Indicators of Wealth?

[RobbieB]

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 -

 

[clobber]

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.

 

[6miths]

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!!)

 

[clobber]

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

 

[Walt34]

Plumbing and me do not play nice together, and I'm rich because whenever there's a plumbing problem, I just call a plumber.

 

[Sojourner]

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:

"[FONT=Arial, Helvetica, sans-serif]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!"[/FONT] [FONT=Arial, Helvetica, sans-serif]By the end of the two-hour focus group, not a single person had touched the pate or the vintage wines.[/FONT]
[FONT=Arial, Helvetica, sans-serif]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."[/FONT]

[FONT=Arial, Helvetica, sans-serif]Source:[/FONT]
[FONT=Arial, Helvetica, sans-serif]http://www.alanrosenspan.com/recent_pubs/marketing_affluent.html
[/FONT]

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.

 

[daylatedollarshort]

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.

 

[RobbieB]

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 -

 

[happy2bretired]

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.


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[Music Lover]

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.

 

[audreyh1]

I don't eat at Denny's because I don't care for the ambiance, and ambiance is important to me. Oh, I don't care for the food either.

 

[clobber]

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.

Actually, that might be another indicator. Do you lean to the fun, free, and cheap things primarily because they are free and cheap? If there were three events happening Friday. You really would like to do all three, but the most exciting is $100 (concert?) and the other two are free. What would you do?

 

[dallas27]

Free time.


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[Sunset]

Actually, that might be another indicator. Do you lean to the fun, free, and cheap things primarily because they are free and cheap? If there were three events happening Friday. You really would like to do all three, but the most exciting is $100 (concert?) and the other two are free. What would you do?

Since all 3 are the same, I'd go to the free one, because otherwise I'd feel stupid, and I'd know for certainty I got my money's worth

 

[Sunset]

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!!)

You reminded me. I import my maple syrup from Canada, I like the taste better than local stuff here and I know which producer in Quebec makes it.

 

[NW-Bound]

I Donr eat at Denny's because I don't care for the ambiance, and ambiance is important to me. Oh, I don't care for the food either.

As mentioned in an earlier post, I have not eaten at Denny's in years. It and many other chains are not what we have in mind when we think of eating out.

However, it is not a place that I say I will never set foot in. They don't serve gourmet cuisine, but when traveling and in need of a meal, I would not hesitate to eat there.

Buffett eats at Burger King all the time. Do they serve gourmet burgers there?

 

[haha]

Girlfriend much better looking than ones self. If your girlfriend is better looking than you, you likely have something, and it may be wealth.

Ha

 

[Big_Hitter]

Girlfriend much better looking than ones self. If your girlfriend is better looking than you, you likely have something, and it may be wealth.

Ha

yep - my mom always said I should have been born rich instead of good looking

 

[aja8888]

Buffett eats at Burger King all the time. Do they serve gourmet burgers there?

We hold our daily ROMEO club meetings in a nearby BK. The place is very clean and the owner, a multi-millionaire and owner of six BK's, is in the group. They don't serve gourmet burgers but do have a respectable menu.

One of the fellows in our group is a retired CEO of a major energy services company and probably worth 10's of millions. Other ROMEO members are quite well off retirees and the group has been together for 10 years now.

It's not about the ambiance, it's really about who you are spending time with that's what's important. My DW's church group has lunches at Macaroni Grill and occasional breakfast get togethers at a nearby Denny's with a large private room attached to the main dining area.

We have lots of restaurants around us that have "ambiance" but are pretty expensive and we have found the food not good enough to justify the cost. DW and I will go to one of those for a special occasion, but it's not our usual choice.

 

[Sojourner]

Girlfriend much better looking than ones self. If your girlfriend is better looking than you, you likely have something, and it may be wealth.

Ha

Yes, definitely one of the most universal wealth indicators for men.

 

[NW-Bound]

I suddenly develop a craving for a hamburger. Doesn't have to be a gourmet burger or anything. Just a Whopper will do.

Do I brave the 110F heat to run out now to get one? Tough choice...

 

[aja8888]

I suddenly develop a craving for a hamburger. Doesn't have to be a gourmet burger or anything. Just a Whopper will do.

Do I brave the 110F heat to run out now to get one? Tough choice...

Go through the drive thru and stay in your car with the A/C on.

 

[daylatedollarshort]

Actually, that might be another indicator. Do you lean to the fun, free, and cheap things primarily because they are free and cheap? If there were three events happening Friday. You really would like to do all three, but the most exciting is $100 (concert?) and the other two are free. What would you do?

If we really wanted to do something for $100 we would do that, but all things being equal we will go with the freebies or cheap events and there are a lot of those where we live. Finding the bargains is half the fun.

We live in the SF Bay area so there's a lot of outdoor, park and public events that are always low cost, the library has free passes to many of the museums and tourist attractions and there's probably 50+ events each week on our various seat filler lists. There's even an online list by a guy who calls himself Johnny Funcheap. (He is also behind one of the seat filler membership groups.) So why pay more if we can find fun things to do that don't cost a lot? Then there is more to leave to the kids or charity.

 

[Music Lover]

girlfriend much better looking than ones self. If your girlfriend is better looking than you, you likely have something, and it may be wealth.

Ha

 

[scrabbler1]

When I bought my last car back in 2007 (a low-end Corolla which cost me about $18k), I recouped the cost of the car in 4 months just from investment gains in my non-401(k) portfolio. When I saw I was back to my pre-car balance, I said to myself, "Cool!"