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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]Many rich people are surprisingly frugal.  They don't just waste money because they have it.  
They actively make decisions of what to spend their money on. [/quote]

This.  Borrow “The Millionaire Next Door” from your local library.   Most popular car for millionaires in the US is a Ford F-150, not Lexus, not Mercedes, not BMW, not Jaguar, not Land Rover, …. Admittedly, that F-150 probably is at one of the higher trim levels, but still this fact surprises many people.

One’s spend rate often is visible, but many people’s actual wealth/net worth often is not so visible.  Often, someone with a low/lower spend rate has more wealth than one might guess from looking at that spend rate.[/quote]

But also, any F-150 costs at least $50K, and most of them aren't being driven by ranchers or contractors.

People find ways to spend more money than is absolutely &quot;necessary,&quot; which means everyone wastes money, assuming that by &quot;waste money&quot; you mean &quot;buys something other than the least-expensive option for survival. [/quote]

But they could easily be spending $80K+ for a luxury vehicle.  So while yes, they could be totting around in a Toyota Yaris (if they still make it---or the equivalent tiny, barely a large lawn mower engine car) and still get from point A to B.  Point is they only spend $50K for a car when many spend a lot more.  
Finances is all about choice, even if you are a millionaire.  But it's also largely about choosing to save.  If you save a decent portion, then you get to decide how to allocate the remainder.  For some it's flying first class, for some it's luxury hotels, for others it cars or high end dining.  You spend on what gives you the most pleasure, but all within the realm of a &quot;budget&quot; even as a multi-millionaire. 
[/quote]

And not to harp on this, but it's pretty easy to spend &gt;$80K on an F-150, which at its lowest is still more expensive than the least-expensive BMW, Lexus, or Mercedes.

I don't mean this as a discussion about cars per se. I mean this as a way of saying that a lot of people are sure other people are spending too much on X when they don't actually know what X costs, and they propose Y as an alternative when Y is actually more expensive and possibly not well-suited to someone's actual need. They just like the vehicle or the vacation or the remodel, and then they justify it as a financially sensible choice. [/quote]

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