Why is it scarier to spend money when you have it, then when you dont?

Discussion in 'Economics' started by peilthetraveler, May 25, 2009.

  1. This is what i notice...broke people love to spend money and put everything on their credit cards. By broke i mean people living paycheck to paycheck. Now I have 10s of thousands just in my savings, and im scared to make any luxury purchase over 300 dollars. I mean i really have to think about it for a long time before i decide. For instance...i've been wanting a new computer for a some time. It would only run me about what...700 dollars? I can afford it, but I would feel like i just threw that money away.

    Anyone else with a decent savings in the bank do the same thing?

    Maybe chris rock was right....rich people save their money so they can be rich. Poor people spend their money so they can LOOK rich.
  2. the1


    When you get to the point where you are rich, or even well off, your biggest fear is becoming poor again. Some rich people are the tightest people I know but I know other rich people who can't spend enough, fast enough.
  3. There's a book titled 'The Millionaire Next Door.'

    It was written by two financial planners who have years and years of experience.

    They basically said a nearly universal trait among the truly wealthy was that they were the cheapest people you could possibly imagine.

    They held seminars to promote their tax planning and financial consulting business, and they eventually learned that in the wealthiest part of Manhattan, the best way to get these people to attend was to offer free danish and coffee, and pass out trinkets.

    Many people with a net worth of greater than 10 million (and more) would show up in old clothing, and many took the subway or walked.

    The average millionaire either did not own a car, or if they did, it tended to be a domestic model, at least 8 years old, with close to 100,000 miles on it. Repair and not replace was the rule.

    When leaving, many of the participants took extra danish wrapped in napkins and stuck pens and notepads in their bags or under their coats.
  4. bespoke


    It's easy to spend money you didn't earn.
  5. Wow...thats really interesting. Those millionaires sound exactly like me...only difference is i dont have a million yet, let alone millions. But that gives me hope that maybe since im thinking like them, I might have 10 million dollars one day. I just hope its not cause of hyperinflation! I wonder if they leave stuff out when they calculate their net worth like i do. Like I dont count my house or car or any other possessions as assets. I only count cash and stocks as my assets.
  6. aegis


    I've heard that the average millionaire drives a Ford F-150 with 100k miles on it. The average millionaire is most likely a contractor or someone who made their money in real estate. These people tend to be pretty frugal.

    I've yet to meet a successful trader who I would consider frugal.
  7. I think you are grossly over generalizing. Your statement is stupid and not true.
  8. soseki


    Because people who live from paycheck to paycheck don't usually use money as a tool. Being payed, it's easier to think of money as just something you're rewarded with and are free to enjoy.

    It becomes harder to spend something you need so badly as an actual tool to make living.

    I guess this is a case?
  9. pspr


    Just look at Obama. Thanks to his book deals, he's a millionare. Now he has moved up to spending Trillions of our dollars on foolish nonsense.
  10. Eight


    Clearly, that might be just the case.

    The book "The Millionaire Next Door" spelled out what self made American millionaires are like, they have no class really, no style. They aren't stupid, they are just sort of artless drones that work and are able to build up a life for themselves.. I'm not sure who's better off, a poor artist or the drones depicted in the book... and the author was not painting a biased picture at all, just citing what he found out factually in some research project... they shop at JC Pennys and drive F-150's... my wife's dad was exactly like that.. what an artless drone [and an overbearing unpleasant son of a bitch to boot].

    I have issues to work out, trading is looking like it should not be that difficult from here on out... I here and now resolve to not be an artless drone or an overbearing son of a bitch [in all honesty my mom was not all that nice much of the time but that's not the point here]. I resolve to have cars that dress up the driveway of a house that dresses up the neighborhood.. well, I'm already doing that with the exception of the F150 we inherited... and I resolve to renew that subscription to GQ and this time to actually go buy some clothes instead of just studying the subject.. and to wear them, no more jeans and tee shirts not tucked in, no more wide, shiny belts, no long socks when I'm wearing shorts, no more worn out, beat up tennis shoes... I can do this shit....
    #10     May 25, 2009