The world of the rich and wealthy__ why throw away money?

Oh, so now we can generalize that the noveau riche are more careful than the ancien riche? Perhaps this is true, but this seems to be a value statement more than one based on fact.

I'm really contemplating whether or not I should enter this thread...

It's crass boredom at it's best and to be quite honest, it's the Nouveau Riche that spend like idiots. The true old money is prudent. If they spend it is on investment potential or philanthropic interests (ie: art, museums, public works, etc.) They already have the toys they want and don't need Dolce jeans to prove they are of the priviledged set.

All the labels and such are like dog collars for the stupidly new wealthy ones.

My mother used to say...

"How do the rich stay rich? They don't spend foolishly."

While you're contemplating, QI, let me also throw in that there are a whole lot of wannabe rich folks who may buy the expensive crap in the misguided belief that they will look rich... Okay, QI, was that enough time? Ready to jump in yet?

I agree that people can be classy and sophisticated without spending a fortune. However, I don't think people have a right to cast judgement on those who do like designer clothing, shoes, handbags, or those who funnel more money into the economy because they are able to afford it. Does it mean they are shallow? No. Does it mean they spoiled? No. Does it mean they are gullible or not good stewards of their money? No.

People spend as they like. People likewise live as they feel they can. Sometimes too extravagantly, yes, but nonetheless as they want. Who are we to set a standard as to what is appropriate or not.

My wife and I like designer clothing. I wear DG; so does she. I own a Fendi watch; she has a Fendi bag as well as Coach, Prada and many others. We live in a house that by many of your standards, as it appears here, is wasteful spending. We travel a lot internationally. I dare say that we feel high and mighty or set ourselves apart from others. We are not those types of people. We are blessed mid-class family who enjoy nice things. We do know our limitations and spend accordingly. And, for the record, we do shop at the Dollar General or way discounted stores, too. It is absurd, I think to be so stereotypical in assessing people by what they spend. That is only surface exposure!

It is not fair for clump people into groups.... It continously shows intolerance.

Just my opinion.

I made a distinction, for me the problem is with those who HAVE to have a label on everything they have, I can understand the urge to have that one bag that you can't get anywhere else, it's when the only value you place on objects is because they're from a certain designer, that anything without that label by default can't compare to something with an exclusive name on it.

I think it's all relative. I'm sure people in Africa, India, and China (the poor parts of these regions) would think that most of you are crazy for your spending habits.

Would you prefer that the rich merely stashed their money under the mattress or added a few more thousand into their hedge fund?

I'd prefer that they gave it to me :)

I couldn't care less about all this exclusive designer stuff. I wouldn't buy any of it if I had a billion dollars. I just want stuff that is functional, and holds up well. I guess that's why I drive a Toyota. They are boring and don't stand out at all. However, they are well engineered, very reliable, and still built to be repaired. I am a very practical person.

LOL. That's what my dad always told us. Or it was more like - "The rich stay rich because they are professional cheapskates." in my case.

Yes, the lives of the rich were always a mystery for me growing up. It was always them who lived up there on the hill over there. But the thing was our family didn't spend foolishly and I'd say my dad was a cheapskate but we certainly weren't rich.

Rich people have learned to spend money wisely. They understand what quality is and how in the long run it actually saves you money. They will invest in a good quality tailored suit that will hold up perfectly for 5 years and look fantastic instead of buying 5 off the rack suits of mediocre quality that are ill fitting that look like you shop at Sears.

The same holds true for many household items - they will buy things that appreciate in value and are worth more than they paid for including china, crystal, artwork, rare books, antiques...etc. They understand and use the system to their advantage including tax breaks, loop holes in tax codes, side stepping estate taxes, capital gains tax breaks, how to minimize property assessments, inside knowledge or tips on stocks, and looking at cash flow and investments vs. living off a paycheck.

Also when you are making $10K to $20K a month as many doctors and lawyers do, spending $350 for a pair of jeans is chump change. They have a different standard of living but they also have a different level of expenses of maintaining that lifestyle. You tend to live by your means as they say. Many times the people you rely on for your livelihood whether directly or indirectly have a level of wealth that you need to sustain within that social group to keep access to connections, introductions to other wealthy or powerful people, and informal business referrals. This includes country clubs, city clubs, dinner clubs, golf tournaments, philanthropic organizations, alumni groups, political fundraisers, private school athletic boosters...etc. There are literally thousands of these organizations whose primary function is for rich people to network.

Contrary to what most people think most of the extrememly rich people I know are quite amiable and charming rather than being snobby or haughty. They are for the most part very nice people, social and interesting. They are materially comfortable and enjoy fine things but are not ostentatious or outwardly vocal about their wealth. They are not as philanthropic as they would like to think of themselves as being.

People say government was invented to keep the masses from killing the rich.

HUnny its in presentation. I have bought cloze from the 2nd hand store, but if you walk in feeling like a million $and like you own the place, they will be asking, who's that bitch. yes i would love to have a louie vuitton wallet, but i think the same way, This could be a weekend getaway, then i come back to reality and realness!

Eloquently written. You've precisely nailed the socialization patterns and norms of upper-middle class and elite families.

People do live by their means. Eample, if my wife and I made $7,000 a month, we would probably live as a family making $84K. If, however, we make $16K plus per month, then we can afford to have those "other things" that we would desire. Simple fact, the more you earn the more likely you spend.

And, like you said, those who make a lot normally are not boastful by it. Certainly they might drive a Benz, or have their clothing tailored (which everyone should have at least one tailored suit - you will never want anything else after that!), but for the most part, are normal people too who want to be included in things and appreciated for their other characteristics - not their money market accounts, stocks or property investments.

I will now hush.........

The only way I could afford a luxury handbag is if I worked 80 Hours+overtime no way in hell I mean yeah I would have a fat ass paycheck but by the time I spend it on a silly handbag I would probably have $1.00 in my checking account. If I really wanted it that bad I would have to kiss my boss's ass and be a goody goody to get another raise. Instead of making $13.45/hr like I do now I would have to make $25.00/hr to afford a leopard print handbag. I really wanted that bag but the price tag made me feel like a poor person. ack....

Well, the thing is, I have access to a lot of money, and by a lot I mean a very large quantity. Technically I'm not rich myself, since I have no legal right to the money (unmarried), but that doesn't change what I can do with it. The problem is that people who aren't around wealthy people frequently don't really understand that one can have terrible spending habits and be a very good/likeable person. Judging someone, especially a wealthy/rich person, by how they spend their money is not necessarily a true assessment of their character. I have friends who exactly fit the profile of the "frivolous spending" type, but are otherwise very normal people. I myself probably spend more than is needed a good amount of the time.

I just don't think it's a good habit to criticize others based on their spending habits. Things are often not what they appear.

I was talking to a friend about something similar to this tonight, and your statement brought up a point we were making about perception of wealth. He and his wife are physicians, and my husband and I are moderately successful, so we both fall into that $10K to $20K a month range. One would think that income would be a lot-- but like most Americans, we're living paycheck to paycheck as much as everyone else is. We both shop at Target and Wal-Mart for a lot of things. We've both chosen to provide certain things for our families-- good schooling, health insurance, and nice homes being the most expensive chunk of our incomes.

We don't feel any richer now than we did when we were making 30K a year in college. Making money means that we have to dress the part, travel more, host parties, go to business lunches and affairs, buy equipment for work, etc. Having a nice home in a nice neighborhood means spending more on energy bills, more on maintenance to maintain your property value... It feels like you can never really get ahead. This is something that is common among most people I know in almost every income level.

On the other hand, I know single folks who make much less than I do who manage to buy all the designer handbags, jeans, $400 cell phones, etc. because that's where they choose to spend their money. If you live at home with your parents, all of your income is disposable. It's what your priorities are more than the amount of cash you bring in every week.

To each his own. I benefit immensely from families who spend $200,000 on a wedding or $20,000 on a 16th birthday party.