Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Old 07-26-2016, 01:53 PM   #41
Recycles dryer sheets
 
Join Date: Jul 2015
Posts: 78
Quote:
Originally Posted by ABQ2015 View Post
Well, good luck on this thread. We had a similar one on another forum and it just ended up being a big bashing of people who spent too much money on frivolous things because they must be up to their neck in debt, all the truly wealthy people were frugal and never talked about their money or displayed their wealth, true wealth was being happy and with family, blah, blah, blah. Anyone who played along was accused of being superficial. Sort of like bling.
Yeah - we will see. Sometimes the Internet is a hard sad place. HA!
__________________

__________________
clobber is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 07-26-2016, 01:55 PM   #42
Recycles dryer sheets
 
Join Date: Jul 2015
Posts: 78
Quote:
Originally Posted by Bestwifeever View Post
A fine line imo using the above qualifiers between wealthy and being a snob. Only a snob would care if someone likes to eat at Denny's, again imo.
Fair point and maybe I should not have called out a specific place. My point was to give a typical example of a place where someone might eat just because it is cheap.
__________________

__________________
clobber is offline   Reply With Quote
Old 07-26-2016, 01:57 PM   #43
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
NW-Bound's Avatar
 
Join Date: Jul 2008
Posts: 16,480
Quote:
Originally Posted by Tadpole View Post
My chauffeur drives me to Denny's for the AARP discount.
But to be truly rich and generous, I would invite my chauffeur in for a dinner with me.
__________________
"Old age is the most unexpected of all things that can happen to a man" -- Leo Tolstoy
NW-Bound is online now   Reply With Quote
Old 07-26-2016, 01:57 PM   #44
Recycles dryer sheets
 
Join Date: Jul 2015
Posts: 78
Quote:
Originally Posted by DrRoy View Post
+1 I agree. You could be buying on credit. I read once that the wealthy pay less than 2% of their NW in income taxes per year.
Well for the purpose of this discussion I'm talking about "the wealthy" and not buying on credit. Assume you have $2M in liquid assets and can get your hands on $200 or $100K out of those accounts immediately.

I'm not saying the wealthy don't use credit.
__________________
clobber is offline   Reply With Quote
Old 07-26-2016, 02:02 PM   #45
Recycles dryer sheets
 
Join Date: Jul 2015
Posts: 78
Quote:
Originally Posted by daylatedollarshort View Post
We decided our price point for good food is about $10 a meal per person. We can get tasty Thai, Vietnamese or Indian lunch specials for that price and have never found anything we felt was tastier or healthier. I had the chance to get some discount tickets to a foodie event in the city last year with chefs from Michelin starred restaurants. The event was a lot of fun and in a skyscraper with pretty views. But we realized the food we thought was best were the Asian dishes and we can get those close to home and without paying much.
Now I'm hungry!

Agreed on those counts. So - let me guess. You would not have gone to the foodie event had it not been for the discount tickets? I'm thinking a #3 category person that I described would absolutely go for discounts, but would not give a second thought to paying full price.

I don't care what category anyone here fits into. Just trying to identify those behaviors, indicators, or "splurges" of a cat 3 person.
__________________
clobber is offline   Reply With Quote
Old 07-26-2016, 02:06 PM   #46
Full time employment: Posting here.
 
Join Date: Nov 2005
Posts: 541
Quote:
Originally Posted by clobber View Post
So, what are some specific activities that might indicate a person is wealthy?
Any particular expenditure can only be properly understood within the context of a person's overall income, expenses, and assets. So, I would argue that the 'information value' of any particular expenditure is rather low.

BTW, my mother likes to eat at the Golden Corral all-you-can-eat buffet, which hardly caters to the 1%. So, you really can't infer anything from a person's dining-out preferences.
__________________
socca is offline   Reply With Quote
Old 07-26-2016, 02:10 PM   #47
Thinks s/he gets paid by the post
RobbieB's Avatar
 
Join Date: Mar 2016
Location: Central CA
Posts: 1,462
I look at it as "having more fun" and doing what I want to do.

I still do a lot of DIY and not because I'm trying to save money, but because I like building stuff and I can design it exactly how I want it.

I've always loved east coast seafood, but it was a long time between trips to the east coast. So now I just FedEx the stuff whenever I get the urge.

I've always loved motorcycles but never bought anything that cost over 10 grand. That BMW was twice that and I can afford it and just wrote a check. But it's one of the best sport tourers there is.

So that's my plan. Do what I want and what I like and just have fun!
__________________
Retired at 59 in 2014. Should have done it sooner but I worried too much.
RobbieB is offline   Reply With Quote
Old 07-26-2016, 02:12 PM   #48
Thinks s/he gets paid by the post
 
Join Date: Feb 2013
Posts: 4,593
In The Millionaire Next Door book, the first time the authors did a focus group with millionaires worth $10M or more, this is what happened:

"The first multi-millionaire to arrive was offered a glass of wine -- very expensive 1970 Bordeaux. He replied, "I drink Scotch and two kinds of beer — Budweiser and Free!" By the end of the two-hour focus group, not a single person had touched the pate or the vintage wines.
The book continues with, "Today, we are much wiser about the lifestyles of the affluent. When we interview millionaires these days, we provide them with coffee, tea, soft drinks, beer, scotch and club sandwiches. Of course, we also pay them between $100. and $200 apiece."

Source:
http://www.alanrosenspan.com/recent_pubs/marketing_affluent.html
__________________
Even clouds seem bright and breezy, 'Cause the livin' is free and easy, See the rat race in a new way, Like you're wakin' up to a new day (Dr. Tarr and Professor Fether lyrics, Alan Parsons Project, based on an EA Poe story)
daylatedollarshort is online now   Reply With Quote
Old 07-26-2016, 02:19 PM   #49
Moderator Emeritus
Bestwifeever's Avatar
 
Join Date: Sep 2007
Posts: 15,458
Quote:
Originally Posted by clobber View Post
Fair point and maybe I should not have called out a specific place. My point was to give a typical example of a place where someone might eat just because it is cheap.
If we wanted pancakes we might go to Denny's (we actually never go to Denny's because there is an awesome diner under a half mile from our house with mighty fine breakfasts), but cost isn't a factor in that decision. One thing we have been surprised and happy about is that cost isn't a factor in most of our decisions any more, so we feel wealthier now, compared to previous stages of our lives (we are not making decisions like buying an airplane or a second home).
__________________

Bestwifeever is offline   Reply With Quote
Old 07-26-2016, 02:25 PM   #50
Thinks s/he gets paid by the post
RunningBum's Avatar
 
Join Date: Jun 2007
Posts: 3,818
Just a few minutes ago I splurged on a not-quite 2 hour direct round trip domestic flight, paying $329 instead of $249 to leave mid day rather than 7am, and to fly economy plus outbound and first class return. Probably not quite a wealth indicator but it's nice to not have to scrimp for the lowest fare.


International business class would probably be a good indication to me. I have a couple of very long international trips I'd like to do but I hate the idea of being cramped on planes for so long. The price diff of economy/plus/business is $1000/2500/4000 on a quick check today. Hard to justify an extra $3000, but on the other hand I just can't see putting up with flying cattle class for extra long flights, so it might come down to whether I'm willing to pay $2500 or $4000 rather than $1000 in airfare to take such a trip. So I guess if I didn't blink at that I probably would consider myself wealthy, instead of what I'd call "wealthy enough".
__________________
RunningBum is offline   Reply With Quote
Old 07-26-2016, 02:25 PM   #51
Thinks s/he gets paid by the post
RobbieB's Avatar
 
Join Date: Mar 2016
Location: Central CA
Posts: 1,462
Nope, no airplanes for me either -

But I will have a boat on the Delta.

Not getting a new house, this one is paid for, but I'm painting now and soon all the flooring will be replaced with 1st class stuff.

The important thing is to go "large" on the stuff you want to go large on -
__________________
Retired at 59 in 2014. Should have done it sooner but I worried too much.
RobbieB is offline   Reply With Quote
Old 07-26-2016, 02:35 PM   #52
Recycles dryer sheets
 
Join Date: Jul 2015
Posts: 78
Quote:
Originally Posted by socca View Post
Any particular expenditure can only be properly understood within the context of a person's overall income, expenses, and assets. So, I would argue that the 'information value' of any particular expenditure is rather low.

BTW, my mother likes to eat at the Golden Corral all-you-can-eat buffet, which hardly caters to the 1%. So, you really can't infer anything from a person's dining-out preferences.
I think that is what I am asking. I mean, you are right that any particular expenditure can only be understood within the context. So, what I am asking is: What particular expenditures would (or might) indicate that a person is in a wealthy context.
__________________
clobber is offline   Reply With Quote
Old 07-26-2016, 02:36 PM   #53
Full time employment: Posting here.
 
Join Date: Feb 2013
Location: Toronto
Posts: 919
Quote:
Originally Posted by GravitySucks View Post
When I go to the local burger joint I order the Cowboy Burger, but pay them a quarter to replace the Jack cheese with sharp Cheddar.
And I take my own real maple syrup to Denny's! (Or anywhere serving anything to which it might be applied - maybe even Cowboy Burger!!)
__________________
6miths is offline   Reply With Quote
Old 07-26-2016, 02:43 PM   #54
Recycles dryer sheets
 
Join Date: Jul 2015
Posts: 78
Quote:
Originally Posted by RunningBum View Post
Just a few minutes ago I splurged on a not-quite 2 hour direct round trip domestic flight, paying $329 instead of $249 to leave mid day rather than 7am, and to fly economy plus outbound and first class return. Probably not quite a wealth indicator but it's nice to not have to scrimp for the lowest fare.


International business class would probably be a good indication to me. I have a couple of very long international trips I'd like to do but I hate the idea of being cramped on planes for so long. The price diff of economy/plus/business is $1000/2500/4000 on a quick check today. Hard to justify an extra $3000, but on the other hand I just can't see putting up with flying cattle class for extra long flights, so it might come down to whether I'm willing to pay $2500 or $4000 rather than $1000 in airfare to take such a trip. So I guess if I didn't blink at that I probably would consider myself wealthy, instead of what I'd call "wealthy enough".
I think both of your examples qualify as indicators on different scales. Nice.

Why are you blinking on the $1000/2500/4000? Is it being frugal? Can you just barely afford the $4000? Is it just knowing you can get there for $1000K?

Just wondering
__________________
clobber is offline   Reply With Quote
Old 07-26-2016, 02:43 PM   #55
Moderator
Walt34's Avatar
 
Join Date: Dec 2007
Location: Eastern WV Panhandle
Posts: 14,355
Plumbing and me do not play nice together, and I'm rich because whenever there's a plumbing problem, I just call a plumber.
__________________
I heard the call to do nothing. So I answered it.
Walt34 is offline   Reply With Quote
Old 07-26-2016, 02:45 PM   #56
Recycles dryer sheets
Sojourner's Avatar
 
Join Date: Jan 2012
Posts: 324
Quote:
Originally Posted by daylatedollarshort View Post
In The Millionaire Next Door book, the first time the authors did a focus group with millionaires worth $10M or more, this is what happened:

"The first multi-millionaire to arrive was offered a glass of wine -- very expensive 1970 Bordeaux. He replied, "I drink Scotch and two kinds of beer Budweiser and Free!" By the end of the two-hour focus group, not a single person had touched the pate or the vintage wines.
The book continues with, "Today, we are much wiser about the lifestyles of the affluent. When we interview millionaires these days, we provide them with coffee, tea, soft drinks, beer, scotch and club sandwiches. Of course, we also pay them between $100. and $200 apiece."

Source:
http://www.alanrosenspan.com/recent_pubs/marketing_affluent.html
Just wanted to say how much I love that book and how I really believe reading it (multiple times) set me on the LBYM path to the magical land of FIRE. And btw, if I had been in that focus group I would've gladly accepted the glass of vintage Bordeaux and then asked politely for a refill (or two).

As for wealth indicators, I think it's all somewhat relative, but I'd have to agree with things like splurging for $3000 business class tickets on an int'l flight. For me, that's kind of the definition of a wealthy splurge. But... it's not hard to imagine someone of middle-class or lower means doing that, too. It seems like many non-wealthy people spend lavishly and extravagantly on certain things occasionally. This was a big point in The Millionaire Next Door... the whole "big hat, no cattle" lifestyle. Perhaps a better wealth indicator would be the ability to consistently spend $3000 for business class seats on every international flight over the course of many years, with no significant impact to your financial health or net worth.
__________________
Sojourner is online now   Reply With Quote
Old 07-26-2016, 02:48 PM   #57
Thinks s/he gets paid by the post
 
Join Date: Feb 2013
Posts: 4,593
Quote:
Originally Posted by clobber View Post
Now I'm hungry!

Agreed on those counts. So - let me guess. You would not have gone to the foodie event had it not been for the discount tickets? I'm thinking a #3 category person that I described would absolutely go for discounts, but would not give a second thought to paying full price.

I don't care what category anyone here fits into. Just trying to identify those behaviors, indicators, or "splurges" of a cat 3 person.
I would not have gone to the foodie event at full price. There are a lot of fun free and cheap things to do in our area plus we have assorted memberships in senior clubs, nonprofits and seat filler subscriptions, so every week we usually have to more discount and free event options than we have time to go to anyway.
__________________
Even clouds seem bright and breezy, 'Cause the livin' is free and easy, See the rat race in a new way, Like you're wakin' up to a new day (Dr. Tarr and Professor Fether lyrics, Alan Parsons Project, based on an EA Poe story)
daylatedollarshort is online now   Reply With Quote
Old 07-26-2016, 02:52 PM   #58
Thinks s/he gets paid by the post
RobbieB's Avatar
 
Join Date: Mar 2016
Location: Central CA
Posts: 1,462
Yup, that's one of mine -

When I spent 3X the coach fare for the girlfriend and I to go to Detroit for my buddies daughter's wedding I cringed. 3X times 2. Money down the drain. But hey, I don't like flying (lotta past business travel) and it was nice getting the "first class treatment" as well as the big seats.

Never coach again -
__________________
Retired at 59 in 2014. Should have done it sooner but I worried too much.
RobbieB is offline   Reply With Quote
Old 07-26-2016, 02:53 PM   #59
Thinks s/he gets paid by the post
happy2bretired's Avatar
 
Join Date: Mar 2007
Location: Nebraska
Posts: 1,314
I think I'm a #3. Every year I tend to do or buy something that I consider "fun" for me and probably frivolous to most on this board.

I'm not rich but I am comfortable in my paid off home, in a low cost of living, mid sized city. I have a budget, I owe no money to anyone and I spend on what makes me happy.

I've purchased:
Pilates apparatus, rowing machine
Travel (Germany, Brazil, cruises)
New furniture (I have a small modest home so not much furniture is required) including 2 Stressless recliners and a Hancock and Moore leather sofa
I pay for streaming services that I enjoy
I buy whatever I want at the grocery store
I seldom eat out, but when I do, I try to include my family and don't worry a bit about the cost.

I find things to spend on that probably no one here thinks is right for them but it is for me and I'm very content with what I have.


Sent from my iPhone using Early Retirement Forum
__________________
happy2bretired is offline   Reply With Quote
Old 07-26-2016, 02:56 PM   #60
Full time employment: Posting here.
 
Join Date: Mar 2015
Location: winnipeg
Posts: 583
I retired debt free at 53 and rarely worry about price tags on any item under $1000 as long as I know it's a good deal. For me, that's wealthy.

I know people up to their ears in debt that would never set foot in a Denny's because they feel that they are "above" that level of restaurant, but they will drop $200 that they can't afford on a regular basis at a well known higher end restaurant.

I also have a good friend worth at least $10 million that goes to breakfast specials with me, and we will share coupons to get reduced rates on golf.
__________________

__________________
Music Lover is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
YE Predictions for major economies and financial indicators MichaelB FIRE and Money 1 08-24-2015 12:23 PM
New study - Systemic Importance Indicators for US Bank Holding Companies stephenson FIRE and Money 0 02-17-2015 02:51 PM
What Will The Valuations Of These Indicators Be End of 2006 Daneboy FIRE and Money 23 12-29-2006 04:47 PM
Leading Indicators??? nwsteve FIRE and Money 0 08-27-2006 02:25 PM
Wealth accumulation phase rate of return newellcr Young Dreamers 16 09-02-2003 08:58 AM

 

 
All times are GMT -6. The time now is 01:48 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2016, vBulletin Solutions, Inc.