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Comment by tekla | Hacker News Reader

After talking to some people, I've realized many people live in vastly different worlds than I do. People making significantly less money then me spending more than 2x on their rent versus mine.

I have "expensive" hobbies, but that mostly entails a high upfront cost ($2-3K) for gear that will last a decade minimum, so its not a huge issue.

What the hell are (somwhat rich) people doing with their money? I'm confused since I don't know what there is to spend big money on. Health care is a thing, but I assume high paying jobs have somewhat decent insurance that shouldn't bankrupt you immediately. There are only so many $20K watches and $75K cars you can buy before it just becomes pointless.

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First, the idea that the only way to spend 150k (post tax in CA) is expensive watches and cars is pretty ridiculous. A half decent accommodation will run you 30k if renting, or more like 60k for a mortgage at todays rates for a median cost SFH. Add in various insurance payments, car and home maintenance, the odd medical bill, etc. and you can spend the 90k remaining without any “luxury” purchases at all. Certainly you don’t have to but…

Second and more importantly, they are spending on whatever the fuck they want. You do realize you’re going to die, yes? There’s no way in which saving more than your neighbor is “good”, morally or otherwise. Maybe by saving more “now” you have a more comfortable “later”, maybe you don’t — the former may be more likely but isn’t guaranteed, and you should not judge someone for having a different risk profile than you.

Singe Family Homes are the huge luxury here. Never in the history of mankind have people lived in single family homes, or they did when the family. consisted of 10 to 15 people including elders, not when the family is roughly 4 people (parents + 2 children).

The square foot / person is huge and leads to lots of issues around transportation (hello cars !), so the cost on society is massive, especially if you factor in private gardens, which are basically private pieces of land that cannot be used for anything - and aren't that ecologically beneficial.

Lower you housing expectations to a 1500 sq ft apartment with no private garden (but with a park nearby) on a 10 story building and you have something that actually allows for efficient public services and is economically viable for an average person. Of course, rich people will still be able to afford private houses, but that should be the exception, not the norm. The median SFH shouldn't be the reference.

Housing is usually the biggest expense someone has. Asking for luxury here means that you'll have to compromise on everything else. Being reasonable will free budgets for a lot of other things.

> A half decent accommodation will run you 30k if renting, or more like 60k for a mortgage at todays rates for a median cost SFH. Add in various insurance payments, car and home maintenance, the odd medical bill,

Disregarding medical bill, yes, if you spend your money on luxuries, you will have less of it.

> Second and more importantly, they are spending on whatever the fuck they want. You do realize you’re going to die, yes?

Ok, so, clearly people are spending their money, which is why they are paycheck to paycheck?

More income will result in higher expectations. Bigger house, more expensive car, branded clothes, eating out in fancier restaurants, etc. Some stuff you can hardly avoid like a mortgage.

I think most single people would have an easier time being frugal, but if you have a partner good luck with that. And if you have children you are stuck in the ratrace to send them to the most expensive schools and out of school activities.

If you would earn 250k, would you live in a trailer and take the bus to work?

I can hardly blame people. We are constantly bombarded with ads to buy buy buy. Max out your creditcards, invest in crypto, buy a boat, buy a car, fly around the world for holidays.

Before you know it you cannot get out anymore, no matter what your income is.

What the hell are (somwhat rich) people doing with their money?

Housing obviously. Many rich people like having big, nice houses/apartments. Some even want to have a second house somewhere nice. Travel and similar experiences can easily burn basically as much money as you want. Schools can also be super expensive. Eating out can also set you back a lot if you're into that sort of thing.

Food is an enormous expense unless you spend an enormous amount of time doing it all yourself which gives you less time to make $$ and still is expensive especially with the perishable ingredients and failed concoctions

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