Why is it my richer clients drive old bangers?

hypno06

I don't think it is patronising at all.

Quite often we spend more than we really need to because we think, for whatever reason, that we should have the latest X, Y or Z. This could be because we feel that we would be judged badly if we are lagging behind.....it could be that we are jealous of our neighbours and want to keep up with the Jones', it could be that we have deep seated insecurites and spending money on the latest "whatever" helps us feel better, temporarily.

If some of our spending is to make a statement, we feel we need to make, or to keep up with our colleagues, neighbours or members of our family, then a thread like this reminds us that we need to look beyond the external.

Behind the new car may be a lot of debt.....like ours. Behind the new car may be an inheritance from a lost parent.......

We don't know....so we shouldn't judge. But we can think of the alternatives, not just "they must be loaded".

Conrad

I think the message is that you dont have to try and find money to keep up with these apparant have it all's. It can give a certain contentment not to feel envious of people, when you factor in thier is a high probability they might be funding everything on debt and by not paying down thier mortgage and not saving.

So often we see someone in a black Range Rover Sport and wonder how lucky they are to own such a vehicle - are they lucky, or are they just living a lie?

Here's a contrast;

One client of mine is 30, owns 2 houses mortgage free. She worked for a printer on £14 pa. I say 'worked' because she is currently taking time out, living off the rent and working part time as and when.

Client 2 pulls up in a mega motor (over £150k I think). He owns his own building firm, has a Brightling watch, the blond size zero babe and so on.
Anyway, he wanted a 100% (at a push 95%) mortgage as he has no spare money.
He also laughed that he is close to bankcruptcy. Honestly, this is real and would rather put mortgage in GF name only.

What a contrast between these 2 clients. People would never think client 1 had any money at all, yet she has about £450k in property, whilst client 2 has about £10k in all ther world if you take away the debt from the assets.

rog2

hypno06 wrote: »

We don't know....so we shouldn't judge. But we can think of the alternatives, not just "they must be loaded".

That, hypno, is quite correct - we should not judge.

Every so often certain 'posters' come accross to this forum and start threads which are specifically designed to be 'inflamatory' as they are based on the assumption that 'excessive consumer spending' is the main, even only, cause of 'debt'.

Itis easy to say things like this, when 'cushioned from reality' by actually working within that same 'financial industry' that actually needs people to spend to the limit of their capacity in order for that same industry to survive and grow.

So whilst spending above one's means may, indeed, be a significant contributory factor towards debt, it is not the only factor, and should not be put forward as such.

You don't necessarily need to spend in order to acquire debt.

Rikki

Second hand snobs as I call them.

Posh house, big car but nothing in the freezer to feed you.

Conrad

hypno06 wrote: »

This could be because we feel that we would be judged badly if we are lagging behind.....it could be that we are jealous of our neighbours quote]


Exactly

By being mindful of the notion that all not necesarily what it seems, you can be a little happier in the knowledge that supposedly rich git could well owe more than they 'own'.

Psychologists have long been aware the effect 'comparative status' has on a persons well being, indeed some argue this is the route of much of our unhappiness, where self doubt causes us to frett about our place in the pecking order.

The point here is that it's easy to feel a bit depressed about your own status when there are mums at the school gate pulling up in Range Rover Sports. You might have a thought like "what am I doing wrong, and why is it she is able to capture these wealth displays".

I note KERRY CATONA is about to go Bankcrupt. She for me is typical of eberything that is wrong with society and how we misplace our esteem tokens in people like her.

One of the guys from BLUE was repossessed recently. He had not long owned a £1.6m property. You see, he wanted eyes gazing longingly to elivate his feeling of being higher up the chain. If had had bought a 3 bed semi for £300k he perhaps would now have not been repossessed.

hypno06

I agree with what you say, Rog.

And I know that Conrad has started inflammatory threads in the past - I am sure he will agree too.

I just didn't feel that this was one of them.

Gloomy_Past_Bright_Future

"The Millionaire Next Door"

By Thomas J Stanley

Confirms everything the OP states.

That book has been the biggest inspiration to me.

(and this forum of course!)

tsharp

When people buy cars for say £30k, ask yourself 'do they have £30k sitting around in the bank that they won't miss?' The answer is probably not.

The finance companies have long since sold us all down the river on this 'i deserve it/i can afford it' principle. We're all guilty of it...

hypno06

Sorry, wanted to add - I too may therefore be "cushioned from reality"based on my work environment.....

.....but in my first post I mentioned that I had learned my lesson about not judging on appearances from an early age. I think I was about 9 at the time, and that has stuck with me.......I wasn't "cushioned from reality" then.

Soubrette

rog2 wrote: »

I find this a very 'simplistic' attitude towards debt - some might say 'patronising'.

Having read some of your previous posts, Conrad, why not have your say about 'debtors squandering money' and leave us alone, there's a good chap.

The OP made me smile, does that mean people will see my matalan clothes, 8 year old car (with characterful dents), small semi etc etc as evidence of how rich I am :rotfl:

Sou