Money poll: The affluent mindset

money-cnn ^ | October 10, 2002 | Marion Asnes

[anncoulteriscool]

A majority of America's well-off households are independent, goal-oriented and confident.

NEW YORK (Money Magazine) - After a year in which Americans endured a terrorist attack, layoffs, a stock market swoon and news of billion-dollar corporate swindles, we wanted to gauge the mood of affluent Americans. Are they worried? What, if anything, are they changing about their financial lives? How much is enough to feel rich? What do they think their chances are of becoming wealthy? What's the best way to do it? What does affluence mean to them, anyway?

[anncoulteriscool]

There are other charts and graphs on the link...i dont know how to post pictures and graphs etc.,

[SamAdams76]

"These people are primarily self-made and they can't identify with being rich. They retain the middle-class values and lifestyle they grew up with, and even though they've accumulated millions, most live well below their means. If you've grown up in the middle class, that's who you are, even when you become wealthy."

Good article and I might add that the above paragraph best describes my situation. I grew up in a working class family and while I have done very well, I find it very difficult to spend my money. Even though I could afford to buy a luxury car like a BMW or Lexus, I prefer to get my cars used and pay cash for them. When we go out to eat, we prefer restaurants like the Outback or Applebees to those fancier places. I still get my clothes off the rack at Sears or other discount stores and we get most of our staple items at places like Wal-Mart and wholesale stores rather than those "yuppie emporiums" that you find at the mall.

I think it is because I do those things that I got to where I am in the first place. I know so many people who try to live an affluent lifestyle and end up deep in debt from which it will take many years to recover - if at all. Living below your means is the key to becoming affluent.

[mewzilla]

I know people who make above 75 grand. To a person they consider themselves middle class, not affluent. I think the difference in perception is important because it certainly affects things like tax policy.

[glorgau]

I make over 75K a year and still don't see how people can afford things like BMWs and Mercedes. All of it seems quite frivolous to me.

[OldFriend]

Like those who grow up trailer park trash and become grifters, they maintain that mindset to the bitter end.

[SamAdams76]

They are frivolous for most people. The only people who should be driving around in Mercedes and BMW's are those who have zero debt and have their financial independence assured for life.

[toddst]

I know people who make above 75 grand. To a person they consider themselves middle class, not affluent. I think the difference in perception is important because it certainly affects things like tax policy.

Current tax policy is infuriating, esp. if you are in this income range and have any accumulated assets. There is a "punishment factor" built in to trying to move up IMO. It's time to get policies in place that reward the productive, not punish them. I hope this is on George W's plate soon.

[Alas Babylon!]

Our houses are bigger, we own more technical gadgets, we eat out more often and we're more likely to travel around the globe. In a world where most people don't eat three meals a day, it seems almost absurd to suggest that the word wealthy does not apply.

Well, when does the redistribution start? There's enough food in the world to ensure everyone gets three square meals a day, but it is GOVERNMENTS, DICTATORS, and THUGS who keep the poor poor. Rather than blame folks here for others' poverty, perhaps we need to cleanse the world of those terrible threes above.

[alex]

"I know people who make above 75 grand. To a person they consider themselves middle class, not affluent. I think the difference in perception is important because it certainly affects things like tax policy."

I suppose that it is very important for Republicans that every family making over say $75k understood that it is considered rich by common political terminology of the day.

A couple months ago a co-worker who on my estimation makes at least $120k and I know his wife is working too. Was talking to me about those damn rich - I pointed to him that he is "damn rich" himself and all this class warfare rethoric is applicable to him. The co-worker is a pretty sharp guy in his late forties but it was never occured to him anyway.

[marktwain]

I think it is because I do those things that I got to where I am in the first place. I know so many people who try to live an affluent lifestyle and end up deep in debt from which it will take many years to recover - if at all. Living below your means is the key to becoming affluent.

Bingo. You hit it right on the head. I have a friend who lives very modestly. I suspect that he lives on about $10,000 a year. It is about the same amount that I live on, and I am quite comfortable. He is a multi-millionaire from consistant investment over several decades. I am not in his league, but feel quite comfortable. I have more toys than I have time to play with them, and most of my time is spent doing the things that I want to do.

My definition of being independently wealthy is to have enough independent income so as not to have to work for someone else in order to live. I am not quite there, but I am close.

My advise to anyone who wishes to improve their independance and their life.... STOP WATCHING TV.

[spectre]

Maybe your co-worker is living beyond his means? It's all relative, most people will spend what they make these days.

But I think the key to success, no matter how much money a person has, is to finally achieve their "level of comfort". The biggest example is when they say, "this house is just fine and I am comfortable in it", no matter if they can afford to buy one twice as nice...and to heck with how anyone else judges them for it..IMHO.

[SamAdams76]

My advise to anyone who wishes to improve their independence and their life.... STOP WATCHING TV.

I agree and probably not for the reason you are thinking. Yes, television is a total waste of time that can otherwise be spent on educating yourself or making money. But another real danger of television is instilling you with the desire for consumer products that you do not need. Yes, you are pounded with commercials but furthermore, the "sets" of the television shows portray lifestyles that are unattainable for most Americans. Fancy new cars, glamorous houses with their gleaming kitchens with huge appliances and their huge living rooms with expensive furniture, etc. Watch a few of these shows and you start feeling poor and sorry for yourself. So what do most people do? They go out and try to duplicate in their own lives the lifestyles they see on TV. For most, it will be an unsatisfying experience that will only lead them further into debt.

It is also my goal to have enough assets (and investment income) so that I do not have to work for somebody else in order to make ends meet. That is the true definition of being wealthy in my opinion.

[marktwain]

Watch a few of these shows and you start feeling poor and sorry for yourself.

We are probably rather close in our reasons for not watching TV. My standard response is "Why pollute the data stream?" Unfortunately, few people are willing to exercise the mental muscle that it takes to think independently. They pay for this lazyness by accepting the attitudes and opinions that are given to them by others.

[desertcry]

But of course, a penny save is worth atleast 2 cents earned, maybe more since the Govmt. takes more than 60% of earnings.

[desertcry]

Mercedes and BMW, why? The krauts never gave us support against saddam. Besides, Lexus and Acura are more reliable, and much less expensive to maintain, and operate(lower insurance too).

[Consort]

$ € £ ¢ ¥

[Bush2000]

$75K is affluent?!? Ridiculous.

[Cacique]

bump

[weikel]

Bump borrow money become a slave.