I’m a relative newcomer to a comfortable, middle class life in the U.S. One of my biggest terrors is falling back into poverty. However, most of my friends and colleagues are all too happy to live beyond their means.
People I know who have large, immaculately well cared for homes with gardeners and German cars in the driveway live paycheck to paycheck. One realtor I know never sets aside enough money to pay her substantial tax bill (she is on payment plans to the IRS). From the outside they appear wealthy, but they are nearly always broke. The same realtor will happily pay $2000 for a pair of jeans.
I don’t get it. I make a great living. I paid off my house and drive a 2004 Outback. My retirement is looking good. This alleviates my fear of slipping into poverty. I guess I just don’t care about the window dressings of wealth that are so important for some people.
A software engineer might not need to impress anyone to advance their career. But I think some careers do require a person to first look successful in order to be successful (sales(real estate), management, law, many kinds of consulting). I don't know how much someone has to spend on appearance in those situations but maybe the people themselves don't know either and so over-spend just to be sure. Maybe the $1000 jeans would help your friend impress the truly wealthy and maybe they wouldn't.
Which isn't saying that some people don't compulsively and unnecessarily spend. But in mid-level careers, determining how much is over-spending may be hard (which increases the temptation to spend, naturally).
My situation is not so different from yours, and I wonder how common we are. Maybe a pretty large fraction of Americans live a thrifty life and are quietly baffled by our peers' extravagance.
People I know who have large, immaculately well cared for homes with gardeners and German cars in the driveway live paycheck to paycheck. One realtor I know never sets aside enough money to pay her substantial tax bill (she is on payment plans to the IRS). From the outside they appear wealthy, but they are nearly always broke. The same realtor will happily pay $2000 for a pair of jeans.
I don’t get it. I make a great living. I paid off my house and drive a 2004 Outback. My retirement is looking good. This alleviates my fear of slipping into poverty. I guess I just don’t care about the window dressings of wealth that are so important for some people.