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Old 11-21-2018, 07:47 AM
 
561 posts, read 148,127 times
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Quote:
Originally Posted by CaptainNJ View Post
its funny to me when people manufacture their own ideal rich person and speak as if they are talking about actual rich people. do you really think most rich people are re-soling their shoes? do you really believe that rich people aren't buying new cars? You may think that it's great for rich people to do this and i am sure many are, but many aren't also.
This rich person DOES have boots and shoes re-soled (none that cost $1,000 but still expensive and NOT made in China). Why not? If they're beautiful and comfortable and in otherwise good condition, I fix them. My cashmere sweaters are all 15-20 years old. My current car is a 2012, bought from Enterprise Rent-a-Car in 2014. I will probably never buy new again- last did that in 1991. Yesterday in the gym I wore a T-shirt from an event in 2000. It's no fashion show- I'm there to stay in shape.
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Old 11-21-2018, 08:01 AM
 
Location: Honolulu, HI
5,035 posts, read 1,289,448 times
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Quote:
Originally Posted by oregonwoodsmoke View Post
Everyone I know who is rich is extremely careful with money. .
Clearly you don’t have Instagram, I assure you there is no shortage of rich people (young and old) eager to spend and flaunt their money. And I’m talking actual rich people who don’t work for a living, with “mailbox money,” not wannabes.

But being frugal and careful with money is not enough to be rich. Not even close. To be rich you must create wealth, provide/create jobs, or have multiple sources of income.

If you’re rich, truly rich, you can both save your money and spend it (granted you’re not overspending).

You can’t take the money with you when you’re dead, and we’re all going to be dead one day. Sure there are Warren Bufffets out there who remain humble, Walmart and political family dynasties with massive wealth who remain off the radar, but there are also Silicon Valley billionaires in their 20s buying up sport cars and yachts and mansions.
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Old 11-21-2018, 10:47 AM
 
Location: NJ
22,939 posts, read 28,866,053 times
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Quote:
Originally Posted by athena53 View Post
This rich person DOES have boots and shoes re-soled (none that cost $1,000 but still expensive and NOT made in China). Why not? If they're beautiful and comfortable and in otherwise good condition, I fix them. My cashmere sweaters are all 15-20 years old. My current car is a 2012, bought from Enterprise Rent-a-Car in 2014. I will probably never buy new again- last did that in 1991. Yesterday in the gym I wore a T-shirt from an event in 2000. It's no fashion show- I'm there to stay in shape.
im not entirely sure what the purpose is of your post. i said that most rich people arent resoling their shoes or avoiding buying new cars. that very clearly means that it doesnt apply to all rich people.

by the nature of your post, it seems to me like you perceive yourself as unique. so you are just agreeing with me but want to tell everyone about your specific circumstances? congratulations on being rich!
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Old 11-21-2018, 01:39 PM
 
Location: The Triad (NC)
26,996 posts, read 58,569,899 times
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Quote:
Originally Posted by CaptainNJ View Post
im not entirely sure what the purpose is of your post.
Perhaps that you aren't distinguishing between "rich" and "Nouveau riche"

The latter has an emotional need to show themselves able to spend.
It often leads to the gratuitous and over spending being described and exampled.
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Old 11-21-2018, 01:50 PM
 
Location: N of citrus, S of decent corn
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You forego the gold plated dashboard on the Rolls.
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Old 11-21-2018, 01:50 PM
 
Location: NJ
22,939 posts, read 28,866,053 times
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Quote:
Originally Posted by MrRational View Post
Perhaps that you aren't distinguishing between "rich" and "Nouveau riche"

The latter has an emotional need to show themselves able to spend.
It often leads to the gratuitous and over spending being described and exampled.
while i understand the differences between various groups; im not a big fan of generalizations. especially when people say "rich people. . . ." and then proceed to go about their stereotypical rich person that they manufacture out of thin air (or they take a single example like warren buffet or themselves and pretend that is symbolic of most of the group).
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Old 11-21-2018, 03:43 PM
 
6,972 posts, read 3,814,393 times
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Quote:
Originally Posted by oregonwoodsmoke View Post
Everyone I know who is rich is extremely careful with money.

My definition of frugal is that you don't buy stuff you don't need, and when you do need something, you shop around to get the best price on the item that does the job well and that will last and work well until it isn't needed any more.

The right item at the best price is where the rich differ from the poor. The poor might get the best tennis shoes that they can afford. The rich can buy high end $1000 leather boots that will look good for years, and then be re-soled and worn for many more years. By the time the boots wear out, the poor have spent more replacing shoes than the rich man has spent on shoes. It's just that the poor man can't come up with the initial purchase price.

I lost an alpaca overcoat in a divorce. My husband got the coat from his grandfather, and I liberated it. He took it back when we split up. The coat still looked great and was classic styling. I can't even guess what it had cost new. It for sure hadn't been purchased at Walmart. It had been custom tailored out of the finest wool. Best item for the job, just not the best price for someone on a tight budget.

No one I know with money is driving a new car. They buy high end and take good care of it and continue to drive it until it is worn out. Buying something that is good enough to last until the job is done.
I agree with you until you got to the new car part.

I have quite a few customers that are rich and famous athletes or politicians. They do buy new cars. A very rich baseball player has a ridiculous custom made armored vehicle. The kicker is he doesn’t even drive it often. Now if they need plumbing work, they negotiate the price and argue over a dollar. They have tons of money but want to argue over a couple thousand dollar repair.

I have one lady that has over $200k in shoes. We have 2 technicians spend 8 hours in her closet, 3 times a year moving her shoes to access her attic to change filters. And she complains we charge $8k a year. That is only 2-4 pairs of her shoes...
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Old 11-23-2018, 10:58 PM
 
4,502 posts, read 5,381,920 times
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Quote:
Originally Posted by Motion View Post
How do you adopt a frugal lifestyle when you're rich? Say like a pro athlete.
I think it's the same principle but everything is just elevated. That's why it's a bit difficult to discuss finances with equally frugal people who are much less well off. In my social group, which would be friends, my dad's employees, my dad's friends, etc., the fact that I buy clothes every 2-3 years and never anything fancy (jeans, T-shirts, some new tennis shoes, etc.) is frugal. To someone else, it's not frugal because I buy clothes brand new (even if it's at the outlet mall) and they shop at Goodwill or whatever. It's really all about income versus expenses, to me.

I think of being frugal as an active intention to pay bottom rate for what you want, on an individual "item" level, and then in the bigger picture that you are saving at least 30% if not 50% of your income. For me, I spend less well less than half of my income, this year would be under 1/3 of my income, so I consider myself frugal but I don't behave in a way that would make, let's say, someone on a limited income think I'm frugal. Whenever available, I only see new movies in IMAX for instance, because it's important to me that a movie be shown properly with the best quality sound and visual presentation. But where things are less important to me, like clothing and whatnot, I rarely buy much of anything. I'll buy some 4K movies on sale (I bought 5 movies I think all year before this week, then I got 9 that were massively on sale and I had all of them on my list all year long waiting for good deals -- even though I could have easily afforded them before, but I waited to get the best deal).

I think the mistake some people make is seeing frugality as absolute, whereas I see it as entirely relative. If someone lives in a $2 million house but is worth $100M+, to me that person is incredibly frugal. So many people at that level would have easily a $10M house or maybe even $15M, but here's a person living in a $2M house that's very nice, I'm sure very comfortable, but likely not custom built (unless it's a low COL area) or anything you'd see on MTV Cribs, either. The same is true in reverse, to see someone making $50K per year and living in a $500K house, I would assume that person isn't very frugal unless perhaps they saved up and bought the house with mostly cash, but if they put 20% down I'd be seriously concerned how they're affording a $400K mortgage on their modest income.

If you're frugal by nature, I think you have a tendency to feel annoyed by paying anything more than you have to pay for good or services, so even if you have so much money it doesn't matter, it's just the principle of the economics that bothers you. For instance, I know I can rent any movie on iTunes for $5.99 at most, sometimes as low as 99 cents, so if a movie costs $20, I know economically to justify the purchase I need to see this movie at least 4 times over the course of my life (and more likely the next 10 years) to justify buying it. That's why I rarely buy a movie for $20, because it doesn't make much sense to me versus just renting when I feel like seeing it again. I will wait until movies hit $10-15 because then it starts to make more sense, especially if there are parts of that movie I find valuable (as a filmmaker, since sometimes movies have useful scenes I want to reference or a structure I want to research).

If frugality starts interfering with quality of life when you have enough money that it shouldn't, that's called being cheap. In other words, you go to a restaurant to enjoy a nice meal out presumably, and because it all seems like a waste of money (even though you're worth $10M), you order a boring salad not for dietary reasons but because you don't want to pay $15 for an entree. That's just being cheap, not frugal, because your life is being impacted negatively by your bizarre aversion to spending money that you easily have to spend. Whereas frugal in that situation is picking a restaurant you love that doesn't cost as much as some other restaurants you deem of similar quality, and then finding a deal like 2-for-1 entrees with any appetizer, or 20% off on Wednesdays, or something like that, where you are getting a great meal and indeed the same quality of meal as many other people, but paying less for it. THAT is frugal to me, not cheap.
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Old 11-24-2018, 04:48 AM
 
65,697 posts, read 67,058,130 times
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i look at being cheap as when ones own inability to spend intrudes on others and hurts them or makes them uncomfortable living the way they do .

a co-worker subjects his wife to the intense summer heat and never owned an air conditioner just so he does not have to pay to run it ,yet he can well afford to .
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Old 11-24-2018, 07:03 AM
 
561 posts, read 148,127 times
Reputation: 1258
Quote:
Originally Posted by mathjak107 View Post
I look at being cheap as when one's own inability to spend intrudes on others and hurts them or makes them uncomfortable living the way they do .
My grandparents were survivors of the Great Depression. It showed in many ways, but what I remember in particular was that my Grandma wanted to replace the ancient linoleum on the floor in her tiny kitchen. Grandpa said no- what was on their was just fine. Grandma had inherited a little money from her parents and kept it in her name and my Aunt took her to the store (Grandma didn't drive) to pick out a new floor.

Grandpa remarried after Grandma died and his second wife lived like a queen. Whatever she wanted, she got.
I guess Grandpa figured at that point that you can't take it with you.
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