Secrets of rich people

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Think of your family -- your children and grandchildren, and the sacrifices your parents and grandparents made to get you where you are. What some would call "privilege" (such a silly term) is most often the result of previous generations of a family thinking about future generations of the family. I spend over $70k per year on private schools for my two children, max out my investments, but drive an old Toyota. I'd prefer to leave more for my children and grandchildren (and to teach them to do the same, as my father taught me) than to impress you with a Jaguar or Rolex.

Well let me see. My parents did make a good life for me but there was/is no wealth to pass on because their parents who worked hard and did their best did not inherit any wealth because their parents were sharecroppers who didn't inherit any wealth because their parents were slaves and their parents were slaves and their parents were slaves....

The whole narrative of this thread is innately classist/racist. Thank you for pointing this out.

In that vein, my great-grandparents were immigrant factory workers, my grandparents made nice middle-class lives (teachers, secretaries), and my parents and their siblings were the first generation to earn advanced degrees. Enough to make a nice income, but no inherited wealth. It does make a difference.

Yes, but now you will leave something to your kids, and then they leave more to their kids, etc., as opposed to spending it on a Jaguar or Rolex to impress the neighbors, etc. That is how wealth is built, over generations. Sure, some do it in a single generation -- Jobs, Bezos, Carnegie before them -- but for most it is based on sacrificing for yourself to benefit (and teach) future generations of your family. Then you'll just have to ignore some pitiable fool who calls the result of your multi-generational saving and sacrifice "privilege".

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Think of your family -- your children and grandchildren, and the sacrifices your parents and grandparents made to get you where you are. What some would call "privilege" (such a silly term) is most often the result of previous generations of a family thinking about future generations of the family. I spend over $70k per year on private schools for my two children, max out my investments, but drive an old Toyota. I'd prefer to leave more for my children and grandchildren (and to teach them to do the same, as my father taught me) than to impress you with a Jaguar or Rolex.

You are wasting your money on private schools, others prefer to waste it on nice cars. At the end, you are still spending money.
There are no evidences that children who go to private schools finish better that children who don't.
Rich kids who went to private schools would have been rich anyway through inheritance.
Private school is mostly a luxury. It is a way for rich folks to avoid mingling with poor people.

PP doesn't even hear herself. P"rivilege, such a silly word. My children earned their 70k a year tuition and inheritance ..they were born into my family. Mwuuhahahha."
.

Sweetie, I hear myself perfectly well. My children get the benefit of generations of work and sacrifice. My family earned that tuition, and it is available to my children because we did not foolishly throw it away on items to impress others. My children are part of that family. If yours has not advanced much out of poverty, then look there for the blame, but also look to at least being the first generation to begin advancing the family's interests. Every family started somewhere; all of our ancestors lived in dirt huts at some point.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Think of your family -- your children and grandchildren, and the sacrifices your parents and grandparents made to get you where you are. What some would call "privilege" (such a silly term) is most often the result of previous generations of a family thinking about future generations of the family. I spend over $70k per year on private schools for my two children, max out my investments, but drive an old Toyota. I'd prefer to leave more for my children and grandchildren (and to teach them to do the same, as my father taught me) than to impress you with a Jaguar or Rolex.

But maybe it’s not to impress you? Maybe some people just really like fill in the blank and appreciate the quality!?! A lot of these posts come across if you like nice things and quality you’re not doing it right.

No, that was not my intention. The key, in my view, is to only splurge on luxury items that hold real value, instead of luxurious consumer items that generally do not. When you begin to see a solid investment portfolio (and not a Birkin bag) as a "nice thing", then you're well on your way.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Think of your family -- your children and grandchildren, and the sacrifices your parents and grandparents made to get you where you are. What some would call "privilege" (such a silly term) is most often the result of previous generations of a family thinking about future generations of the family. I spend over $70k per year on private schools for my two children, max out my investments, but drive an old Toyota. I'd prefer to leave more for my children and grandchildren (and to teach them to do the same, as my father taught me) than to impress you with a Jaguar or Rolex.

Well let me see. My parents did make a good life for me but there was/is no wealth to pass on because their parents who worked hard and did their best did not inherit any wealth because their parents were sharecroppers who didn't inherit any wealth because their parents were slaves and their parents were slaves and their parents were slaves....

So from slaves to sharecroppers to a good life for you. PP, you're making my point for me. Every family starts somewhere; the key is for each generation to push the next generation to do even better.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Think of your family -- your children and grandchildren, and the sacrifices your parents and grandparents made to get you where you are. What some would call "privilege" (such a silly term) is most often the result of previous generations of a family thinking about future generations of the family. I spend over $70k per year on private schools for my two children, max out my investments, but drive an old Toyota. I'd prefer to leave more for my children and grandchildren (and to teach them to do the same, as my father taught me) than to impress you with a Jaguar or Rolex.

You are wasting your money on private schools, others prefer to waste it on nice cars. At the end, you are still spending money.
There are no evidences that children who go to private schools finish better that children who don't.
Rich kids who went to private schools would have been rich anyway through inheritance.
Private school is mostly a luxury. It is a way for rich folks to avoid mingling with poor people.

PP doesn't even hear herself. P"rivilege, such a silly word. My children earned their 70k a year tuition and inheritance ..they were born into my family. Mwuuhahahha."
.

Sweetie, I hear myself perfectly well. My children get the benefit of generations of work and sacrifice. My family earned that tuition, and it is available to my children because we did not foolishly throw it away on items to impress others. My children are part of that family. If yours has not advanced much out of poverty, then look there for the blame, but also look to at least being the first generation to begin advancing the family's interests. Every family started somewhere; all of our ancestors lived in dirt huts at some point.

Pp, while you are right regarding a lot of families, there are many families in which someone works hard for their fortune and his unwise heirs squander it completely and bring it all to nothing. Beware.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:NP here: yes, I so know someone like this. Lived lavishly and then an ms diagnosis changed everything.

If I received an MS diagnosis I’d be even more upset I spent my best years living like a poor person!

Same. There is space between living like a pauper and spending every dime you have. You can live well and save, too. I certainly do.

Ha ha. Shopping at thrift stores does not mean you’re living like a pauper.

+100 I live in mclean and occasionally drop by nearby thrift stores for some beautiful designer dresses! Going soon for my summer stock. It's not every time I find great stuff but check out occasionally.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Think of your family -- your children and grandchildren, and the sacrifices your parents and grandparents made to get you where you are. What some would call "privilege" (such a silly term) is most often the result of previous generations of a family thinking about future generations of the family. I spend over $70k per year on private schools for my two children, max out my investments, but drive an old Toyota. I'd prefer to leave more for my children and grandchildren (and to teach them to do the same, as my father taught me) than to impress you with a Jaguar or Rolex.

You are wasting your money on private schools, others prefer to waste it on nice cars. At the end, you are still spending money.
There are no evidences that children who go to private schools finish better that children who don't.
Rich kids who went to private schools would have been rich anyway through inheritance.
Private school is mostly a luxury. It is a way for rich folks to avoid mingling with poor people.

PP doesn't even hear herself. P"rivilege, such a silly word. My children earned their 70k a year tuition and inheritance ..they were born into my family. Mwuuhahahha."
.

Sweetie, I hear myself perfectly well. My children get the benefit of generations of work and sacrifice. My family earned that tuition, and it is available to my children because we did not foolishly throw it away on items to impress others. My children are part of that family. If yours has not advanced much out of poverty, then look there for the blame, but also look to at least being the first generation to begin advancing the family's interests. Every family started somewhere; all of our ancestors lived in dirt huts at some point.

Pp, while you are right regarding a lot of families, there are many families in which someone works hard for their fortune and his unwise heirs squander it completely and bring it all to nothing. Beware.

Yep. I'm the PP who mentioned "The Millionaire Next Door." Look up "economic outpatient care."

[Anonymous]

Getting your company to pay for everything. Phone, laptop, car, etc. It seems the more successful you are, the less you pay for things.

[Anonymous]

Anonymous wrote:Getting your company to pay for everything. Phone, laptop, car, etc. It seems the more successful you are, the less you pay for things.

Unless you work at a cheap firm. They don’t even pay for any of that for the partners.

[Anonymous]

Both spouses work in well paying (although not absurdly high paying) jobs

Our HHI has been around 500K for the last 5 years or so

(I am 33 - both lawyers although neither of us work in big law anymore)

Ah, the legendary DCUM humble brag combined with an oh-so-endearing disconnect from reality.

So, what you're saying is that 500K HHI is not "absurdly high paying"? Assuming you and your spouse are earning at the same level, that's $250K in income per person. For the majority of people who live in the DC region, $250K is borderline "absurdly" high paying for the DC area.

Unless absurdly high pay for rich DCUM people is in the $1M ballpark. If that's the case, my mid $100s salary makes me low income.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:What do you consider "rich"?

-Moved to a lower cost of living area than DC (but still a city - think Denver, Austin, Raleigh, Portland, Seattle) but kept the same income and actually made more. I realize not an option for everyone depending on your field.

Seattle is now more expensive than DC, I think!

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Think of your family -- your children and grandchildren, and the sacrifices your parents and grandparents made to get you where you are. What some would call "privilege" (such a silly term) is most often the result of previous generations of a family thinking about future generations of the family. I spend over $70k per year on private schools for my two children, max out my investments, but drive an old Toyota. I'd prefer to leave more for my children and grandchildren (and to teach them to do the same, as my father taught me) than to impress you with a Jaguar or Rolex.

Well let me see. My parents did make a good life for me but there was/is no wealth to pass on because their parents who worked hard and did their best did not inherit any wealth because their parents were sharecroppers who didn't inherit any wealth because their parents were slaves and their parents were slaves and their parents were slaves....

So from slaves to sharecroppers to a good life for you. PP, you're making my point for me. Every family starts somewhere; the key is for each generation to push the next generation to do even better.

Whoosh.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Think of your family -- your children and grandchildren, and the sacrifices your parents and grandparents made to get you where you are. What some would call "privilege" (such a silly term) is most often the result of previous generations of a family thinking about future generations of the family. I spend over $70k per year on private schools for my two children, max out my investments, but drive an old Toyota. I'd prefer to leave more for my children and grandchildren (and to teach them to do the same, as my father taught me) than to impress you with a Jaguar or Rolex.

You are wasting your money on private schools, others prefer to waste it on nice cars. At the end, you are still spending money.
There are no evidences that children who go to private schools finish better that children who don't.
Rich kids who went to private schools would have been rich anyway through inheritance.
Private school is mostly a luxury. It is a way for rich folks to avoid mingling with poor people.

PP doesn't even hear herself. P"rivilege, such a silly word. My children earned their 70k a year tuition and inheritance ..they were born into my family. Mwuuhahahha."
.

Sweetie, I hear myself perfectly well. My children get the benefit of generations of work and sacrifice. My family earned that tuition, and it is available to my children because we did not foolishly throw it away on items to impress others. My children are part of that family. If yours has not advanced much out of poverty, then look there for the blame, but also look to at least being the first generation to begin advancing the family's interests. Every family started somewhere; all of our ancestors lived in dirt huts at some point.

So at some point we decided that inherited wealth was a pretty poor way to set up a society and we left the feudal system behind. Do you think we should as a society celebrate inherited wealth?

Let’s say “not-privileged” PP above and slave descendant above both have kids that attend a top tier graduate program in some lucrative field. Let’s further assume that both families have similar HHi and take home pay. Can you explain why one of these kids is not privileged over the other despite both of them being set up for long term success?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:NP here: yes, I so know someone like this. Lived lavishly and then an ms diagnosis changed everything.

If I received an MS diagnosis I’d be even more upset I spent my best years living like a poor person!

Same. There is space between living like a pauper and spending every dime you have. You can live well and save, too. I certainly do.

Ha ha. Shopping at thrift stores does not mean you’re living like a pauper.

+100 I live in mclean and occasionally drop by nearby thrift stores for some beautiful designer dresses! Going soon for my summer stock. It's not every time I find great stuff but check out occasionally.

Which stores??

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Think of your family -- your children and grandchildren, and the sacrifices your parents and grandparents made to get you where you are. What some would call "privilege" (such a silly term) is most often the result of previous generations of a family thinking about future generations of the family. I spend over $70k per year on private schools for my two children, max out my investments, but drive an old Toyota. I'd prefer to leave more for my children and grandchildren (and to teach them to do the same, as my father taught me) than to impress you with a Jaguar or Rolex.

Well let me see. My parents did make a good life for me but there was/is no wealth to pass on because their parents who worked hard and did their best did not inherit any wealth because their parents were sharecroppers who didn't inherit any wealth because their parents were slaves and their parents were slaves and their parents were slaves....

The whole narrative of this thread is innately classist/racist. Thank you for pointing this out.

In that vein, my great-grandparents were immigrant factory workers, my grandparents made nice middle-class lives (teachers, secretaries), and my parents and their siblings were the first generation to earn advanced degrees. Enough to make a nice income, but no inherited wealth. It does make a difference.

Yes, but now you will leave something to your kids, and then they leave more to their kids, etc., as opposed to spending it on a Jaguar or Rolex to impress the neighbors, etc. That is how wealth is built, over generations. Sure, some do it in a single generation -- Jobs, Bezos, Carnegie before them -- but for most it is based on sacrificing for yourself to benefit (and teach) future generations of your family. Then you'll just have to ignore some pitiable fool who calls the result of your multi-generational saving and sacrifice "privilege".

What the heck do you think "privilege" actually is? It's getting something better than other people for reasons other than your own merit/hard work/etc. Are you claiming that kids somehow "earn" or "deserve" or get to pick having richer or poorer parents when they're born? If not, that's the very definition of privilege. Some people start out with less advantages and resources than others through no fault of their own, others start out with more through no merit of their own.