21 Ways Rich People Think Differently Than Average People

[DaveM]

Even if I had a million a year income I wouldnt have a maid or a chauffeur. Though I would probably have a cleaning lady come in every week as I hate the weekly cleaning

In the same token I would be living on about 100 acres in regional NSW or VIC in a comfortable house with some horses and dogs and enjoying life, I have little interest in material goods for the sake of perceived social status.

 

[weg]

I rarely watch TV in the traditional sense, but we transfer all of our downloads to the TV so we can watch shows ad-free on the bigger screen whilst sprawled across the sofa with a bunch of cats on top of us. You can't do that with a laptop.

I think that's what most people do - either via a usb or portable hard drive.

Difficult to all live steam when you are more than a single person, although the comment that china originally made about having no tv was to do with his frugality.

TV's are are the price of one good restaurant meal in china's world.

 

[nhg]

I think that's what most people do - either via a usb or portable hard drive.

Difficult to all live steam when you are more than a single person, although the comment that china originally made about having no tv was to do with his frugality.

TV's are are the price of one good restaurant meal in china's world.

He's frugal?

Now his dream lifestyle makes no sense, where is the balance? He must live in perpetual hell right now.

 

[nhg]

Even if I had a million a year income I wouldnt have a maid or a chauffeur. Though I would probably have a cleaning lady come in every week as I hate the weekly cleaning

In the same token I would be living on about 100 acres in regional NSW or VIC in a comfortable house with some horses and dogs and enjoying life, I have little interest in material goods for the sake of perceived social status.

I know few people with ACTUAL net wealth that care what others think. Granted there is a correlation between the two.

I have a very casual demeanor with the way I dress most days (though pretty shmick when I go out), and I doubt that will change when I have plenty more cash to blow. I travel a lot and never understand why people are dressed up to go on an international flight. Wearing a belt and tight shirt is not very comfortable on a 15 hrs flight.

You may even spot me one day, I'm the guy wearing PJs with sharks on them at the petrol station. You'll know I'm on another long drive

 

[Mr. Fabulous]

never understand why people are dressed up to go on an international flight. Wearing a tight shirt is not very comfortable on a 15 hrs flight.

Depends on the gender of said shirt wearer, mate . Although these days, with the whole fat acceptance thing going on (which I personally never have and never will accept), still a bit of a risk :/.

 

[Tony3008]

I have a very casual demeanor with the way I dress most days (though pretty shmick when I go out), and I doubt that will change when I have plenty more cash to blow. I travel a lot and never understand why people are dressed up to go on an international flight. Wearing a belt and tight shirt is not very comfortable on a 15 hrs flight.

I used to wear smart trousers, shirt, tie and jacket in the hope of swinging an upgrade (once or twice it worked) but now go for cargo pants with big zip pockets, shirt and cardigan (three heat settings depending on the cabin temp: off, on or zipped). Have never mastered sleeping on a plane though - which is a pity since I go back to the UK once a year.

 

[china]

I think the underlined portion was possibly the bit that doesn't quite make sense.

China is saying that "one year" he made an income of $1M in that year. Why for just one year? What earned him "income" of $1M and why for just one year?

Income from my small business varies from year to year.

 

[china]

Hiya China

perchance are you from Hongkong? because that will explain a lot of things

tell me more about why this is

 

[china]

I think I could manage to de-prioritise up to say; a 3 year old vw golf or something spiffy like that....not too expensive.

I mean; delayed gratification is one thing, but to earn a million and not even drive a half decent car is a bit extreme.

I think he even said he doesn't have a tv?

It's all a bit silly, really.

I have mentioned before that I am saving for freedom from work. This needs 2 to 2.5m. I tend to watch most things via the internet on my one year old laptop. My 2003 corolla is still quite reliable but once it starts to jack up then I will probably upgrade to a new corolla.

 

[VYBerlinaV8]

tell me more about why this is

Face.

 

[sash]

Let put things in perspective, here are some interesting stats:

1. About 1700 people in Australia have a net worth of more than $30 million
2. About 196k people in Australia have at least $1m in assets outside of their home.
3 If you earn more than $180k (to marginal rate) you are among the top 0.8% ( that is about 186k people)
4. The average wealth of a high wealth networth is about $3m
5. Most high net wealth individuals are over 50 year of age.
6. If you have retirement income of over 50k you are in the top 5% of retirees
7. 80% of retirees have less than $150 in super.

Given this...I would doubt there would be very many people out there on $1m salaries. I good indication is the number of people who have over $2m in super...that would given an indication the number of people in Australia who would have declared an income of more than say 700k.

 

[Aouta]

Let put things in perspective, here are some interesting stats:

1. About 1700 people in Australia have a net worth of more than $30 million
2. About 196k people in Australia have at least $1m in assets outside of their home.
3 If you earn more than $180k (to marginal rate) you are among the top 0.8% ( that is about 186k people)
4. The average wealth of a high wealth networth is about $3m
5. Most high net wealth individuals are over 50 year of age.
6. If you have retirement income of over 50k you are in the top 5% of retirees
7. 80% of retirees have less than $150 in super.

Given this...I would doubt there would be very many people out there on $1m salaries. I good indication is the number of people who have over $2m in super...that would given an indication the number of people in Australia who would have declared an income of more than say 700k.

Source for these stats?

 

[Aouta]

. My 2003 corolla is still quite reliable but once it starts to jack up then I will probably upgrade to a new corolla.

Can I ask if you're such a high income earner why don't you buy something flashier? I see a alot of high income/networth individuals comfortable driving 10 yr old mazdas whilst you get people on sub 100k incomes driving fast cars to show off. Is there an insecurity issue with these people?

 

[Aaron_C]

I have mentioned before that I am saving for freedom from work. This needs 2 to 2.5m. I tend to watch most things via the internet on my one year old laptop. My 2003 corolla is still quite reliable but once it starts to jack up then I will probably upgrade to a new corolla.

And once you reach $2-2.5m you will continue doing the same thing rendering your retirement pretty much redundant.

 

[china]

And once you reach $2-2.5m you will continue doing the same thing rendering your retirement pretty much redundant.

The lifestyle will not change too much but there will be a mental freedom that comes with feeling that I do not need to work for financial reasons.

 

[china]

Given this...I would doubt there would be very many people out there on $1m salaries. I good indication is the number of people who have over $2m in super...that would given an indication the number of people in Australia who would have declared an income of more than say 700k.

1m salaries may apply to a few (CEOs / investment bankers) but 1m income from small business would be far more common. Super is not reliable indicator - a lot of self employed people have very low super balances but high net worth.

 

[pursefattener]

I agree China . A number of business people I know don't have much in super and prefer to grow their business and investment assets otherwise .

I fit that categorie myself . This year I have purchased two more lots and looking to add more .

With the economy slowing right down in my area opportunities are really coming up now ..

 

[china]

I think relevant to this thread is:

Average people depend on employer contributions to super. Rich people often invest outside of super.

 

[Aaron_C]

The lifestyle will not change too much but there will be a mental freedom that comes with feeling that I do not need to work for financial reasons.

Why not just sell your business then? That will bring you to that mark easily.

I think if you retire you should enjoy it, particularly if you are single like yourself. However, you've done well thus far so I am not going to tell you how to spend your own money.

 

[Rolf Latham]

I think relevant to this thread is:

Average people depend on employer contributions to super.

And therein lies part of the problem.

I dont have the time to do the research, but for those PRO UNION folk, maybe they will have the time to do the research dump my assertion.

I recall that when SGC was brought in, it was to top out at 9 % ? EMPLOYER contribution PLUS the EMPLOYEE over time was to place 9 % of their income into the same complying fund ?

I could be very wrong, but I recall various Union movements didnt like it too much,and successive govs on BOTH sides have been way to distracted with other stuff than worry about "average" people being financially self sufficient in retirement

ta
rolf