The Rich act Poor and the Poor act Rich.

helensbiggestfan

HillStreetBlues said:

I'm surprised this thread lasted past the weekend.

It's hilarious.   

helensbiggestfan

Hattie627 said:

Two phrases I remember when growing up:

Fur coats and nae knickers (when referring to the apparently well-to-do)
Spam Valley (reference to the posher side of town where the mortgage took all the money and only spam for tea)

I grew up hearing these phrases too. Very apt. Lol. 

Grumpy_chap

Hattie627 said:

Two phrases I remember when growing up:

Fur coats and nae knickers (when referring to the apparently well-to-do)
Spam Valley (reference to the posher side of town where the mortgage took all the money and only spam for tea)

I always assumed the "nae knickers" part was not really related to money or lack of but more a manner of behaviour 

helensbiggestfan

Emmia said:

Bigbobby said:

Are we living in a society in which many are financially illiterate and consumeristic?  Live for the moment, never mind tomorrow, show off and live beyond our means?  Try to be someone we are not most likely down to insecurity and jealousy?  Spend, spend, spend and not save and invest?

I see it every day where nearly every 3rd car I pass by is huge and expensive way beyond what is required for UK roads.  Some may say it is for comfort, safety and space but really?  I drive a Dacia Sandero 1L and it serves me fine getting from A to B.  Most people’s average week is work, supermarket once a week and a car boot sale at the weekend.  Why the large cars for this? Status symbol probably insecurity in themselves?

Going on holiday to expensive 5* hotels with fine dining and drinking?  My colleague is going to Marbella in next few weeks.  £2000 for 5 nights in  5 star hotel with breakfast.  They then plan to spend another £2000 on eating and drinking out posing on the seafront.  Both have average incomes.

Big houses (especially new builds in last decade); showing off on facebook going to cocktail bars and top notch restaurants; expensive clothes; jewellery and watches; order gadgets from amazon every other day; expensive gym memberships.  The list could go on.  We life in a society that needs that instant gratification, that adrenaline rush, trying to outclass others.  Never mind saving and investing for the future or a rainy day.

Spoiling their children rotten seems a common thing now as well.  Getting them a new car after they have passed their test; bailing them out of financial emergencies; £200 designer handbags for birthdays; private reg number plates.  When I was growing up in the 80s and 90s I remember society as a whole having less disposable income with higher interest rates etc.  Fast forward to 2025 and yes the cost of living etc has been an issue but compared to previous generations we have never had it so good.

I then overhear friends, colleagues etc then say how the struggle to pay essential bills, dread paying for xmas, are in debt and no rainy day fund???  The luxury lifestyle on just an average income is all just an illusion???

I’m no angel and in the past I made some unwise financial decisions such as smoking and going out drinking too much with my mates every weekend etc in my teens.  Generally though I have been sensible with money and lived below my means probably due to my upbringing.  We were not rich or poor and I remember as a child living just an average lifestyle.

By the time I hit my 20s I started to calm down and grow up.  I got a mortgage at 23 in a 1 bed flat, I drove an cheap Peugeot, paid all my bills, no debt.  Yes I did have fun going camping, fishing, hiking etc which brought me great satisfaction and living a luxurious lifestyle had no appeal. 

I’m 39 now and matured more and remain sensible with money.  I now live in a 2 bed semi, drive an average car, still pay my bills, not in debt and made further financial decisions:

-I pay extra into my NHS pension scheme

-I have a SIPP and stock and shares ISA with Vanguard (Global index tracker and global bond tracker)

-Emergency Fund in a Money Market Fund

-Couple of buy to let properties

-I have a lodger with rent a room scheme

-Overtime at work when available and a second job

I shop around for the best deals with insurance, utilities etc; pay annually which tends to be cheaper; shop at discount supermarkets etc.  I am not boring and still have fun and I am going on holiday to Scotland in July camping then off to Malaga in September.  I live a frugal life – batch cooking, growing veg, wearing clothes that may be older but still in good condition, baking, DIY etc.

By saving and investing I have long term ambitions such as financial independence/early retirement.  I do not want to have to work until 68 just to feed a false lifestyle.  I am planning to be mortgage free soon and move to the countryside at some point.

As well as spending being a cultural issue it is also an educational one.  I do not remember being taught about budgeting at school.  My financial knowledge came from doing my own research and reading of my own accord later on in life.  Reading financial cooks and following advice such as Buffett and Bogle.

Yes I do appreciate that everyone situation is different and people have responsibilities and commitments - children, health issues, deprivation, social issues but with even with some simple adjustments people could make life so much easier for themselves.

I find that living a simple yet still fun life gives me freedom and huge peace of mind at night.  I do not have to pretend to be someone I am not and fall for the lifestyle trap.  I would not describe myself as Rich but I do have more net worth now compared to my 20s.  Why? Because I live below my means and not above my means.  Look at Mark Zuckerberg, on stage wearing some average jeans and a t-shirt?  Says a 1000 words in my view.  Those with more net worth tend to not going around showing off as it would be a security issue as well.  It is not worth attracting attention to yourself.

One quote that sticks with me is that “The Rich act Poor and the Poor act Rich”.  This is a true reflection or many in society now.  When you next drive past that large 4x4 just ask yourself, are they really that rich?

Your post comes across as incredibly judgemental, and I sense a tinge of jealousy. People can spend and save (or not) as they wish. Focus on yourself and your life rather than judging others.

Incidentally Zuck has moved away from the grey t-shirts (which might look "average" but in fact were very expensive and custom made... Allegedly $300 - $400 a pop) and jeans... To a somewhat different look.

 Bigbobby......for your enlightenment.  Those grey t shirts were made by a company called Loro Piana, the brainchild of the Olsen Twins.  Their remit is to sell luxury clothing to people who don't want to look flashy and flaunt their wealth but who want to send a signal that they are indeed very wealthy.  It's called "Stealth Wealth". When you know, you know. 😂. 

As for the flashy cars.  These days they are usually leased not owned outright so not really an indicator of wealth. If you are self employed you can put them through the books as a business expense. The tax saved pays for the lease.  

That's just one of the wheezes that people can use to "have their cake and eat it". Lol. 

It is worth remembering that designer clothes also mean nothing. Many designers have their garments made in exactly the same factories as those from the lower end of the market. "Designer" no longer has any real cachet these days, at least not to those who understand how it all works,  It's also worth remembering that some of the biggest rogues and criminals deck themselves out in Saville Row suits.....

Ultimately, how we spend or save is all about personal choice. Some people prefer to stockpile cash as if it was going out of style, some people prefer to splash what they have with gay abandon.   

Personally I think it's about being comfortable with your decisions and living a lifestyle which makes you happy.  For example there is no way I would ever take in a lodger.  Yes the money would be useful but I value my privacy far too much.  I would rather live alone in a cramped bedsit than share a mansion, but that's just me.  

Each to his/her own. 

Nebulous2

Grumpy_chap said:

Hattie627 said:

Two phrases I remember when growing up:

Fur coats and nae knickers (when referring to the apparently well-to-do)
Spam Valley (reference to the posher side of town where the mortgage took all the money and only spam for tea)

I always assumed the "nae knickers" part was not really related to money or lack of but more a manner of behaviour 

Definitely about money in Scotland. Often used in reference to people from Edinburgh - with drawers used instead of knickers. 

Prioritise spending on showy things that people can see, and cut back on the hidden things that don't give you any kudos. 

I've also, less frequently, heard stories of people with fancy houses who can't afford to furnish some rooms, upper floors, but hide that by furnishing those that are visible from the street. 

enthusiasticsaver

I think you have to allow that everyone has different priorities and lifestyles.  Some might say why you are taking in a lodger and doing a second job when you obviously do not need to as you have laid out more information in your OP than you would see if driving past someone in a flashy car? Maybe they are rich, maybe it is leased or on credit, maybe they have splurged with a bonus/inheritance/gift.  

We fall definitely into the middle class both growing up and while working and are comfortable now having both retired at 58 with no mortgage, private pension and investments. So neither rich nor poor although it depends on parameters. 

All through our lives both when working and now in retirement we were relatively sensible with money but did go for expensive holidays or cars occasionally but they were all budgeted and saved for. We gift to our adult children to help them out as my mum did and still does with us. We gave equal weight to saving for the future while living for today.  We valued time over money so working a second job when we did not need to and sacrificing time spent with family, friends and hobbies etc was not something we needed or wanted to do. We also never embraced the cheap credit which was and still is available unless it was budgeted for so interest free credit was occasionally used but I am debt averse so I did avoid where possible beyond our mortgage. When we have had payouts though we have certainly spent on nice cars and holidays but we usually do save some of it too. 

We certainly could have stockpiled cash had we upped our income in the ways you have but we have enough to cover our lifestyle without us having to worry too much and in my opinion money is there to facilitate the sort of lifestyle we want not just accumulate ad infinitum.  Our investment advisor is more of a lifestyle facilitator where we tell him how much we need monthly from our portfolio and he organises  our investments to pay out what is needed to cover this. Obviously we have built in  a buffer for emergencies and end of life care. 

You do not know when you see an expensive car or if a colleague mentions 5 star hotels how they are paying for it because that is their choice and business and I cannot say I have ever presumed to think if they are rich or poor in money terms. 

Exodi

Bigbobby said:
Fast forward to 2025 and yes the cost of living etc has been an issue but compared to previous generations we have never had it so good.

I'll leave you to tell the 30 year olds still living at home then.

Something about Netflix or avocados, I expect.

MeteredOut

Exodi said:

Bigbobby said:
Fast forward to 2025 and yes the cost of living etc has been an issue but compared to previous generations we have never had it so good.

I'll leave you to tell the 30 year olds still living at home then.

Something about Netflix or avocados, I expect.

Your forgot Starbucks.

It's more about cars, holidays, gym memberships and wanting an instagrammable home rather than a basic starter home, but we all have to make priority decisions on where we spend our money.