Wasting money is a bad thing no matter your income.
But maintaining financial discipline becomes more difficult as your bank account grows. Here are five ways people tend to waste their wealth, from ditching budgets to paying full price.
1. Always Taking Care of the Bottle Service Tab
Bottle service is a big part of the nightclub experience. It’s also a must if you want VIP hospitality — and when you’re rich, that’s exactly what you crave. The service, however, comes with a steep price.
2. Buying or Renting Property They Rarely Visit
Buying a property is a good investment but only if you make use of it or turn a profit. But, some rich people are guilty of purchasing properties that they never really use. The same goes with renting.
3. Investing in the Wrong Startups
Investing in startups might be easier and cheaper than investing in already-established companies. However, the risks can obviously be quite high — which is why proper research should always be done first to see whether that startup is a smart idea.
4. Buying Ridiculously Expensive Cars for Kids
Spoiling kids with luxury cars. Although certain luxury cars might become classics, some might not be worth the hefty price tag, in the end, thanks to depreciation. The disproportionate majority of exotic cars more typically depreciate instantly when they roll off the lot yet rich parents are grabbing these flashy products for their wards.
5. Hiring Personal Chefs
Celebrities and the extremely wealthy are used to getting what they want — and food is no exception. They’re willing to dish out tons of cash to have personalized meals.
Personal chefs typically charge quite a lot, which means the total cost could come out to a few hundred dollars per meal. That doesn’t sound so appetizing, does it?
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