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Old 04-07-2016, 03:04 PM
 
26,147 posts, read 21,372,757 times
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Quote:
Originally Posted by Garthur View Post
One of the traits of rich people is not putting resources into any asset that loses money. All of the truly rich people I know drive older Chevy's, and pickup trucks. Another trait of rich people is to not attract attention by wearing expensive watches or jewelry.

Well you don't know all the rich people then because plenty of rich or high net worth folks buy expensive cars, jewelry etc
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Old 04-07-2016, 03:04 PM
 
Location: New York
1,098 posts, read 1,239,190 times
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Quote:
Originally Posted by Garthur View Post
One of the traits of rich people is not putting resources into any asset that loses money. All of the truly rich people I know drive older Chevy's, and pickup trucks. Another trait of rich people is to not attract attention by wearing expensive watches or jewelry.
Tom Stanley would be proud...RIP.
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Old 04-07-2016, 03:13 PM
 
Location: Raleigh-Durham NC
902 posts, read 1,093,058 times
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Quote:
Originally Posted by Garthur View Post
One of the traits of rich people is not putting resources into any asset that loses money. All of the truly rich people I know drive older Chevy's, and pickup trucks. Another trait of rich people is to not attract attention by wearing expensive watches or jewelry.
then who is buying expensive cars and Rolex watches? poor people?
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Old 04-07-2016, 03:16 PM
 
Location: Nebraska
2,234 posts, read 3,297,515 times
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Quote:
Originally Posted by AfternoonCoffee View Post
Well that's simply not true.

Not ALL people with "real high net worth" buy expensive cars, but certainly SOME of them do.

How does one justify their "feeling of worth" anyway?
I didn't want to write a 3 paragraph explanation of that included sub sets of demographics.

Another issue is that some people have a warped sense of rich. Rich does not mean that they live in a expensive house and drive expensive cars. It means that they have financial power to do what they want whenever they want and have the resources to do it without going into debt. Real money is power, not buying expensive things.

My wife worked at a bank and found that the people she thought were rich were just putting up a façade. Borrowed money for a expensive car and lived in mini mansions but they actually had no money and were living week to week. The and interesting thing happened when she found out that all the people that had large sums of money all lived comfortably but not in expensive houses or drove expensive cars. It was a real eye opener for her.

There is also a book "The Millionaire Next Door" that was published about 20 years ago that discovered the same thing.

The biggest live lesson I have ever learned is that things are never as they appear you need to dig deeper.
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Old 04-07-2016, 03:16 PM
 
2,169 posts, read 1,929,457 times
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Quote:
Originally Posted by Lowexpectations View Post
Well you don't know all the rich people then because plenty of rich or high net worth folks buy expensive cars, jewelry etc

I know plenty of "rich" people who make very good salaries but they blow allll their money and have almost nothing to show for it. Expensive cars, jewelry, homes, sure.. but at the end of the day its not making them any happier than the guy down the street shopping at target and living in the $400k home instead of the $1.4 mil home.

I'd rather make $75k a year and have a bunch of passive investments bringing in another $75k then just have a job that's paying me $200k.. I'd be married to that job, if I lost that job I'd be SOL, I could lose everything. If I have $75k in passive income I really never have to worry, that to me is being rich.

I don't want money so I can buy more things, I want money so I know my family will never have to struggle, so that I'll never be in a situation I can't walk away from, so that I can retire early and be able to spend time with the people I care about most. For those reasons you wont see me in luxury items or over spending until I've reached the point where my investments can pay for all those luxury items on their own.
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Old 04-07-2016, 03:32 PM
 
26,147 posts, read 21,372,757 times
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Quote:
Originally Posted by ericp501 View Post
I know plenty of "rich" people who make very good salaries but they blow allll their money and have almost nothing to show for it. Expensive cars, jewelry, homes, sure.. but at the end of the day its not making them any happier than the guy down the street shopping at target and living in the $400k home instead of the $1.4 mil home.

I'd rather make $75k a year and have a bunch of passive investments bringing in another $75k then just have a job that's paying me $200k.. I'd be married to that job, if I lost that job I'd be SOL, I could lose everything. If I have $75k in passive income I really never have to worry, that to me is being rich.

I don't want money so I can buy more things, I want money so I know my family will never have to struggle, so that I'll never be in a situation I can't walk away from, so that I can retire early and be able to spend time with the people I care about most. For those reasons you wont see me in luxury items or over spending until I've reached the point where my investments can pay for all those luxury items on their own.


I wasn't really asking what you'd rather have. Plenty of rich or wealthy people buy expensive things
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Old 04-07-2016, 03:36 PM
 
1,115 posts, read 1,456,777 times
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Originally Posted by hawaiishrimp View Post
In your opinion, how much net worth to afford a BMW M2 comfortably?
With your net worth I say go for it.
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Old 04-07-2016, 03:39 PM
 
2,813 posts, read 2,098,668 times
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Quote:
Originally Posted by Garthur View Post
I didn't want to write a 3 paragraph explanation of that included sub sets of demographics.

Another issue is that some people have a warped sense of rich. Rich does not mean that they live in a expensive house and drive expensive cars. It means that they have financial power to do what they want whenever they want and have the resources to do it without going into debt. Real money is power, not buying expensive things.

My wife worked at a bank and found that the people she thought were rich were just putting up a façade. Borrowed money for a expensive car and lived in mini mansions but they actually had no money and were living week to week. The and interesting thing happened when she found out that all the people that had large sums of money all lived comfortably but not in expensive houses or drove expensive cars. It was a real eye opener for her.

There is also a book "The Millionaire Next Door" that was published about 20 years ago that discovered the same thing.

The biggest live lesson I have ever learned is that things are never as they appear you need to dig deeper.
I agree with the bolded. However, that has nothing to do with your earlier statement that "real high net worth people don't buy expensive cars"

Sure they do. They just don't go into debt or financial hardship to get them. And, true, they probably didn't get to be a "high net worth" person through frivolous purchasing. But most people splurge here and there, and if a "rich" person wants to pay cash for a fancy car they've always wanted, they do it.

Actually, read how the late Thomas Stanley, author of "The Millionaire Next Door" does not too long ago...
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Old 04-07-2016, 03:55 PM
 
Location: Moku Nui, Hawaii
11,048 posts, read 23,868,943 times
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Quote:
Originally Posted by hawaiishrimp View Post
In your opinion, how much net worth to afford a BMW M2 comfortably?
I don't see what net worth has to do with it. If you really want a BMW M2 (whatever that is, some sort of fancy car, I suppose), then to be 'affordable' about the whole thing, buy a used one with cash. Drive it until you get your yayas out and then sell it for about the same price you bought it for.

Why do you want one?
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Old 04-07-2016, 03:57 PM
 
1,218 posts, read 3,434,598 times
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I plan on financing a pretty expensive car in the future (corvette or something). I will put a large down payment (30-50%) and be able to comfortably make payments, still pay my other bills, and save for my retirement. I enjoy cars and I bet our overreaching government will try to ban them once autonomous crap is finally safe for roads. Maybe by the time I am 50 with enough money to buy a Ferrari in cash I won't be able to. I say get the M2 I actually looked at them too but want something more "exotic" looking. I might still test drive one though, I hear it is an awesome car
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