Theodore Johnson, a UPS employee, never made more than $14,000 a year

Yet, he amassed a $70,000,000 fortune

Here's how he did it

/THREAD/

Theodore Johnson was raised in a middle-class family

He spent his entire career at UPS

He managed to work his way up to vice president for industrial relations

When he retired in 1952, his salary was $14,000 equivalent to around $120,000 in today's terms

His salary may not be modest but not everyone with his salary managed to accumulate a $70,000,000 fortune

What was his secret?

After taking advice from his mentor, he consistently saved 20% of his income every year

At first, he believed he would not be able to live with less

But after making saving 20% a habit, he got used to it

He lived a frugal life despite all his promotions and salary raises during the years

He also took every chance to buy UPS stock during his career at the company

In fact, he believed so much in the company, that he made it his one and only investment

When he retired in 1952 his fortune was $700,000

At the age of 90, it had compounded to $70,000,000

That's a multi-bagger right there

However, despite his immense wealth, he continued to live frugally

He wanted to create a lasting legacy

Along with his wife, he created a charitable foundation for education and donated half his fortune to it

"I wanted to do something with the money to help education.

Need is the thing. There are so many kids that can't go to college."

He donated $36 million to several trust funds that provide scholarships for children from low-income families

Among them were two schools for the deaf

"I've been hard of hearing since the 1940's when I got a hearing aid.

I wanted to do something to help the deaf."

So what can the incredible story of Theodore Johnson teach us?

1. Pay yourself first

Once you make it a habit, you will get used to living frugally with less

2. Invest consistently

Theodore Johnson, invested from early on, was consistent, as well as a buy-and-hold investor

3. Be patient

Creating a $70,000,000 will not happen overnight

The miracle of compounding needs time and patience to perform its miracle

4. Take care of yourself

Johnson exercised regularly and lived a healthy life

He walked 1 mile every day, even at the age of 92

5. Legacy is more important than money

Despite amassing a huge fortune he did not waste it on luxurious purchases or an extravagant lifestyle

Instead, he created a charitable foundation to give back to the less fortunate

He recognized how lucky he was to have gotten the opportunities he had in his life on education and employment

His own college education was helped by Federal money he received as a World War I veteran

He wanted to help those who could not afford a similar education and give them the same opportunities he was afforded

And that should be the biggest lesson for everyone

Money should not be the goal

It should be a tool to help you fulfill your purpose

/END/

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