Reply to Upper and UMC Ppl: Do you Actually Know Anyone Living Beyond their Means?

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Reply to "Upper and UMC Ppl: Do you Actually Know Anyone Living Beyond their Means?"

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[quote=Anonymous]
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I agree with this.  It's not very common that people making $300k+ are going into the red every month, but it's very surprising how many people at that level are only saving 10% or less of their income.  If you make $100k, when you imagine making $300k you picture a nicer lifestyle and a very good nest egg in the bank to give you financial security and possibly enable early retirement.  Then you see people making $300k and what they actually have is a similar 401k balance to the $100k person, a nicer car and a house 2 neighborhoods over with an additional bedroom.  They're not on the verge of bankruptcy but they're also not a single step closer to financial independence or actual wealth, and that's the part that feels wasteful.[/quote]

+1.  You also see people with golden handcuffs--they make a great living, but they set their spending at that level.  Not only are they not saving more, they are locked into mortgages and car payments and private school tuition that make downsizing really daunting.  So, not beyond their means, but right up against them.

Also, I grew up in the construction industry, and there were a lot of developers who were making big money who were absolutely one bad deal away from bankruptcy.  One of the people my family worked with had a huge custom house, expensive cars, horses, travel, etc....when he died (suddenly) it turned out that his estate was nearly worthless because of the amount of debt he was carrying.  Not uncommon at all in that field.

And we have one good friend from really old money who lives off of a trust fund (big enough to pay for multiple homes, lots of travel, etc.)...her brother, with the same amount in trust, ended up flat broke because of his spending.  So it's not just "new money" at risk of losing it all.  [/quote]

What you've described sounds like a lot of people on DCUM![/quote]

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