Current Events > My conservative grandpa said that poor people spend extra money on stuff.

(+) Yeah! (+)

But the wealthy invest extra money, and thats what separates them. Is he right?

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My grandpa told me to shut the fuck up when I asked him if your grandpa was right

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Your grandpa is likely obviously the type who is ignorant to the important details such as how the poor person doesn't have money to invest nor knows how to invest it properly..

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The problem isn't in spending extra money on stuff.

Stop.

Shitposting.

About.

Money.

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>Bulk is cheaper
>Immediate cost is too expensive for the poor
>poor people pay more for necessities

Your grandpa is right that they spend more, although they aren't paying more and avoiding investment by choice.

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What they do with extra money is only part of it. What they do with extra time is also important.

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Are rich people's homes technically an investment? Sure. But the planes, cars, and many other luxury goods only lose value. You can't call a private jet or a luxury sports cars an investment and poor people could never afford either of those.

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I mean... yeah, but not because they're like choosing to do it nessecarily
https://www.investmentzen.com/news/its-more-expensive-to-be-poor/

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Does he have a GFAQs account?

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Questionmarktarius posted...

The problem isn't in spending extra money on stuff.

Every year, poor people get a tax return. And most buy a PS5 or something instead of putting that money into an S&P 500 index fund.

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Its more expensive to be poor than rich. for example, rich people will buy a house and make payments towards owning the house. Poorer people will rent, and that money just disappears

Your grandpa needs to be canceled for being racist.

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True. Invest and let it grow and buy less junk. I know a guy who won $250K in the lottery. He had a small house with a low mortgage so he paid that off then bought "toys" like ATVs which break down easily and he still works a meh job. He said no point in investing due to taxes and fees...He could have put that money he won 5 or 10 year ago into Bitcoin. Or bought houses to rent out.

Poor mindset people whine about fees and taxes. They just don't get it in terms of holding and long term gains. It's like the story of the rabbit and turtle. I've talked to many middle class and they all say how they'd spend millions if they won the lottery. Not many mentioned investing a good portion. Yolo is what they lean towards.

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Orlando_Jordan posted...

Every year, poor people get a tax return. And most buy a PS5 or something instead of putting that money into an S&P 500 index fund.

Most poor people I've met use the tax refund for bills or things they put off for Christmas etc.

If you're a structural functionalist, or a conflict theorist, poor people are a fact of life

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More or less.

To be wealthy is to be able to hold off pleasure for long term.

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Hes right weather most here want to admit it or not. The poor in general, more so most in higher income brackets cannot delay gratification, which is why many of them end up losing it all they suddenly aquire a ton of money and survival is no longer their top priority.

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back In my day phone bills were $8

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Rich people break the speed limit and they just pay it off with their toilet paper made of hundred dollars bills.

Poor person breaks the speed limit and they lose 50-90 percent of a weeks paycheck.

Rich person invests and gets 10% on a thousand dollar investment, gets a hundred dollars. Also, that thousand dollars was just change they had lying around.

Poor person invests a hundred dollars and gets ten dollars back on their investment. Also, that hundred dollars had to be saved over multiple weeks as the rest of their money paid bills and put food on the table.

but then the investment has to be prematurely withdrawn to pay off that traffic ticket.

it is great that the system enables stories like I couldnt even afford to keep my dick attached to my body but I worked my way up and now I have a solid gold dick with Diamond balls

but those stories are the exception and not the rule. Trying to use them
to justify how broken everything is is just survivorship bias

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WashYourHands posted...

back In my day phone bills were $8

to be fair his salary was also only $50

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all I know is whenever I have a good year I think of where Im gonna invest all the extra capital, buying a new car or stuff like that doesnt cross my mind, Ill drive a 15 yr old car until I have 100millions for all I care

so hes right to some extent, but some people just dont work smart enough to make good money to begin with so theyre fucked, cost of life too high nowadays

Kloe_Rinz posted...

Its more expensive to be poor than rich. for example, rich people will buy a house and make payments towards owning the house. Poorer people will rent, and that money just disappears

my buddy keeps telling me Im dumb for buying a house and says very wealthy people always rent everything, although atm the interest rate are soooo low that buying is quite alright

Very wealthy people rent everything? Interesting take

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BilalPowell posted...

Very wealthy people rent everything? Interesting take

most of the time yeah, some will buy a house but most are renting, rent cars, rent appartments, pretty luxurious appartments but still renting, it allows them to hold on to more capital to invest

I think the term you're looking for is 'lease', and no .out wealthy people don't do that as it's wasteful of money.

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Buying is just paying yourself at a later date though like an IRA. Renting is giving someone money you'll never see again.

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BilalPowell posted...

Buying is just paying yourself at a later date though like an IRA. Renting is giving someone money you'll never see again.

youre not really paying yourself at a later date though because youll always need a place to stay, and while your house is gaining value, so are all the other houses on the market thus if you move you dont gain anything even if your house is worth 150k more than when you bought it

BidenSyriaBomba posted...

I think the term you're looking for is 'lease', and no .out wealthy people don't do that as it's wasteful of money.

I mean you dont have to believe me, I do know people worth 10m+ who do not own their place or the car theyre driving

ROOTFayth posted...

I mean you dont have to believe me, I do know people worth 10m+ who do not own their place or the car theyre driving

Huh, well I do know wealthy people can put their houses and vehicles into LLCs which separates the items from themselves as a form lawsuit protection.

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I believe that is usually done mostly for tax deduction

BilalPowell posted...

to be fair his salary was also only $50

$50 was salary in the 80s?

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much of our economy is reliant on the working class spending slightly extra so I'm always stumped by hyper capitalists who seem to be offended by people *gasp* spending their money.
probably expecting too much for a class of people who think Donald fuckin Trump is some grand genius though

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Is his name Dave Ramsey?

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Unsugarized_Foo posted...

Is his name Dave Ramsey?

Dave just gets people who are already bad spenders to stop. He doesnt do much for people who aren't in debt.

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Wtf cares what people do with their own money?
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Put your 15% into retirement and buy a house on a 15-year mortgage and don't you dare ish it

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I think most of CE is willfully delusional with topics like this. Ive known people who just live on welfare and food stamps with straight up zero savings. The concept of saving money for years, let alone months, at a time is basically foreign to them. And yes, I get it, they dont get much money and what they do get goes quick. But when you live your life like that, you never learn how to manage money. It just becomes this commodity that, if you have it, you should use/spend it. And that type of thinking does land normal people on the street.


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masticatingman posted...

I think most of CE is willfully delusional with topics like this. Ive known people who just live on welfare and food stamps with straight up zero savings. The concept of saving money for years, let alone months, at a time is basically foreign to them. And yes, I get it, they dont get much money and what they do get goes quick. But when you live your life like that, you never learn how to manage money. It just becomes this commodity that, if you have it, you should use/spend it. And that type of thinking does land normal people on the street.

yes you genuinely don't qualify for aid programs with large amounts of savings, again a key aspect of entitlement programs is so people have extra money to stimulate the economy (and to you know prevent large amounts of the populace from starving and being homeless)

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Grandpa also says the only place you need to be if your broke is at work.

AtelierRyza3462 posted...

Grandpa also says the only place you need to be if your broke is at work.

He's not wrong.

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