High spenders what do you spend on?

Questions on how we spend our money and our time - consumer goods and services, home and vehicle, leisure and recreational activities
New Providence
Posts: 555
Joined: Fri Mar 27, 2020 7:10 am

Re: High spenders what do you spend on?

Post by New Providence »

alfaspider wrote: Wed Mar 31, 2021 9:50 am
New Providence wrote: Tue Mar 30, 2021 5:36 pm
alfaspider wrote: Mon Mar 29, 2021 3:57 pm
Dottie57 wrote: Mon Mar 29, 2021 3:52 pm
alfaspider wrote: Mon Mar 29, 2021 3:39 pm

Do I want to fly in coach? Of course not. But its' not going to kill me. Obviously, it's more of an issue if you are big/tall. My petite spouse who can sleep sitting up can't figure out why people pay for business class at all. But I can see how it would be a torture session for an NBA player to fit in a coach seat.
Last time I flew, I went first class. Best flying trip ever. I hate squished seats, no leg room. If I can’t go higher class than coach, I don’t want to go.
Not to belabor the point too much, but I find most domestic first class to be a pretty lackluster experience. Call me jaded, but legroom isn't that great (someone still has to get up to let a seatmate out), and the meals are mediocre at best. You can sometimes get more legroom than business in coach if you can snag an exit row or bulkhead seat (in certain airplane configurations). International business is better, but it's still a far cry from a truly luxurious feeling experience. True international first is almost an extinct species except on certain limited routes. Inter-Europe "business" class is a joke- it's coach with the middle seat blocked off and a meal.
Travelers demand that airlines compete on price, not quality. As long as the ticket is cheap, customers will accept the worse flying conditions.

Domestic Biz class is for frequent flyer upgrades, not for paying clients and therefore there's no incentive for airlines to provide quality. We get what we pay for. And when it comes to flying most people want nothing but cheap.
To some extent, it makes sense that few pay for domestic first. For short flights, the experience difference usually isn't worth hundreds of dollars unless hundreds of dollars is nothing to you.
As I said, it is all about paying the cheapest price possible. Quality is irrelevant to most.
bluebolt
Posts: 2137
Joined: Sat Jan 14, 2017 8:01 am

Re: High spenders what do you spend on?

Post by bluebolt »

One thing I don't think I saw mentioned - entertaining. If you host catered/bartended parties at home or at restaurants/venues regularly, you could easily drop five or six figures on that.
User avatar
Random Musings
Posts: 6770
Joined: Thu Feb 22, 2007 3:24 pm
Location: Pennsylvania

Re: High spenders what do you spend on?

Post by Random Musings »

No one is into art/fine collectables?

RM
I figure the odds be fifty-fifty I just might have something to say. FZ
User avatar
beernutz
Posts: 978
Joined: Sun May 31, 2015 12:50 pm

Re: High spenders what do you spend on?

Post by beernutz »

phxjcc wrote: Tue Mar 30, 2021 2:52 pm Get sick.

Medical: $26,000 per year, unreimbursed, mostly for Rx's.

Buy a second/third residence....however, if you do it right your NW will increase more than cash decreases.

Get expensive toys and use them.
Planes are number one
Boats
Race cars
RV's
Golf vacations
Art collections
Car collections

But...medical issues will outspend them all.
A few years ago my wife had brain surgery for an acoustic neuroma. Total cost was over $600k of which we paid less than $5k OOP because she had both primary and secondary insurance. Going through that with poor or no insurance would make a nice dent in most people's net worth.
AA: 40/41/19 - equities/positive return-zero volatility/bonds
lws
Posts: 831
Joined: Tue Apr 25, 2017 6:12 pm

Re: High spenders what do you spend on?

Post by lws »

There are an infinite number of ways to blow money.
If I were trying to spend bigger, I would increase my charitable giving considerably.
rockstar
Posts: 6326
Joined: Mon Feb 03, 2020 5:51 pm

Re: High spenders what do you spend on?

Post by rockstar »

Random Musings wrote: Wed Mar 31, 2021 11:41 am No one is into art/fine collectables?

RM
Too much fraud.
anon3838
Posts: 198
Joined: Fri May 03, 2019 11:54 am

Re: High spenders what do you spend on?

Post by anon3838 »

Tingting1013 wrote: Mon Mar 29, 2021 10:07 am Recently we have seen some posts of folks spending $150-$200k/yr, excluding housing, college tuition and daycare.

If you fit this description, I’m genuinely curious, what are you actually spending your money on?

For reference my HHI is $700-800k, excluding housing and daycare and charity, my spend is only $50k/year.

What am I doing wrong?
I don’t think it’s realistic to exclude housing cost. I fit your description, and housing in my VHCOL is 41% of my yearly spend.
Topic Author
Tingting1013
Posts: 1594
Joined: Mon Aug 24, 2020 5:44 pm

Re: High spenders what do you spend on?

Post by Tingting1013 »

anon3838 wrote: Wed Mar 31, 2021 2:53 pm
Tingting1013 wrote: Mon Mar 29, 2021 10:07 am Recently we have seen some posts of folks spending $150-$200k/yr, excluding housing, college tuition and daycare.

If you fit this description, I’m genuinely curious, what are you actually spending your money on?

For reference my HHI is $700-800k, excluding housing and daycare and charity, my spend is only $50k/year.

What am I doing wrong?
I don’t think it’s realistic to exclude housing cost. I fit your description, and housing in my VHCOL is 41% of my yearly spend.
This is not a budget thread.

This is a “what non-obvious things can I spend money on” thread.
User avatar
praxis
Posts: 646
Joined: Sun Sep 06, 2009 1:51 pm

Re: High spenders what do you spend on?

Post by praxis »

After retirement (16 years ago) we built a cabin in Colorado with surrounding forest land in the mountains and spend four summer months there and some ski time in the winter. That's the only thing I can think of that was high spending for us. We partnered with friends so we have an expensive second home for half price. We get along fine with the other couple. We travel internationally, always coach, but this thread has convinced me to upgrade in the future. Other than those expenses, paying for our son and DIL's grad school was a large expense.
Boglegirl81
Posts: 184
Joined: Fri Nov 25, 2016 8:22 pm

Re: High spenders what do you spend on?

Post by Boglegirl81 »

I don’t think anyone has mentioned this one yet, but I buy “Made in the USA” whenever possible.
shuchong
Posts: 117
Joined: Mon May 05, 2008 7:19 pm

Re: High spenders what do you spend on?

Post by shuchong »

Not a high spender, but surrounded by them.
  • Move to NYC.
    Buy a condo near Central Park.
    Use an interior decorator to outfit it with expensive furniture/rugs/etc.
    Get into art/antiquities/rare books and buy those for your apartment as well.
    Have catered parties at this apartment.
    Hire a nanny or other in-home help.
    Expensive summer camps, music lessons, tutors, etc. for your kids.
    Use black car service/a driver instead of the subway, both for you and to shuttle the kids around to all their extracurriculars.
    Have a weekend house upstate, that this driver also drives you to.
    Get season tickets to the NY Philharmonic, Met Opera, Ballet, sporting events of your choice, etc. Sprinkle that in with tickets to hit Broadway shows for your entire family plus visiting friends.
    Get a dog or two, plus dog walkers or doggie day care for the workweek and kennel fees for whenever you're out of town.
    Speaking of out of town, fly the family to Paris business/first class/privately for weekend trips. Then more exotic locations for longer vacations where you stay at high-end resorts. Use helicopter service to get to/from Manhattan for these flights.
    Buy couture clothing often (bonus points if the weekend trips to Paris are for this purpose), get suits made custom, get the fanciest handbags and watches.
    Eat out at fancy restaurants/drink at fancy bars.
I could easily spend myself into the poorhouse if I lived like that, even on my $500k salary. As it stands though, the only thing on the list that I find truly attractive are the season tickets to the Philharmonic: once they restart I might do that. The real problem is that the unpredictable hours I work for my ridiculous income mean that I can't reliably attend concerts... life is rough.
bluebolt
Posts: 2137
Joined: Sat Jan 14, 2017 8:01 am

Re: High spenders what do you spend on?

Post by bluebolt »

Boglegirl81 wrote: Wed Mar 31, 2021 5:14 pm I don’t think anyone has mentioned this one yet, but I buy “Made in the USA” whenever possible.
There are lots of exotic and expensive things that are not made in the US. E.g. Lamborghinis, Ferraris, European fashion brands, etc. where it may be hard to get an American equivalent.
bluebolt
Posts: 2137
Joined: Sat Jan 14, 2017 8:01 am

Re: High spenders what do you spend on?

Post by bluebolt »

Also, buy a luxury box at a stadium.
Boglegirl81
Posts: 184
Joined: Fri Nov 25, 2016 8:22 pm

Re: High spenders what do you spend on?

Post by Boglegirl81 »

bluebolt wrote: Wed Mar 31, 2021 6:49 pm
Boglegirl81 wrote: Wed Mar 31, 2021 5:14 pm I don’t think anyone has mentioned this one yet, but I buy “Made in the USA” whenever possible.
There are lots of exotic and expensive things that are not made in the US. E.g. Lamborghinis, Ferraris, European fashion brands, etc. where it may be hard to get an American equivalent.
Which is why I said, “whenever possible.” :wink:
H-Town
Posts: 5905
Joined: Sun Feb 26, 2017 1:08 pm

Re: High spenders what do you spend on?

Post by H-Town »

Random Musings wrote: Wed Mar 31, 2021 11:41 am No one is into art/fine collectables?

RM
That'd require me to understand art or fine collectables. Well.. I don't.
Time is the ultimate currency.
User avatar
JonnyDVM
Posts: 2999
Joined: Wed Feb 12, 2014 5:51 pm
Location: Atlanta, GA

Re: High spenders what do you spend on?

Post by JonnyDVM »

shuchong wrote: Wed Mar 31, 2021 6:46 pm Not a high spender, but surrounded by them.
  • Move to NYC.
    Buy a condo near Central Park.
    Use an interior decorator to outfit it with expensive furniture/rugs/etc.
    Get into art/antiquities/rare books and buy those for your apartment as well.
    Have catered parties at this apartment.
    Hire a nanny or other in-home help.
    Expensive summer camps, music lessons, tutors, etc. for your kids.
    Use black car service/a driver instead of the subway, both for you and to shuttle the kids around to all their extracurriculars.
    Have a weekend house upstate, that this driver also drives you to.
    Get season tickets to the NY Philharmonic, Met Opera, Ballet, sporting events of your choice, etc. Sprinkle that in with tickets to hit Broadway shows for your entire family plus visiting friends.
    Get a dog or two, plus dog walkers or doggie day care for the workweek and kennel fees for whenever you're out of town.
    Speaking of out of town, fly the family to Paris business/first class/privately for weekend trips. Then more exotic locations for longer vacations where you stay at high-end resorts. Use helicopter service to get to/from Manhattan for these flights.
    Buy couture clothing often (bonus points if the weekend trips to Paris are for this purpose), get suits made custom, get the fanciest handbags and watches.
    Eat out at fancy restaurants/drink at fancy bars.
I could easily spend myself into the poorhouse if I lived like that, even on my $500k salary. As it stands though, the only thing on the list that I find truly attractive are the season tickets to the Philharmonic: once they restart I might do that. The real problem is that the unpredictable hours I work for my ridiculous income mean that I can't reliably attend concerts... life is rough.

Good gravy! I think I became poor just reading that. Just when you feel like you’re doing pretty well for yourself you read a thread like this and you realize many spend in a weekend what I make in a month and don’t think twice about it.
I’d trade it all for a little more | -C Montgomery Burns
curmudgeon
Posts: 2630
Joined: Thu Jun 20, 2013 11:00 pm

Re: High spenders what do you spend on?

Post by curmudgeon »

Tingting1013 wrote: Wed Mar 31, 2021 3:20 pm
anon3838 wrote: Wed Mar 31, 2021 2:53 pm
Tingting1013 wrote: Mon Mar 29, 2021 10:07 am Recently we have seen some posts of folks spending $150-$200k/yr, excluding housing, college tuition and daycare.

If you fit this description, I’m genuinely curious, what are you actually spending your money on?

For reference my HHI is $700-800k, excluding housing and daycare and charity, my spend is only $50k/year.

What am I doing wrong?
I don’t think it’s realistic to exclude housing cost. I fit your description, and housing in my VHCOL is 41% of my yearly spend.
This is not a budget thread.

This is a “what non-obvious things can I spend money on” thread.
You might be amused by this light-hearted book The Inevitable Millionaires from 100 years ago on this topic:

http://gutenberg.net.au/ebooks13/1300521h.html

The problem for many high earners is that spending takes time and energy, which may be in short supply with that high-income career. Hiring out services can seem like a good option, but that often adds complexities to life (vetting people, taxes, etc), so the net win may be modest. As you go further up the ladder into having a personal business manager or such, you get into the risk of these people defrauding you.

In the four years since I retired, our investments have grown substantially. I keep in mind that the market goes down as well as up, but I do actively look for opportunities to spend that fit within our chosen lifestyle. Donations are increased. I don't care for five-star hotels, but I may break down and actually start buying business class for long-haul flights when we travel. I may spend a bit more on cars the next time around as well.
gips
Posts: 1760
Joined: Mon May 13, 2013 5:42 pm

Re: High spenders what do you spend on?

Post by gips »

unfortunately I can contribute to this thread:
- we have a house in a vhcol area, so while our home is paid off, $25k in taxes
- purchased pied in manhattan, paid off but maintenance runs $20k per year
- purchased condo in fl, paid off, we rent it part of the year, probably $5k per year neg cash flow
- my wife was an art history major, we attend auctions to purchase artwork, $20k per year
- our house sits on 2 acres of land. we were paying $10k a year for landscaping but in retirement have cut that to $3k by doing a lot of it ourselves
- health club memberships: $4k per year
- I'm 64, probably have 10 more years of good travel, before pandemic $50k per year on travel (6 weeks in asia, etc)
- NYC restaurants, $25k per year
- wine $5k per year (was higher but cognizant we may not be able to drink everything in our cellar before the end)
- I drive subaru foresters or now mazda 5 but my wife drives a tesla, so that's probably $10k a year in purchase costs
- aca health care premiums are $25k per year plus co-payments and deductibles
- my youngest graduates college this semester and we'll restart family vacations. would love to take them to japan, Australia, etc

we purchased the condo in fl, did all that spending, paid 3 college tuitions yet somehow our portfolio has risen in the value over the last 5 years. it's helped that I've continued to consult 3 days per week, 6 months out of the year but most of it has to do with market returns. should the market retreat say 25-50%, we'd adjust our spending accordingly, perhaps sell a property.

hope that gives op some ideas...
shuchong
Posts: 117
Joined: Mon May 05, 2008 7:19 pm

Re: High spenders what do you spend on?

Post by shuchong »

gips wrote: Wed Mar 31, 2021 9:23 pm unfortunately I can contribute to this thread:
- we have a house in a vhcol area, so while our home is paid off, $25k in taxes
- purchased pied in manhattan, paid off but maintenance runs $20k per year
- purchased condo in fl, paid off, we rent it part of the year, probably $5k per year neg cash flow
- my wife was an art history major, we attend auctions to purchase artwork, $20k per year
- our house sits on 2 acres of land. we were paying $10k a year for landscaping but in retirement have cut that to $3k by doing a lot of it ourselves
- health club memberships: $4k per year
- I'm 64, probably have 10 more years of good travel, before pandemic $50k per year on travel (6 weeks in asia, etc)
- NYC restaurants, $25k per year
- wine $5k per year (was higher but cognizant we may not be able to drink everything in our cellar before the end)
- I drive subaru foresters or now mazda 5 but my wife drives a tesla, so that's probably $10k a year in purchase costs
- aca health care premiums are $25k per year plus co-payments and deductibles
- my youngest graduates college this semester and we'll restart family vacations. would love to take them to japan, Australia, etc

we purchased the condo in fl, did all that spending, paid 3 college tuitions yet somehow our portfolio has risen in the value over the last 5 years. it's helped that I've continued to consult 3 days per week, 6 months out of the year but most of it has to do with market returns. should the market retreat say 25-50%, we'd adjust our spending accordingly, perhaps sell a property.

hope that gives op some ideas...
You're the NYC people I was referring to above! :D
Starfish
Posts: 2996
Joined: Wed Aug 15, 2018 6:33 pm

Re: High spenders what do you spend on?

Post by Starfish »

We live modestly and still easily spend 100k$ a year.
By modestly I mean: old cars, one kid, public school, 2 bedrooms and 1600sq ft house, no cleaners or gardeners, rarely eat out and never take out, lots of DYI, no expensive hobbies, cheap wine, we don't own anything of value etc. We travel but cheap (points+miles, economy and low cost airlines, airbnb, 3 star hotels,), ski but cost effective etc.
I could EASILY spend 2 times as much. Boat, RV, jetski, diving, more house, vacation house or condo, pilot license, new better bicycles, fancier smoker, more expensive car, Ducati motorcycle, expensive restaurants, more vacations, 5 star hotel, business class flying, water ski, cleaner and gardener and no DYI, 40k$ private school, Serengeti, Antarctica, Galapagos, Everest etc etc there is a huge range of things I would like to or could do.
A single vacation to Europe for 4 people can easily set you back almost 50k$ (not my case, but I have a friend who did just that).
User avatar
celia
Posts: 16774
Joined: Sun Mar 09, 2008 6:32 am
Location: SoCal

Re: High spenders what do you spend on?

Post by celia »

I only read the first page, but as we are in retirement, our housing expenses (except for maintenance and taxes), day care, and education no longer exist. Our biggest spending categories are taxes and health care (including 3 kinds of premiums for each of us).
SQRT
Posts: 1792
Joined: Sat Feb 05, 2011 8:44 am

Re: High spenders what do you spend on?

Post by SQRT »

Well, since you asked. Retired, 70 years old. Multiple homes(including property management, gardeners, pool guys, etc), boats, first class exotic foreign travel, frequent eating out, generous giving, expensive cars, clothes, jewelry, art, alimony. The usual suspects. Not difficult at all but we still insist on value for money.

Spending money is certainly not “rocket science” but as someone up thread said, everybody’s tastes are different. Surprised the OP needs suggestions?

Things we don’t do is fly private, pay interest, gamble, or generally attend live performances or sporting events.
Last edited by SQRT on Thu Apr 01, 2021 1:49 pm, edited 7 times in total.
Snuffycuts99
Posts: 207
Joined: Thu Apr 02, 2015 11:09 pm

Re: High spenders what do you spend on?

Post by Snuffycuts99 »

Starfish wrote: Wed Mar 31, 2021 11:05 pm We live modestly and still easily spend 100k$ a year.
By modestly I mean: old cars, one kid, public school, 2 bedrooms and 1600sq ft house, no cleaners or gardeners, rarely eat out and never take out, lots of DYI, no expensive hobbies, cheap wine, we don't own anything of value etc. We travel but cheap (points+miles, economy and low cost airlines, airbnb, 3 star hotels,), ski but cost effective etc.
I could EASILY spend 2 times as much. Boat, RV, jetski, diving, more house, vacation house or condo, pilot license, new better bicycles, fancier smoker, more expensive car, Ducati motorcycle, expensive restaurants, more vacations, 5 star hotel, business class flying, water ski, cleaner and gardener and no DYI, 40k$ private school, Serengeti, Antarctica, Galapagos, Everest etc etc there is a huge range of things I would like to or could do.
A single vacation to Europe for 4 people can easily set you back almost 50k$ (not my case, but I have a friend who did just that).
Agreed. We spend a bit under 100k a year but there is ZERO chance that I couldn't find simple ways to double that if I wanted to. Easy as pie.
gips
Posts: 1760
Joined: Mon May 13, 2013 5:42 pm

Re: High spenders what do you spend on?

Post by gips »

shuchong wrote: Wed Mar 31, 2021 10:55 pm
gips wrote: Wed Mar 31, 2021 9:23 pm unfortunately I can contribute to this thread:
- we have a house in a vhcol area, so while our home is paid off, $25k in taxes
- purchased pied in manhattan, paid off but maintenance runs $20k per year
- purchased condo in fl, paid off, we rent it part of the year, probably $5k per year neg cash flow
- my wife was an art history major, we attend auctions to purchase artwork, $20k per year
- our house sits on 2 acres of land. we were paying $10k a year for landscaping but in retirement have cut that to $3k by doing a lot of it ourselves
- health club memberships: $4k per year
- I'm 64, probably have 10 more years of good travel, before pandemic $50k per year on travel (6 weeks in asia, etc)
- NYC restaurants, $25k per year
- wine $5k per year (was higher but cognizant we may not be able to drink everything in our cellar before the end)
- I drive subaru foresters or now mazda 5 but my wife drives a tesla, so that's probably $10k a year in purchase costs
- aca health care premiums are $25k per year plus co-payments and deductibles
- my youngest graduates college this semester and we'll restart family vacations. would love to take them to japan, Australia, etc

we purchased the condo in fl, did all that spending, paid 3 college tuitions yet somehow our portfolio has risen in the value over the last 5 years. it's helped that I've continued to consult 3 days per week, 6 months out of the year but most of it has to do with market returns. should the market retreat say 25-50%, we'd adjust our spending accordingly, perhaps sell a property.

hope that gives op some ideas...
You're the NYC people I was referring to above! :D
guilty as charged! for us it’s the opera, not the philharmonic 😊
User avatar
beernutz
Posts: 978
Joined: Sun May 31, 2015 12:50 pm

Re: High spenders what do you spend on?

Post by beernutz »

H-Town wrote: Wed Mar 31, 2021 7:03 pm
Random Musings wrote: Wed Mar 31, 2021 11:41 am No one is into art/fine collectables?

RM
That'd require me to understand art or fine collectables. Well.. I don't.
My wife just inherited our only piece of something approaching fine art. It is a statue by a Russian/French sculptor nicknamed Erte which my late mother-in-law paid almost $8k for in 1995. This was money she had no business putting into art given her finances.

Googling the name of the statue I find that they are selling generally for between $1k and $2k before commission. So much for understanding "fine art".
AA: 40/41/19 - equities/positive return-zero volatility/bonds
eucalyptus
Posts: 746
Joined: Tue Apr 24, 2007 1:24 pm

Re: High spenders what do you spend on?

Post by eucalyptus »

Random Musings wrote: Wed Mar 31, 2021 11:41 am No one is into art/fine collectables?

RM
Fine art, in particular paintings, very much enjoy following invaluable and liveauctioneer and the various auctions they feature I find the gallery and auction worlds interesting.

But I think rockstar has an excellent point about fraud. I guess I feel that a work by a lesser known contemporary artist, purchased from a reputable gallery, is probably real. Anything else ... that hand signed Dali/Miro/Chagall/other widely recognized artist's print ...
Last edited by eucalyptus on Thu Apr 01, 2021 12:24 pm, edited 2 times in total.
stoptothink
Posts: 15368
Joined: Fri Dec 31, 2010 8:53 am

Re: High spenders what do you spend on?

Post by stoptothink »

beernutz wrote: Thu Apr 01, 2021 12:06 pm
H-Town wrote: Wed Mar 31, 2021 7:03 pm
Random Musings wrote: Wed Mar 31, 2021 11:41 am No one is into art/fine collectables?

RM
That'd require me to understand art or fine collectables. Well.. I don't.
My wife just inherited our only piece of something approaching fine art. It is a statue by a Russian/French sculptor nicknamed Erte which my late mother-in-law paid almost $8k for in 1995. This was money she had no business putting into art given her finances.

Googling the name of the statue I find that they are selling generally for between $1k and $2k before commission. So much for understanding "fine art".
The list of consumption items I have no understanding of is vast, "fine art" is probably #1 (right ahead of NFTs and high-end watches).
teCh0010
Posts: 415
Joined: Mon Oct 31, 2011 11:20 am

Re: High spenders what do you spend on?

Post by teCh0010 »

simplesimon wrote: Mon Mar 29, 2021 10:16 am
Tingting1013 wrote: Mon Mar 29, 2021 10:07 am Recently we have seen some posts of folks spending $150-$200k/yr, excluding housing, college tuition and daycare.

If you fit this description, I’m genuinely curious, what are you actually spending your money on?

For reference my HHI is $700-800k, excluding housing and daycare and charity, my spend is only $50k/year.

What am I doing wrong?
I'm not doing this now, but first-class travel, fine dining, and club memberships come to mind.
Yep, lie flats for a family of four to Japan - $24k
helloeveryone
Posts: 1285
Joined: Sun Sep 04, 2016 5:16 pm

Re: High spenders what do you spend on?

Post by helloeveryone »

Tingting1013 wrote: Tue Mar 30, 2021 10:28 am
stoptothink wrote: Tue Mar 30, 2021 9:50 am
Tingting1013 wrote: Tue Mar 30, 2021 9:42 am
mikejuss wrote: Tue Mar 30, 2021 9:41 am
Tingting1013 wrote: Tue Mar 30, 2021 9:33 am

For Bogleheads who take more joy in saving than spending, it shouldn’t seem odd at all.
Then you've answered your own question (and a good answer it is): save your money.
Exactly what I’ve been trying to avoid.

Let me lay it out more explicitly for you.

I save $300k per year. Not because I need to or want to but because I don’t know what to spend it on. Every day that money sits in the bank / investments is a day of lost utility - it could have been spent on something I enjoy, but how would I know what I would enjoy buying if I’ve never bought those things before?

This is the same motivation as the two threads I’ve linked to above, but again, with a higher entry point.
Then try them. How to spend money isn't some secret held by the super wealthy. As you can see, you are getting the logical answers: more house, fancy cars, travel, fancy clothes, services (house cleaning, chef, etc.). Is there really anything posted in this thread that you weren't aware of?
I am pretty sure the super wealthy spend money in ways few of us know about.

And some ways of spending large amounts of money come with downsides that you wouldn’t know ahead of time.

Hence I am asking for personal advice from those who have been there and done it.
There are some shows on TV that show extravagant lifestyle...
Fly to Paris in a jet to go to costco instead of going to your local costco. (or were they going to Gucci and Louis Vuitton and those other stores?)
Throwing a party for themselves and their friends that costs six figures
Going on shopping sprees for a few hours where they spend tens of thousands of dollars
Go on a yacht to various islands
Use a helicopter to bypass LA or NYC traffic
Shalom Aleichem
Posts: 263
Joined: Tue Mar 16, 2021 8:55 pm

Re: High spenders what do you spend on?

Post by Shalom Aleichem »

AerialWombat wrote: Mon Mar 29, 2021 1:31 pm
Tingting1013 wrote: Mon Mar 29, 2021 1:15 pm Thank you LadyGeek.

To be clear, I am looking for what high earners spend their discretionary income on, excluding these items:

- housing
- education / childcare
- charity

This is personally actionable as I am considering how to ramp up my own discretionary spending.
Doesn’t everybody have a vice? When I was poor, I could not afford single malt Scotch. Now I can.

Aside from that, it’s expensive hobbies. Shooting can easily be more expensive than golf. Anything for my new boat is ridiculously overpriced, but I pay it.
Probably 15 y ago I started seriously getting into scotch. I wanted an amazing experience, looked up what are the best bottles ever made, then went to purchase to try what great scotch should be. The problem of course, is the great bottles are single casks from a particular year and of course such and such a bottle long since disappeared from the face of the earth. So I looked for the next best bottle and the next and none could be had because they were all bottled 20 years prior and simply didn't exist. Finally I found current releases that were supposed to be amazing, would buy one, and drink it, but then could not replace it because by the time I finished, they were all sold out everywhere in the world (wine-searcher.com). So I decided I would instead buy TWO of whatever bottle was supposed to be great - one to drink and one to save and savor in the future. The problem of course was that once I drank the first bottle I could not open the second bottle because it was no longer obtainable. So the solution (of course) was for every highly regarded bottle I bought I would buy three. One to drink now, one to drink in a few years, and a third who knows when.

At the time scotch prices were not insane. Brora could be found around $300/bottle. Macallan 18 was good back then and was under $200. I could find Macallan 25 for $300 and 30 for around $750. My favorite was old Glendronach and I found a bunch of 1972's and 1968's for reasonable prices. Glenfarclas 30 was probably going for around $200 and 40 for $300. Maybe less. Port Ellen Special Releases were probably $600. Pappy 20 year probably under $300.

So I stocked up back then, and since then the prices are crazy. So I drink them slowly and recognize I can't spend what people are charging, so whatever I have is probably all I will ever buy.
darrvao777
Posts: 293
Joined: Wed Sep 10, 2014 1:34 pm

Re: High spenders what do you spend on?

Post by darrvao777 »

Car washing

i have a pressure washer just for washing cars: $1000
vinhodoporto
Posts: 300
Joined: Tue Dec 24, 2019 9:14 am

Re: High spenders what do you spend on?

Post by vinhodoporto »

Travel, especially international
Going to shows, concerts, and live sporting events
Fine dining
Fine wine, liquor
Going to bars and clubs
Whole Foods and other expensive grocery stores
Kids sports/ activities especially private lessons, camps, travel teams
Medical/ health expenses not covered by insurance (things like orthodontics)
Cars
Home improvements and additions
“Convenience” services like meal delivery, house cleaning, landscaping/ yard service
Collecting old books
Gifts
Charity
Helping out a few family members
flyfishers83
Posts: 408
Joined: Fri Jun 07, 2019 6:08 pm

Re: High spenders what do you spend on?

Post by flyfishers83 »

I’m certainly not a “high spender”, but I do really enjoy high end equipment. Mostly fishing tackle, but also shotguns and other gadgets. The value of my fishing tackle would probably shock most ($500 plus reels and individual lures that are worth more than $500) , but I’ve acquired it deliberately over years. It’s a combination of collection, utility and art. When I had no money, I did a lot of buying and selling to finance. Now, I just like good equipment.

All to say, if there are things you like to do, do them well and with equipment that is fun to use.
flyingaway
Posts: 3908
Joined: Fri Jan 17, 2014 9:19 am

Re: High spenders what do you spend on?

Post by flyingaway »

flyfishers83 wrote: Fri Apr 02, 2021 10:00 pm I’m certainly not a “high spender”, but I do really enjoy high end equipment. Mostly fishing tackle, but also shotguns and other gadgets. The value of my fishing tackle would probably shock most ($500 plus reels and individual lures that are worth more than $500) , but I’ve acquired it deliberately over years. It’s a combination of collection, utility and art. When I had no money, I did a lot of buying and selling to finance. Now, I just like good equipment.

All to say, if there are things you like to do, do them well and with equipment that is fun to use.
I hope fish loves your lures.
Dottie57
Posts: 12379
Joined: Thu May 19, 2016 5:43 pm
Location: Earth Northern Hemisphere

Re: High spenders what do you spend on?

Post by Dottie57 »

Tingting1013 wrote: Mon Mar 29, 2021 1:15 pm Thank you LadyGeek.

To be clear, I am looking for what high earners spend their discretionary income on, excluding these items:

- housing
- education / childcare
- charity

This is personally actionable as I am considering how to ramp up my own discretionary spending.
Why do you want to spend more, if you haven’t found what you want to spend it on?
Seasonal
Posts: 3045
Joined: Sun May 21, 2017 1:49 pm

Re: High spenders what do you spend on?

Post by Seasonal »

shuchong wrote: Wed Mar 31, 2021 6:46 pm...
Use black car service/a driver instead of the subway, both for you and to shuttle the kids around to all their extracurriculars.
...
Speaking of out of town, fly the family to Paris business/first class/privately for weekend trips. Then more exotic locations for longer vacations where you stay at high-end resorts. Use helicopter service to get to/from Manhattan for these flights.
The difference between regularly using a black car service and your own driver (and perhaps security) is vast.

Private aviation to Paris from NYC is a multiple of business/first class. Flying on your own jet is another realm entirely.

Maybe the difference between six figures and seven or more figures a year.
FlyingMoose
Posts: 630
Joined: Wed Mar 04, 2009 9:48 pm

Re: High spenders what do you spend on?

Post by FlyingMoose »

3-5 watch collection of fine Swiss mechanical watches (Audemars Piguet, Patek Philippe, Vacheron Constantin, Breguet, Blancpain, A Lange & Sonhe [German], etc.) in the $25k-$100k range per watch.
Boston773
Posts: 8
Joined: Tue Mar 29, 2011 10:02 am

Re: High spenders what do you spend on?

Post by Boston773 »

After putting on 15 pandemic pounds, I value a healthy and efficient diet plan. One expensive but quick way to remedy the situation was a prepared meal plan. I just signed up for Fit N Lean. They don't leave you hungry like other plans. They are very filling with ~400-550 calories per meal. I'm no foodie, but I think their meals compete with a quality salmon meal at a nice restaurant. You can also pick high protein, vegan, etc. ~170 bucks per week for a 14 meal a week plan. One negative is the waste with the shipment and packaging. Cheap and healthy splurge that can be canceled at anytime! I have no affiliation but I am thankful for 10 less lbs and 2% less body fat.
523HRR
Posts: 176
Joined: Tue Mar 11, 2014 8:27 pm

Re: High spenders what do you spend on?

Post by 523HRR »

Highest spending category is Taxes. Next spending category is not even close.
Capsu78
Posts: 671
Joined: Wed May 18, 2016 10:30 am

Re: High spenders what do you spend on?

Post by Capsu78 »

mancich wrote: Mon Mar 29, 2021 4:10 pm God I hate coach

https://www.youtube.com/watch?v=Pv1dWcD328s
Enjoyed that! DW had Mega Corp international responsibility for 4 years...Platinum exec pampering but NO first class approval from corporate. Her 6 ft 6 bosses boss couldn't fly 1st. Well, she became pretty seasoned as a traveler. I decided to ER largely based on her taking many trips to 1st class destinations in 4 star hotels. I wanted to be free to meet up with her around the world and stay in her room. I couldn't afford her reimbursed airfare spends, so I would cheap it out the best I could, once spending 38 hours of travel to get to Tokyo via Dubai. Since we were making flight bookings independently, we often did not sit together even if I could manage to get on the same flights as her, even though she had enough "prestige" to easily make that happen. I realized that she would take her chances with a perfect stranger sitting next to her being less disruptive to her "travel mojo" than having the responsibility of "being my wife" (...can you grab my bag?...Check out this movie!...DW, I need to get up" on an 18 hour flight than she was willing to put up with!
We've been married 30+ years, so it wasn't really an issue if we were seated a section or 2 apart.
Once Emirates spotted our last names, asked for our tickets at check in which had been booked independently and proceeded to tear them up, saying "Good news...we have you sitting together". She said "Hold it, are these both aisle seats???" Well, no of course not. The beauty is they put me on the aisle and her inside to which she said "No No No No No!" Took 2 managers to understand we didn't want anything other than 2 aisle seats that didn't need to be together>
delamer
Posts: 17453
Joined: Tue Feb 08, 2011 5:13 pm

Re: High spenders what do you spend on?

Post by delamer »

523HRR wrote: Sat Apr 03, 2021 6:17 pm Highest spending category is Taxes. Next spending category is not even close.
So true...
One thing that humbles me deeply is to see that human genius has its limits while human stupidity does not. - Alexandre Dumas, fils
teCh0010
Posts: 415
Joined: Mon Oct 31, 2011 11:20 am

Re: High spenders what do you spend on?

Post by teCh0010 »

flyfishers83 wrote: Fri Apr 02, 2021 10:00 pm I’m certainly not a “high spender”, but I do really enjoy high end equipment. Mostly fishing tackle, but also shotguns and other gadgets. The value of my fishing tackle would probably shock most ($500 plus reels and individual lures that are worth more than $500) , but I’ve acquired it deliberately over years. It’s a combination of collection, utility and art. When I had no money, I did a lot of buying and selling to finance. Now, I just like good equipment.

All to say, if there are things you like to do, do them well and with equipment that is fun to use.
My dad isn’t a high spender, but he spends on quality fishing gear. He didn’t tell me what he spent replacing the already nice lowrance HDS screens on his boat with a Garmin refit with garmin screens (2 x 9in), sidescan, livescope, garmin trolling motor, and 2 x Lithium Ion trolling motor batteries but it was a decent amount. Like probably 8k+. He can recoup some of that selling off his old electronics.
SQRT
Posts: 1792
Joined: Sat Feb 05, 2011 8:44 am

Re: High spenders what do you spend on?

Post by SQRT »

523HRR wrote: Sat Apr 03, 2021 6:17 pm Highest spending category is Taxes. Next spending category is not even close.
This would likely be true for most people who define income tax as an “expense”. I view it as an offset to my income though, Ie it’s a cost of earning the income. Lower income-lower taxes. Unlike most true expenses, there is not much you can do about income taxes that doesn’t include reducing your income or affecting your retirement accounts. My biggest ongoing discretionary item now that I’m retired, relates to the realization of cap gains. This has a direct impact on my income taxes, so I keep the two effects together on my spreadsheets.

I treat property taxes as a “true” expense.

Lots of different ways to view this stuff though. Whatever works for you.
Flashes1
Posts: 1431
Joined: Wed May 07, 2008 7:43 am

Re: High spenders what do you spend on?

Post by Flashes1 »

Non-essential fluff stuff I sometimes shake my head about given my middle-class upbringing:

* Baseball hitting lessons with speed and agility training for my teenager: $6k/year
* Gym dues for my son: $2k/year
* Horse lease and riding lesson for daughter: $7k/year
* Private school tuition for daughter: $15k/year

My upcoming Retirement "fluff" items:

* Social dues at Country Club: $10k/year
* Dues at Beach Club: $10k/year
* HOA fees: $8k/year
* Property taxes: $14k/year
Golfalot
Posts: 36
Joined: Mon Dec 26, 2011 9:06 am

Re: High spenders what do you spend on?

Post by Golfalot »

As our net worth has grown, I’ve become much more comfortable at spending money. It’s kind of fun. We spend $180-$200k / year roughly. Some of the bigger contributors are....
- Vacations/Travel - we take a few family vacations per year. Just did sailing trip with captain/cook in US Virgin Islands. Wish we were able to go to the BVIs but Covid made that difficult. I would highly recommend opening up the purse strings and spend money on travel experiences.
- Country Club - probably spend $20k/year at the club playing golf, dinners, time with friends and family. Very big part of our life in our community.
- Mother’s Assisted Living Facility - $20k/yr. Split costs with siblings in MCOL area.
- Boat - $4-5k / year - one of the best purchases made in years. Bought boat a couple years ago for $70k. Love getting out on the water to relax and enjoy time with friends/family. As others have pointed out, boating could be very easy way to amp up your spending.
- Clothing - rather than buying clothes off tables at Costco, I now have no problem spending some $$ on higher quality brand name clothes
- Groceries - $12-15k / year for groceries for our family
- Dining Out - we enjoy a lot of nice meals out..especially on weekends
- Household stuff - landscaping, house cleaning, health club memberships, hair salons, amazon, etc..
- Charity - church and local charities
- Property Taxes - $10k/yr for primary residence

Those are the biggies off the top of my head, but as others have pointed out, I would focus on spending money on things that make you happy. Life is too short. For me, spending money on fun activities like traveling with my family or golfing with friends is well worth it.
TheDDC
Posts: 1612
Joined: Mon Jan 08, 2018 10:11 am

Re: High spenders what do you spend on?

Post by TheDDC »

VTSAX - $50-60k per year
FSKAX - $19,500 per year

Yeah. We have high priced tastes.

-TheDDC
Rules to wealth building: 75-80% VTSAX piled high and deep, 20-25% VTIAX, 0% given away to banks.
Normchad
Posts: 5648
Joined: Thu Mar 03, 2011 6:20 am

Re: High spenders what do you spend on?

Post by Normchad »

delamer wrote: Sun Apr 04, 2021 10:01 am
523HRR wrote: Sat Apr 03, 2021 6:17 pm Highest spending category is Taxes. Next spending category is not even close.
So true...
Last year, taxes exceeded all of my other spending, combined. Looking forward to early retirement, and 7-10 years of paying zero in taxes......
User avatar
gr7070
Posts: 1928
Joined: Fri Oct 28, 2011 10:39 am

Re: High spenders what do you spend on?

Post by gr7070 »

No one would confuse me with a high spender. However, as my net worth climbs I've been spending less and less time on DIY projects I don't enjoy, and spending more and more money on these things that save me time.

So mechanics, plumbers, electricians, maid, etc.

Though apparently I'm enjoying chopping out a huge stump; as I'm unwilling to pay for a grinder to come out.

After that, buy a lakehouse and/or ski chalet and/or 100 acres to spend that extra time at. Bonus: it's likely to appreciate in value.
stoptothink
Posts: 15368
Joined: Fri Dec 31, 2010 8:53 am

Re: High spenders what do you spend on?

Post by stoptothink »

Normchad wrote: Sun Apr 04, 2021 9:19 pm
delamer wrote: Sun Apr 04, 2021 10:01 am
523HRR wrote: Sat Apr 03, 2021 6:17 pm Highest spending category is Taxes. Next spending category is not even close.
So true...
Last year, taxes exceeded all of my other spending, combined. Looking forward to early retirement, and 7-10 years of paying zero in taxes......
We're not even high income (for Bogleheads, ~$230k/yr HHI) and I think this was the case for us in '20 as well.
MAKsdad
Posts: 366
Joined: Wed Mar 17, 2021 7:43 am

Re: High spenders what do you spend on?

Post by MAKsdad »

stoptothink wrote: Mon Apr 05, 2021 8:39 am
Normchad wrote: Sun Apr 04, 2021 9:19 pm
delamer wrote: Sun Apr 04, 2021 10:01 am
523HRR wrote: Sat Apr 03, 2021 6:17 pm Highest spending category is Taxes. Next spending category is not even close.
So true...
Last year, taxes exceeded all of my other spending, combined. Looking forward to early retirement, and 7-10 years of paying zero in taxes......
We're not even high income (for Bogleheads, ~$230k/yr HHI) and I think this was the case for us in '20 as well.
2020 taxes paid were ~6 years of spending for all other items.
Post Reply