.
Do as the Millionaire Next Door
His million-dollar lifestyle may seem counterintuitive, but it’s pretty much by
the book as described in Thomas Stanley’s best-seller, The Millionaire
Next Door
. After all, being frugal pays. Nainan spends
no more than $10 on haircuts and $15 on dress shirts. And those run-down
sunglasses? He’s had them for five years and counting.
. After all, being frugal pays. Nainan spends
no more than $10 on haircuts and $15 on dress shirts. And those run-down
sunglasses? He’s had them for five years and counting.
No-Gifts Policy
Another way he saves? Nainan refuses to buy gifts for family and friends. “I’ve
trained my friends and family for years not to expect anything from me and,
more importantly, not to give me anything. There isn’t really anything I need.
I live pretty simply.”
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