MANY OF THE WEALTHY people I’ve studied were extremely frugal—to the point of eccentricity. Why is it that when rich folks are tightfisted, people call them eccentric, but—if you aren’t rich—people tag you as cheap?
New Jersey Bell Telephone Co., now called Verizon, used to have small inserts with its bills that highlighted persons of note who had a connection to the state, whether they were natives or had resided there at some point, such as Thomas Edison. One of the inserts told of Henrietta “Hetty” Green, better known as “The Witch of Wall Street.”
Green was a familiar figure on Wall Street, with her all-black garb, including dress, cape, bonnet and well-worn black satchel, which was how she earned that epithet. She was America’s first female tycoon, although today not many people have heard of her. Green was a successful financial speculator, quite unusual for a woman at the turn of the 20th century. She stood alone against the titans of industry.
A woman with a brilliant mind, her fortune was made by shrewd investments in real estate, railroads and government bonds. She was the richest woman in America during the Gilded Age, but frugal to the extreme. They say she wore the same black dress until it turned green.
Green lived a life of mean miserliness, to the extent of causing permanent injury to her son because of her reluctance to spend money on his health care. She was so obsessed with money that, it is said, she spent an entire night looking for a two-cent stamp she’d misplaced.
If there’s a term for those who are beyond miserly, it might be miserly madness. Nevertheless, the story of how Green amassed great wealth is fascinating. She turned an inheritance into a fortune.
Another woman who achieved great wealth through investing was Anne Scheiber, an auditor for the IRS. She retired in 1944 at age 51. After poring over numerous income tax returns, she’d decided that the way to wealth in America was achieved by owning stocks, so she started investing.
She, too, was an inveterate miser, often going to shareholder meetings with a capacious bag. She would fill it with enough food, available at the meeting, to last her for days. Her broker said that at the time you could get a hot dog lunch for 15 cents at Nedick’s, a chain of fast-food restaurants. But thanks to shareholder meetings, Scheiber had found a cheaper place.
She accumulated a $5,000 nest egg and then turned it into a $22 million fortune, even though she never made more than $4,000 a year and, in retirement, received a yearly pension of $3,150. She lived a reclusive life in a rent-controlled apartment in Manhattan and would walk miles just to save on bus fares.
Like Green, Scheiber never bought new clothing or furniture. Everything she owned was in various stages of disrepair or decrepitude.
My purpose in touching on the lives of these two women is to point out that they never enjoyed spending their wealth. Scheiber’s only pleasure was trips to the vault at Merrill Lynch near Wall Street to visit her stock certificates. Green’s enjoyment was besting other investors with her business acumen—and the rapacious accumulation of money.
Many people get ahead in life by living beneath their means. But by the time they achieve financial stability, the frugal habits of a lifetime are hard to temper. On top of that, the point of reference we have for the price of everything is usually rooted in our younger years, making current prices seem excessive. We recoil from what we perceive to be a shocking increase, forgetting how quickly time passes.
There is a fine line between being frugal and being miserly. Scheiber and Green were certainly extreme. When we reach a certain point where “enough is enough,” loosening the purse strings just makes sense.
We all have to find that balance in our own way, and lead our lives the way we see fit. While we may not wish to spend money on ourselves—buying things we don’t really need or indulging in luxury vacations or flashy cars—generosity to those less fortunate can be a meaningful way to give purpose to our lives. Some call it giving back.
I’ve heard of people being buried in their cars. I’m sure we’ve all read similar bizarre stories. But as far as worldly possessions go, there’s no U-Haul to heaven.
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Here are stories of Hetty that I have never read. Can’t vouch for them and don’t want to take time to, but some of you may: https://www.quora.com/Just-how-miserly-was-the-infamous-Hetty-Green
thank you for your post Will. I think there may have been more to Hetty than we know. However, she had an acerbic nature and was often rude in her remarks to others. She could stand up to all her peers, who were mostly all men and, in her own words she “could give as good as she got” meaning she took no guff from anyone .Charm was not her strong suit and so the media was not kind to her.
There is no doubt she was an inveterate miser, to the point of not even caring about her appearance. which many found off putting and was not above swearing like a sailor.
We can’t look into the human mind, but I think her obsession with money caused her to be unbalanced.
Wow, I get it. We are both retired and have the opportunity to buy a mostly ranch that is so beautiful it makes my eyes tear. We can afford to buy it but the maintenance is costly and complex. Our current small split is ez and very inexpensive. My husband does all yard work, I do inside. No water softener, 1 heater, 1 a/c, no sprinklers, hot tub, we shovel driveway etc. Its giving me hives. Think monthly will be 3 times now. Do we splurge and live large for our last 10 to 20 years or enable our heirs to do that? Life is all about choices
Thank you for your post. You sound as though you are doing well right now and I certainly hope you and your husband continue to do so.
My husband and I lived similarly but there came a time when we had outsource yard work and many other everyday chores.
some expenses go away in retirement but others come along that increase our outgo. Health care costs are currently rising about 6% each year and We all need additional services as we age. You will not always be capable of shoveling snow.
You and your husband should spend your money in whatever way it will increase your happiness and well being. Your main concern should be for yourselves, not your heirs.
There is a definite difference between frugality and meanness. Being frugal, often born of necessity, is simply making every penny go as far as possible and not getting sucked into soulless consumerism; meanness is not just about money it’s a state of mind and imo, to be nipped in the bud.
Rita…A wise observation, Meanness is a scourge on human nature. So much easier to be kind…think good things, do good things and let others do the same for you.
your comments are appreciated
I think these 2 women had an illness. I grew up poor and lived in a housing project on welfare. Now I have enough money so each of my 4 kids will be millionaires. I have the habit of being frugal, but not cheap. I won’t pay $5 for light cream or a gallon of milk at an expensive supermarket when they can be had for less than $3 at Costco or BJ’s. I also buy Lexus SUV’s and keep them a long time. But I do spend money on family vacations and 20% down payments for each of my kids’ homes. I just don’t like overpaying on things, or wasting things. This is probably a remnant from my past.
Yes our upbringing influences us so much and I really appreciate my frugal thrifty upbringing. My mothers voice still echoes in my head about ‘bargains’, a bargain is not a bargain unless you need it.
Many of us would do well to remember your mother’s admonition. Thanks, Rita.
You have cut to the crux of the matter..”waste not, want not” and avoid overpaying..be generous with loved ones, including yourself.
well done!
Yes Mam. I in my younger days had a pact with my self not to start the car, unless I was using it for some type of gain. I could use it for going to work or to make a deposit. Never to a store.
I did that for a few years and learned it’s not a good way to live. However, I’ve always been careful with ‘life’s Fuel’ and now, I don’t need to.
I find it nice to directly pay for the services folks need. Simply give them relief and in that some joy.
NOW there is a purpose to the accumulated wealth!
And having found that purpose you will find contentment and joy. Kudos to you.
“Hetty” was certainly the tarot’s Queen of Pentacles and if one would do research on Mrs. Green they would fiind that she had a tarot card deck.
Thank you for reading and for your intriguing comments.
Hi Marjorie, I appreciate you sharing these interesting stories about the extremely odd behaviors of Green and Scheiber. There comes a point when most people realize that money is not everything and it doesn’t (or shouldn’t) define us.
I enjoyed your first article about how you set your goals and made your own way by working hard. I’m looking forward to reading your future articles.
How good of you to remember me. Thank you for your sage comments.
Not spending money for long enough can eventually make one realize that spending money doesn’t create happiness, and in fact often leads to disappointment. Your article implies that frugality is some sort of punishment that you’re waiting to complete or outgrow, but not everyone shares your disposition. As a middle aged person, I typically don’t spend money on things unless they are physically broken. If I’ve gone this long without product “x” then surely I can do just fine without it.
I purchase quality where possible and get plenty of enjoyment by witnessing the durability of my purchases. For example, owning an 11 year old vehicle shows how well I selected my initial purchase, and how well I’ve maintained it. You seem to see things that are worn as a sign of distress, but I see it as a sign of accomplishment. Some people may want to live in a throw away society so that everything can look new, but I see that as both emotionally unsatisfying and ultimately unsustainable for the planet.
You sound like a wise consumer. Conservation is a very good thing. You may have misunderstood the point I tried to convey.
And I can do you one better on the car…mine is 15 years old and I love it.
We all have our quirks, don’t we? I have a son-in-law that drives all over town with a fistful of coupons and his Gas Buddy app running just to save a couple of bucks, but I suspect it is a hobby of sorts. I also suspect he has more money than his father-in-law. I’m all for saving some money with a good coupon and not wasting money on the unnecessary, but not obsessed.
You seemed to have found the right balance. Thank you for your comments.
I see myself in them. Grew up without much. Guess it is hard to change those habits formed young. Trying hard to loosen my purse strings. Thanks for the article.
I share your dilemma. Good news is the more you try, the easier it becomes. Thanks for reading and commenting.
You’ve painted a fascinating portrait of those two ladies. I truly enjoyed the stories, and your comments regarding their lives in retirement as well as when they were amassing their fortunes. I appreciate you providing a hot link to another site where I could see a photograph of the Witch of Wall Street. I even recognized some of my husband’s habits formed while working, which have continued during retirement when they were no longer necessary for income purposes (such as searching for generics instead of name brands). I
anxiously await your next stories.
Thank you for reading and for your kind comments. Nothing wrong with generics.
wish my husband were as cost conscious.
Interesting article! I find myself with similar habits when it comes to my lifestyle and spending.
Congratulations to you and your wife. How exciting..a new house. Wonderful.🤗
Thanks for reading Olin. I think we all fall somewhere in the spectrum. As long as we’re not too extreme in either direction,we’ll be just fine. Spend a little for some niceties. You deserve it.
I shared your article with my wife because we do live a frugal life. I still drive a 30 year old vehicle; hers is much newer – four years old. We’ve decided to enjoy some of our wealth and recently contracted to have a new home built. A newer vehicle for me will have to wait. Thanks again for the article! The links within have kept me busy reading further and further and adding bookmarks.
See reply above. Thanks Olin.
We all spend money in different ways too. I have a neighbor who keeps her heat on such a low temperature, my teeth chatter when I go there. She also times showers, so as not to have higher utility bills. However, she eats out 3 or 4 times a week. To each his own. I’ll take comfort.
Both these women gave a lot of money to the less fortunate during or after their lives. Why are these generous women called “miserly”? They were anything but. They loosened their purse strings – for others. They were satisfied with what they spent on themselves.
I was going to disagree with you because they were both something. I thought to google the definition of the word miserly and you are absolutely correct.
Neither was this,,,
94 Synonyms & Antonyms of MISERLY – Merriam
Some common synonyms of miserly are close, niggardly, parsimonious, penurious, and stingy. While all these words mean “being unwilling or showing unwillingness to share with others,” miserly suggests a sordid avariciousness and a morbid pleasure in hoarding.
I grew up near Round Hill, the home of Hetty Green’s son ( Hetty was born in nearby New Bedford). There was more to Hetty than many realize. She quietly gave significant sums to charity and was also known to be quietly supporting dozens of poor families. Some stories are exaggerated. She did spend considerable time and money on her son’s medical care. She attributed her simple living (perhaps carried to extremes) to her Quaker upbringing .
While the media did portray Hetty in a negative light it is possible her life was more complex and I’m glad to hear of her redemptive qualities.
Taking all into consideration, as the song title goes, “It Isn’t Easy Being Green”.
Anne Scheiber too, in the end, did much good with her fortune, leaving it all to Yeshiva University, for the advancement of young women’s education.
it is ironic, however, that both women couldn’t be more generous to themselves.
Very interesting stories. I wonder if those misers were happy in their own way.
I read a lot about retirees or near retirees who claim to be happy being frugal, even plan on living that way. I’ve said that myself, but I’m not sure how it is defined.
Do you really think there is a fine line between frugal and miserly?
although their lives must seem dreadful to most of us, they must have gotten some enjoyment from it, twisted as it may seem. Scheiber lived to be 101. I don’t think they were happy as we know happiness; more like an obsession they needed to satisfy..