High spenders what do you spend on?

Questions on how we spend our money and our time - consumer goods and services, home and vehicle, leisure and recreational activities
Workaholic
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Re: High spenders what do you spend on?

Post by Workaholic »

Do any high-spenders here utilize Netjets products? Particularly the jet card. Just out of curiosity...

I'm not in the ballpark yet to be able to comfortably afford that type of product but it would be an intriguing idea if my NW ever hits somewhere around $5 million or so. I'd love to be able to skip the airport headaches, connections, horrible domestic business-class seats, and frustrating airline policies.
Firemenot
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Re: High spenders what do you spend on?

Post by Firemenot »

I don’t think a 5 million NW is near enough to start using Netjet.
Firemenot
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Re: High spenders what do you spend on?

Post by Firemenot »

Children. Lessons, schooling, restaurant meals, etc. I spend well over 1k a month on lessons of various sorts. Gymnastics, riding, piano, etc. long-term gymnastics has totally been worth it. Good fitness, self-esteem, seeing value of hard work as learn new skills, etc.
Last edited by Firemenot on Mon Apr 05, 2021 2:24 pm, edited 1 time in total.
stoptothink
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Re: High spenders what do you spend on?

Post by stoptothink »

Firemenot wrote: Mon Apr 05, 2021 2:20 pm I don’t think a 5 million NW is near enough to start using Netjet.
STARTING at $165k+ for 25hrs, plus FET and fuel charges; yeah, I wouldn't be remotely considering it unless I'm in 8-figures.
Workaholic
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Re: High spenders what do you spend on?

Post by Workaholic »

Firemenot wrote: Mon Apr 05, 2021 2:20 pm I don’t think a 5 million NW is near enough to start using Netjet.
If you're employed and earning a decent salary? I'm not talking about being retired and living off your nest egg which will still grow considerably over time.

Regardless of the number people are or are not comfortable with utilizing such a service, I'm curious if anyone on this forum has real experience with their products/services and would care to give some insight.
Firemenot
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Re: High spenders what do you spend on?

Post by Firemenot »

Workaholic wrote: Mon Apr 05, 2021 2:33 pm
Firemenot wrote: Mon Apr 05, 2021 2:20 pm I don’t think a 5 million NW is near enough to start using Netjet.
If you're employed and earning a decent salary? I'm not talking about being retired and living off your nest egg which will still grow considerably over time.

Regardless of the number people are or are not comfortable with utilizing such a service, I'm curious if anyone on this forum has real experience with their products/services and would care to give some insight.
I suppose a 7 figure salary, 5 million in NW, and a long remaining work life might work. I wouldn’t do it though. Unless maybe it helped drive income by impressing clients, etc.
Last edited by Firemenot on Mon Apr 05, 2021 2:35 pm, edited 1 time in total.
Workaholic
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Re: High spenders what do you spend on?

Post by Workaholic »

stoptothink wrote: Mon Apr 05, 2021 2:24 pm
Firemenot wrote: Mon Apr 05, 2021 2:20 pm I don’t think a 5 million NW is near enough to start using Netjet.
STARTING at $165k+ for 25hrs, plus FET and fuel charges; yeah, I wouldn't be remotely considering it unless I'm in 8-figures.
Again...everyone has their own opinion of what NW they would be comfortable with utilizing their service. I would feel $5 million would be an adequate starting point to consider a service such as Netjets.
Firemenot
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Re: High spenders what do you spend on?

Post by Firemenot »

Workaholic wrote: Mon Apr 05, 2021 2:35 pm
stoptothink wrote: Mon Apr 05, 2021 2:24 pm
Firemenot wrote: Mon Apr 05, 2021 2:20 pm I don’t think a 5 million NW is near enough to start using Netjet.
STARTING at $165k+ for 25hrs, plus FET and fuel charges; yeah, I wouldn't be remotely considering it unless I'm in 8-figures.
Again...everyone has their own opinion of what NW they would be comfortable with utilizing their service. I would feel $5 million would be an adequate starting point to consider a service such as Netjets.
I’m almost there but it would represent way too large a percentage of my income. And I’m relatively young. Would be crazy basically.
mtn biker
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Re: High spenders what do you spend on?

Post by mtn biker »

I bike, which involves me owning 6 bikes for various sorts of biking, tons of equipment for various sorts of biking, and race entry fees and travel for all the races. I also spend a lot on beer, often biking to breweries to visit and try them out. Eating out is another one, I don't always spend a lot on this, but I'm happy to spend what it takes to get quality and enjoyable food, often unique sorts that I'm not used to making at home.

Without the biking hobby I could probably retire a few years sooner, or if I gave it up in retirement I could probably retire now. But why would I live a life without the hobby I love so I can avoid a job I enjoy? We all have our various situations and circumstances, hard to really compare.
Workaholic
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Re: High spenders what do you spend on?

Post by Workaholic »

Firemenot wrote: Mon Apr 05, 2021 2:37 pm
Workaholic wrote: Mon Apr 05, 2021 2:35 pm
stoptothink wrote: Mon Apr 05, 2021 2:24 pm
Firemenot wrote: Mon Apr 05, 2021 2:20 pm I don’t think a 5 million NW is near enough to start using Netjet.
STARTING at $165k+ for 25hrs, plus FET and fuel charges; yeah, I wouldn't be remotely considering it unless I'm in 8-figures.
Again...everyone has their own opinion of what NW they would be comfortable with utilizing their service. I would feel $5 million would be an adequate starting point to consider a service such as Netjets.
I’m almost there but it would represent way too large a percentage of my income. And I’m relatively young. Would be crazy basically.
I've always found Netjets a fascinating concept and recently had the opportunity to fly a couple segments utilizing Netjets contracted through a business I am working with. Absolutely blew my mind which made me genuinely curious about the cost and real-world experience of those who choose to purchase their jetcard. I've flown a corporate private jet and it was fairly lackluster- basically I found it to be a tad better than domestic business class in terms of a hard product. However the Netjets plane left me quite impressed- spacious, comfortable, numerous features that were quite useful, etc. I want to say it was a Challenger 350...midsize jet. Plus nothing beats flying into a private terminal and being on your way in 5 minutes.
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TomatoTomahto
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Re: High spenders what do you spend on?

Post by TomatoTomahto »

Workaholic wrote: Mon Apr 05, 2021 2:35 pm
stoptothink wrote: Mon Apr 05, 2021 2:24 pm
Firemenot wrote: Mon Apr 05, 2021 2:20 pm I don’t think a 5 million NW is near enough to start using Netjet.
STARTING at $165k+ for 25hrs, plus FET and fuel charges; yeah, I wouldn't be remotely considering it unless I'm in 8-figures.
Again...everyone has their own opinion of what NW they would be comfortable with utilizing their service. I would feel $5 million would be an adequate starting point to consider a service such as Netjets.
I have got to say that I can’t even seem to get agreement with family to book business class, much less first class or private.

We briefly considered it pre vaccination, but we just can’t seem to pull the trigger.

So, we “considered” it and declined it 😁
I get the FI part but not the RE part of FIRE.
alfaspider
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Re: High spenders what do you spend on?

Post by alfaspider »

Workaholic wrote: Mon Apr 05, 2021 2:35 pm
stoptothink wrote: Mon Apr 05, 2021 2:24 pm
Firemenot wrote: Mon Apr 05, 2021 2:20 pm I don’t think a 5 million NW is near enough to start using Netjet.
STARTING at $165k+ for 25hrs, plus FET and fuel charges; yeah, I wouldn't be remotely considering it unless I'm in 8-figures.
Again...everyone has their own opinion of what NW they would be comfortable with utilizing their service. I would feel $5 million would be an adequate starting point to consider a service such as Netjets.
You'd need a lot of income to do it on $5MM net worth for very long. I certainly wouldn't do it at $5MM net worth as a retiree.

I suppose the expense makes a lot more sense if you are constantly flying a larger family business/first class. The price makes a lot more sense when it's an alternative to 6x 1st class tickets instead of one. If you always fly as a group and the flights are ~2 hours on average, then Net Jets could be "only" roughly twice the price of commercial first class.
MarkerFM
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Re: High spenders what do you spend on?

Post by MarkerFM »

We use NetJets only for limited trips and share the card with someone else. Not a Challenger, those are quite a bit more expensive. Not going to go into details on income or net worth, but I'm retired and let's say it's affordable in our circumstances. Very nice way to travel. Did charters for awhile, but the NetJets product is superior even though a fair bit more expensive. Just the two of us are flying, and it's way more expensive but way more convenient (think one small out-of-the-way airport to another) than commercial.
SQRT
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Re: High spenders what do you spend on?

Post by SQRT »

Firemenot wrote: Mon Apr 05, 2021 2:20 pm I don’t think a 5 million NW is near enough to start using Netjet.
I once read that the average Netjet member had a net worth of around $85 million. So I would say $50million might be a lower bound?

I guess it really depends on what proportion of your income you would want to spend on private flights within North America? Any more than 5-10% would seem pretty high to me? Also, how much do you hate the public experience and whether you could write any of it off against your income taxes.

I know the experience is a quantum leap above regular first class.
TheNightsToCome
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Re: High spenders what do you spend on?

Post by TheNightsToCome »

MAKsdad wrote: Mon Apr 05, 2021 12:36 pm
stoptothink wrote: Mon Apr 05, 2021 8:39 am
Normchad wrote: Sun Apr 04, 2021 9:19 pm
delamer wrote: Sun Apr 04, 2021 10:01 am
523HRR wrote: Sat Apr 03, 2021 6:17 pm Highest spending category is Taxes. Next spending category is not even close.
So true...
Last year, taxes exceeded all of my other spending, combined. Looking forward to early retirement, and 7-10 years of paying zero in taxes......
We're not even high income (for Bogleheads, ~$230k/yr HHI) and I think this was the case for us in '20 as well.
2020 taxes paid were ~6 years of spending for all other items.
Likewise, taxes were many times spending for us.
solarcub
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Re: High spenders what do you spend on?

Post by solarcub »

gr7070 wrote: Sun Apr 04, 2021 11:38 pm
Though apparently I'm enjoying chopping out a huge stump; as I'm unwilling to pay for a grinder to come out.
Me too! I think it's because I read Shane when I was a kid. Never let the stump win.
pivoprussia
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Re: High spenders what do you spend on?

Post by pivoprussia »

OP - thanks for this post. I find this very interesting as I too wonder how others spend money. I also spend 150k+/year but the numbers say
We can spend much more. So I’m curious to see what high spenders are enjoying that I might have overlooked. But I’ll add the best part of having some money is the security is gives you, not the stuff you can buy.

Here are some of mine:

1 - agree with many that charitable causes are a great way to spend.
2- building a house now and spending extra on appliances (wolf, subzero), 7” white oak floors, foam insulation, lots of cat6, etc
3- experiences - our version of this is travel. We traveled across country recently. We sometimes fly business if it’s relatively reasonable. This is my favorite way to spend money. Time with family and friends, wonderful places, stories that result - all amazing.
Been to many countries around the world and did an African photo safari. This stuff produces priceless memories.
4 - cars - I hate to admit it but I do love high end cars. I only get one every so often and don’t put lots of miles on it so the marginal cost is relatively low and worth the fun for a while.
5 - education - don’t need to explain this one.
6 - pets - get back way more than any cost
7 - wine, restaurants, etc. - these really fall into the experiences category for us. Sure I love a Bordeaux but not drinking Ch. Latour on a regular basis. But I have had it and it was incredible.

In the end - my 2 cents is to ramp up expenses on experiences if you’re already doing charitable funding. Dollar for dollar the best money I’ve ever spent.

Cheers
RadAudit
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Re: High spenders what do you spend on?

Post by RadAudit »

Taxes. Made a few mistakes on location of assets (tIRA vs Roth)
Reinvestment of difference between RMD and SWR. Wife is extremely reluctant to commit to only living a set number of years in retirement. Kids want us to help with the grandkids' education and other things.
LTC insurance.
Charities
Vacations
FI is the best revenge. LBYM. Invest the rest. Stay the course. Die anyway. - PS: The cavalry isn't coming, kids. You are on your own.
Shalom Aleichem
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Re: High spenders what do you spend on?

Post by Shalom Aleichem »

lightheir wrote: Wed Mar 31, 2021 10:46 am Not typically big spender here but I just dropped $7k+ on a bicycle :shock:

To be fair, the 'other' bike I was looking at was $12k!
What did you get? I ride a pivot Mach 429 on mountain trails in Los Angeles.
lazybones18
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Re: High spenders what do you spend on?

Post by lazybones18 »

for me:

Vacations or weekend getaways which includes staying at nice hotels, dinners, food and drinks
Trying to pick up new hobbies e.g. just dropped about 3-5k on bicycle and gear
dinner/lunch with friends at nice restaurants on weekends
Partying and going all out at least once a year in places like vegas, Miami or Mexico
gadgets such as TV, cars, computer accessories and other new electronics
boogiehead
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Re: High spenders what do you spend on?

Post by boogiehead »

Tingting1013 wrote: Mon Mar 29, 2021 10:07 am Recently we have seen some posts of folks spending $150-$200k/yr, excluding housing, college tuition and daycare.

If you fit this description, I’m genuinely curious, what are you actually spending your money on?

For reference my HHI is $700-800k, excluding housing and daycare and charity, my spend is only $50k/year.

What am I doing wrong?
OP would love to get an update from you in a few months to see if you adopted any of these recommendations, and if so, how satisfied were you with the luxury spend?
rjbraun
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Re: High spenders what do you spend on?

Post by rjbraun »

Tingting1013 wrote: Mon Mar 29, 2021 1:15 pm Thank you LadyGeek.

To be clear, I am looking for what high earners spend their discretionary income on, excluding these items:

- housing
- education / childcare
- charity

This is personally actionable as I am considering how to ramp up my own discretionary spending.
- fine jewelry
- collecting art
- fine dining / wine, including hosting gatherings for friends and families, perhaps including stays at European villas, etc.
- high-end travel, including customized trips tailored to your particular interests, concierge-on-call for assistance, etc.
- one-on-one training or instruction tailored to your interests, hobbies, etc.
- expensive hobbies, such as boating or sailing (including boat ownership), horseback riding (with trainer), skiing (US and in Europe), etc.
- fancy cars
- high-end tech gadgets, audio equipment, etc.
- outsourcing things like gardening, landscaping, home maintenance -- unless you enjoy these things, not only do you avoid them but a professional could do a better job
jeroly
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Re: High spenders what do you spend on?

Post by jeroly »

The fatFIRE subreddit has lots of threads discussing this sort of thing - you’ll probably get some ideas there.
CoAndy
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Re: High spenders what do you spend on?

Post by CoAndy »

My membership at a nearby CrossFit box is $135 a month. But I really love it and usually go 4-5 times a week, so definitely get my $ worth. Have been more consistent with my workouts since I joined in May 2019 than I ever have. Wife has a pilates membership that is a bit more.
reader79
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Re: High spenders what do you spend on?

Post by reader79 »

I just want to chime in and thank the OP for raising the question. We are facing a similar situation --- annual spend right now of only about $41k but a retirement income of $350-400k --- but we still have a few years before we get there. So, we are devoting our time now to discover and prioritize what we want to spend our time doing when we decide to no longer work for money. It is a tough exercise. For me, it has been getting the VIP packages for concerts, more frequent trips to see family members and friends (emphasizing time spent with others rather than the comfort of the airplane seat we use to get there), planning thru-hikes of major trails in and out of the U.S. (Appalachian Trail, Pacific Crest Trail, Continental Divide Trail), buying nicer musical equipment and one-on-one lessons, and purchasing lots of online courses to feed my lifelong learning bug. These things will take years to build up, but I think it will make spending a lot easier.
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White Coat Investor
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Re: High spenders what do you spend on?

Post by White Coat Investor »

Tingting1013 wrote: Mon Mar 29, 2021 10:07 am Recently we have seen some posts of folks spending $150-$200k/yr, excluding housing, college tuition and daycare.

If you fit this description, I’m genuinely curious, what are you actually spending your money on?

For reference my HHI is $700-800k, excluding housing and daycare and charity, my spend is only $50k/year.

What am I doing wrong?
Well, the mortgage is gone, but we still have property taxes. That's about $4K a year.

We don't have any kids in college or daycare.

We give a lot to charity and obviously pay a lot in taxes.

We save a lot and give to others too.

But above and beyond all that, we probably still spend in the $150-200K range. Where's it all go? Who knows and who cares? It's a small fraction of our income.

Right now on our main credit card (paid off automatically every month), we have over $8,000 in expenses. Let's look at some of the larger ones:

$536 deposit on a camp we're running this summer
A $1,115 payment for soccer trophies for a league (that'll be reimbursed)
A couple of $125 payments to health professionals
$342 to change the boat impeller
Somebody bought $182 in clothes at Eddie Bauer
$167 at Walmart, probably groceries
$1200 for a drysuit
$200 payment to a hair salon, probably haircuts for my wife and a kid or two
$1100 car repair
$420 at costco, groceries
$220 at Lands end, probably clothes
$182 for a hotel room on a recent trip to go backpacking (we stayed int eh hotel the first night)
$158 for auto parts, I think brake pads and a disc
$135 for a helmet
$380 for more outdoor gear for an upcoming trip
$266 for more outdoor gear
$158 for more outdoor gear
$261 at Wal mart, probably groceries and household goods
$224 at Dicks sporting goods. Not sure what that is, some things for one or more of the kids all of whom play sports
$155 at the children's clothes store
$151 for the pediatrician
$125 for the dermatologist
$125 for another healthcare professional
$127 at another grocery store
$107 at target, clothes?
$107 at home depot. No idea what that was.
$124 at another grocery store.

Gasoline goes on another card. That's not too high in the Winter, but is always over $1,000 a month in the summer due to the boat and road trips.

This is actually a relatively low spending month for us, but you can see how we certainly don't spend anywhere near $50K a year.

Why do we spend so much? Because we just buy what we want to buy because we know we can afford to do so.
1) Invest you must 2) Time is your friend 3) Impulse is your enemy | 4) Basic arithmetic works 5) Stick to simplicity 6) Stay the course
OCDinvestor
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Re: High spenders what do you spend on?

Post by OCDinvestor »

Tingting1013 wrote: Tue Mar 30, 2021 9:33 am
mikejuss wrote: Tue Mar 30, 2021 9:30 am
Tingting1013 wrote: Tue Mar 30, 2021 9:00 am
mikejuss wrote: Tue Mar 30, 2021 8:39 am This has gotta be the weirdest thread I've read on this forum. :?:
I don’t see any difference between my thread and these threads:

What lifestyle creep made you happier?

What is the BEST thing you spent money on?

Except for a higher barrier to entry
With all due respect, it seems odd that a person wouldn't know how to spend his own money. It doesn't take much imagination. Or is there a particular product, or a genre of product, that you're thinking of investing in and are unsure about?
For Bogleheads who take more joy in saving than spending, it shouldn’t seem odd at all.
I don’t quite understand those slamming this thread. I’ve enjoyed reading through it. The BH mentality begets a frugal lifestyle, it can be hard to shake once you’ve got your financial ducks in a row.
chicagoan23
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Re: High spenders what do you spend on?

Post by chicagoan23 »

One value of this thread is for posters to review what you actually spend money on, and make sure that spending is intentional. It's always amazing to see how money can leak out even when you don't know about it or get any value from it.

On $300k of income last year, we spent around $200k. That seems outrageous to me, but not so much when I break it down:
  • Necessities
    $60k: taxes (income, self-employment and property, but not sales or similar consumption taxes)
    $26k: health (mostly health insurance premiums but also kids ER visits and unusual dental and eye care expenses)
    $25k: food (groceries plus take out and dining out for a family of six)
    $21k: mortgage payments
    $9k: utilities and similar bills for living necessities (home internet, cell phone, electric, gas, cable tv, garbage, water/sewer)
That leaves roughly $60k (plus we could cut our food bill probably in half if we really wanted to)
  • Miscellaneous/Discretionary
    $16k: home improvement and updated furniture
    $15k: travel
    $12k: other shopping (clothes, electronics, sporting goods, household goods, etc. for six people, plus gifts for other friends and family)
    $5k: kids activities
    $4k: housekeeper/lawn service
    $4k: charitable donations
    $3k: life/home/auto/property/disability/umbrella insurance
    $1k: transportation (gas/parking/tolls etc.)
    $3k: miscellaneous spending not easily categorized
I'd suggest to the OP that a breakdown like this would allow him or her identify those things that create value from spending. Once identified, and given that there are no practical budgetary concerns in light of the stated income, I'd suggest a target of at least a 300% increase in spending in those valued categories. If that spending doesn't result in tangible value or happiness, then cut back to current spend rates in future years and try somewhere else.

I'd also suggest that higher spending now on things that last (real estate, durable goods, etc.) can also be a good inflation hedge. In other words, increasing spending is a good financial strategy.

If I spent more, I'd like it to be on travel and home improvement. Home improvement will be higher this year for sure. I would like to cut shopping, utilities and food costs where possible. And while I hate spending on taxes and health insurance, I already cut those as much as possible.
Last edited by chicagoan23 on Fri Apr 09, 2021 12:39 pm, edited 1 time in total.
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rjbraun
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Re: High spenders what do you spend on?

Post by rjbraun »

I try to use increased wealth to free myself of thinking excessively about what something costs. So, say I can save money by booking transportation in advance, and even avoid penalties if I need to rebook, I am still trying to 'not sweat the small stuff' and maybe just book the higher fare which comes with greater flexibility. That frees me up from the mental energy of having to keep track of stuff. Actually, that can be good for my health, anyway, in which case it may still save me money in the end!
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