Quote:
Originally Posted by Gerbs
I noticed a lot of high income earners don't get good value with their purchase.
They'll go to whistler but pay like $600 - 1,000/night for accommodation, pay $2,200-3,500 for fancier daycare before incentives, $2,000/mo for eating out daily, $250-350/mo insurance per car with high deductibles.
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My partner and I were talking about this the one day. We have friends, professional higher-income (probably $400-450K/each in billings) DINKs. We were chatting one evening and they told us their monthly CC bill is $15-20K, which their income can support... but later that night we were trying to figure out where that all went?
Both drive non-luxury albeit new cars (Accord and CR-V). Their house was probably $1.5-1.8M when they bought it, pre-COVID, and their mortgage isn't on their CC anyways. They don't take a ridiculous number of vacations. They aren't kitted out in lux/designer clothing/products.
Then we went on a weekend trip with them and it clicked. They paid $40 for 6 butter tarts at a "cute" bakery on the tourist strip. For the hotel, they just called up the Marriott and took whatever rate offered on the phone. Rental car: they paid for the upgrade to an SUV without taking advantages of discounts or free upgrades for joining the loyalty program. Didn't think twice about parking for the day in the most convenient lot for $48 instead of parking 1-2 blocks away. While we were there, they talked about buying tickets to a concert that were resales via StubHub for $$$ markup.
It's fine, we don't judge them for it - they can afford it, and maybe the convenience is worth it more than the $$$ saved. But it suddenly made sense where all the money was going.