Indicators of Wealth?

[NW-Bound]

Surely, of what use are the options if they do not get exercised? But one does not have to do them all (or even can afford to). The option that an individual chooses may not appeal to the average Joe or Jane, but it makes him/her happy and that's all that matters.

If we talk about a person himself feeling wealthy rather than how others view him, then it is even more vague. A person with $500K may feel wealthy, but another may need more. And relative to a billionaire, we are all paupers.

I have no fancy cars, but two nice homes at different climates to move between. A poster here has 4 (or is it 5) homes. I don't feel wealthy at all, but I am not envious either.

 

[rodi]

Just ate two PBJ's and two bananas for breakfast. Nourishing, tastes good, and costs very little.

I prefer chunky. Yet another indication (as Khan would say) that I am not really a woman?

Am thinking of going big-time and switching to organic PB, as I've heard it tastes better than commercial.

I prefer the organic or "all natural"

The key for the "all natural" is that the ingredient list is short: Peanuts.

You have to stir it - because the oil separates out - so it's a bit more hassle... but you don't have any of the hydrogenated stuff they stick in the regular peanut butter... and it definitely has a different (better, IMO) flavor.

 

[haha]

Bragging either subtle or gross is the main pastime here. Since people here mostly think themselves wealthy, maybe bragging is an indicator of a certain level of financial wealth?

Ha

 

[rodi]

Bragging either subtle or gross is the main pastime here. Since people here mostly think themselves wealthy, maybe bragging is an indicator of a certain level of financial wealth?

Ha

I don't know if "most" people here consider themselves wealthy... It seems there are 2 camps... Those that have learned to be happy on low income (with smaller nest eggs) and those that amassed bigger nest eggs and can live much larger (whether they choose to, or not).

Since my nest egg is smaller than many mentioned in the "do I have enough to retire" threads... I don't consider myself wealthy. I definitely have to watch what I spend...

 

[aja8888]

That might explain why the prices at Barrett-Jackson have dropped? I thought it was the recession.

Not entirely. Many of these classics and retro-mods are just going from auction to auction to see if the most recent owner can flip the car for a higher price.

Also, the big money collectors have bought all available models in the line of car they wish to collect (new inventory going stale with no buyers). Sellers are reluctant to say, for example, sell a 1955 Chev sedan they have spent $100 K to restore it for an auction price of 60% of that. So the reserve over $100 K doesn't get met and the car is not sold (off to the next auction).

 

[NW-Bound]

... I don't consider myself wealthy. I definitely have to watch what I spend...

I already spend more than I expected to. And my portfolio is flat for the last 2 years, which means I have been spending principal.

Yes, I have been watching. I am watching.

No sense of feeling wealthy here at all (even with the fancy booze that I have, which is worth a measly $2K total as I said ).

 

[RobbieB]

The monthly statement just came in and I see that I'm up 55 grand from last month.

My bag was a little flat 2014 & 2015, but it's really doing well in 2016 -

More caviar and lobster this month!

 

[REWahoo]

Congrats, RobbieB.

Can we expect monthly reports from you when the market goes into a screaming dive?

 

[RobbieB]

Absolutely.

I share everything, the joy and the tears.

Oh yeah, the 2 years before I was happy if I didn't lose more than 60 grand a month. I think that was my biggest loss. It's all on paper ya know, it all goes up and down and all around.

 

[NW-Bound]

I think your motto should be: "Market goes up, I eat caviar. Market goes down, I eat caviar".

You do not have any other major expenses, so why not?

 

[RobbieB]

Yeah Baby! I like you, you get me -

Planning on getting married in 2 years, girlfriend has a couple of kids and was a stay at home mom. Helping her. But yeah, other than the 80 grand or so for the house, not much.

 

[LitGal]

Well gosh, I'm not rich. I wouldn't think twice at staying at a motel 6 or Super 8, and having dinner at Denny's or Sizzler that night, the next time we go through a hurricane evacuation.

I think being rich is:

(1) Not feeling the need to constantly compare one's lifestyle and spending choices with the lifestyles and spending choices of friends and acquaintances

(2) Awakening to find one is sincerely, thoroughly happy each morning and staying that way pretty much all day long

(3) Not having to worry about the future, where the next meal is coming from or where to sleep each night

(4) Thinking of things and experiences that would brighten one's life in the future, and being able to afford those things and experiences.

(5) Feeling that one has ENOUGH. Eradicating that crazy-making hoarding/consumerist drive for once and for all.

+1 Such lovely thoughts. And they provide true peace and contentment!

 

[LitGal]

Thanks for the replies everyone!

TLR. Maybe I needed to be more specific. If you fall into category 3 below, what are some of the indicators that reflect that stage of wealth?


It was probably inevitable that some of the replies would at least allude to wealth vs happiness which I didn't really intend. I think that poor, middle, and upper income/wealth people can all be happy (or not). I only wanted to identify some of those things that wealthy people tend to do that others don't.

I would generally categorize rich/wealthy into 3 groups which also seem to be reflected in your replies:

1) The Bill Gates or Jay Leno with the resources to have the yacht with the submarine and dual helicopter pads. I think we all get the concept there. You literally have NO financial constraints to do anything. As @starry night pointed out, you are also unlimited in the ability to give.

2) The overly frugal millionaire next door. We all know the stories (and actually know a few of these people) who are "rich" or "wealthy" because, if they go out for dinner at all, would go to the Sizzler. Only on their 50th birthday would they go to Outback - if someone else were paying. They would not be caught DEAD in a Chart House or Ruth's Chris. There is NO way the air conditioner would be set to 72 on a hot summer day. Probably would not even be turned on, but at best 80 degrees.

For me, I just don't see the point. To die with the biggest bank account number possible? Contrary to what @Options said, I do equate some degree of wealth with spending. Perhaps I'm not using the right terminology, but many of these frugal people with lots of money might not have "financial" constraints on activities, but rather have mental ones.

Lets face it, no one has ever had a meal at Denny's and thought, "Man, that was awesome. I'm coming back tomorrow and having that again." That is not to knock Denny's. It is what it is. Of course I fall into the "live to eat" vs. "eat to live" category. Would I go to Denny's in a Hurricane evacuation (been through a couple myself)....sure.


3) The kind of person I'm talking about. One who has enough and will judiciously spend a portion of it. The person who will opt for the $3500 business class seat to Europe instead of the $1200 cattle class. This person knows what it means to spend the extra $2300 and actually thinks that it is a lot of money (it is!). He still chooses to spend it because he has enough and the comfort is worth it. This same person doesn't fret over spending an extra $1000 on a sunroof for his new Toyota 4Runner. Heck, not much difference between $37K and $38K anyway.


Again, maybe the wrong terminology, but to me wealth has a certain component of attitude. @WR2 makes a lot of good points, especially just having enough!

Though I fall into "Category 3," I would still not opt for the extra $2,300 for a seat. Instead, that same $ could buy me a couple more economy seats to Europe (so I could take two more trips with different friends). Doing so would leave more funds available to give to charity. I enjoy planning frugally so I can support the good work of underfunded non-profits AND still have my fun.

So, I do "judiciously spend" the savings, but still enjoy getting as much "bang for the buck" as possible. For example, DS was astounded that his mother (who shops at thrift stores and Aldi) has treated him to a Row 10 floor seat when he and I attend a Paul McCartney concert in a couple weeks. As I explained to him, seeing McCartney in person is on my bucket list and, since DH is unable to go with me, I am thrilled that DS will!!

 

[Markola]

Bragging either subtle or gross is the main pastime here. Since people here mostly think themselves wealthy, maybe bragging is an indicator of a certain level of financial wealth?



Ha

I am SO rich I have upgraded to almond butter. And I'm never going back! Never!


Sent from my iPad using Early Retirement Forum

 

[RobbieB]

Almond butter is really good!

Have you tried cashew butter?

 

[daylatedollarshort]

Though I fall into "Category 3," I would still not opt for the extra $2,300 for a seat. Instead, that same $ could buy me a couple more economy seats to Europe (so I could take two more trips with different friends). Doing so would leave more funds available to give to charity. I enjoy planning frugally so I can support the good work of underfunded non-profits AND still have my fun.

So, I do "judiciously spend" the savings, but still enjoy getting as much "bang for the buck" as possible. For example, DS was astounded that his mother (who shops at thrift stores and Aldi) has treated him to a Row 10 floor seat when he and I attend a Paul McCartney concert in a couple weeks. As I explained to him, seeing McCartney in person is on my bucket list and, since DH is unable to go with me, I am thrilled that DS will!!

I think the same way, though for me besides charity I also think about the kids, extended LTC, simply living unusually long or some future unknown. We have friends helping out grandkids and even great grandkids who weren't even born yet when they retired. It is nice they have the money to do that even after being retired for quite some time. I want to be in the same position in 20 years.

 

[NW-Bound]

Yeah Baby! I like you, you get me -

Planning on getting married in 2 years, girlfriend has a couple of kids and was a stay at home mom. Helping her. But yeah, other than the 80 grand or so for the house, not much.

The new wife and her kids may give you a chance to spend some money. I don't know what the 80 grand is for, but it's not something you spend every year either, right?

About food indulgence, food is still fairly cheap in this country, particularly for someone with a wide diet like I do. Other than really expensive stuff like caviar or exotic food like jamón ibérico or truffle, one can indulge in food and not spend that much compared to other indulgences. How much filet mignon or lobster can one eat before it comes out of his ears? I like a wide variety of food, and many food items that I like are not at all expensive.

We are really blessed to be in a country where food cost is not a big percentage of the living expenses as in other countries.

 

[LitGal]

Yes, I Also Use That List....

I think the same way, though for me besides charity I also think about the kids, extended LTC, simply living unusually long or some future unknown. We have friends helping out grandkids and even great grandkids who weren't even born yet when they retired. It is nice they have the money to do that even after being retired for quite some time. I want to be in the same position in 20 years.

+1 Charitable contributions are just one reason for my continued frugality. I come from a family who was never able to offer financial help, and who had little for LTC. OTOH, DH's parents bequeathed us enough $ so we could pay off our house in our 40's, which allowed us to double down on saving for ER. Their generosity was an amazing gift which truly helped smooth out our life a bit.

DH's family also paid for his undergrad years, making it much easier for him to pay for grad school. I paid for grad and undergrad myself (should join that peanut butter discussion!), so have a keen sense of just how nice it would be to "get some help."

I hope that DH, his wife, and daughter will appreciate their bequests as much as we appreciated the one from my in-laws. And if my little granddaughter shows academic interests, I hope to help with her schooling.

While I don't have the wealth of many on this forum, I feel "rich" because my LTC is paid for, part of my estate will go to charity, and the rest will help my family. DH's and my LBOM (and fairly simple lifestyle) are paying off as we had hoped. And I am enjoying the bucket list and travel so much that DS's frequent questions are, "Where are you going next?" and "When do you get home?"

 

[RobbieB]

Yup. I had the $7.95 steak & eggs special at the black bear today for lunch, it was good.

I'm gonna buy at least an ounce of fresh truffle this year, have tried before and been shut out. Season is very short. I'm gonna just slice off thin slices and eat them. After that I'm gonna shred them on everything.

 

[RobbieB]

Oh yeah, the 80 grand...

Solar power, and new flooring. I don't have much space so I'm thinking white marble tile with gold veins for the kitchen, bathrooms and foyer. Twenty five bucks a square foot just for the tile. With heater wires in the bathrooms. And hardwood and rich plush carpet and xeriscape the outdoors and a hot tub with a gazebo.

Let the good times roll!

 

[Another Reader]

Black Bear is a stealth restaurant chain that has grown a lot. Ate breakfast and lunch occasionally at one here maybe 10 years ago. Lots of food on the plate. Never realized how many there are now. They are even in Arizona.

I'd skip the marble and go for stone. Something to match the new granite counters....

 

[RobbieB]

Marble is stone?

 

[NW-Bound]

I had marble installed for the foyer. It was 10 years ago, and now the marble is dull. Marble is quite soft and porous. So, it can get stained too. The store talked me into doing some porcelain tiles that looked like marble, saying they would be more durable. I declined, wanting the real thing. Now, I regret it.

Marble needs to be polished every so often. My brother has a larger area than mine, and he has been having problem getting someone that knows how to do the job.

 

[HFWR]

Bragging either subtle or gross is the main pastime here. Since people here mostly think themselves wealthy, maybe bragging is an indicator of a certain level of financial wealth?



Ha

I think the decidedly generic stuff that I own is a perfect indicator of my wealth...

 

[RobbieB]

Yeah, I got plenty of generic stuff too. It's all going to the trash can.

Speaking of trash cans my new one arrived, a Rubbermaid commercial for the kitchen. Cost ninety bucks and fifty bucks to ship it. Kinda big.

So the marble gets dull eh? Maybe I need that new porcelain? Or "real stone" granite?

I dunno, I'm new to all this "rich stuff" -