There’s a reason the saying “If you have to ask for the price, it’s too expensive for you” exists.
That saying has more to do with poor people not having the purchasing power of rich people and less to do with rich people and their lack of stinginess.
A huge reason why lottery winners go broke is that they don’t earn more money
False. Most jackpot winners (and almost all of the ones that go broke), come from the lower and less educated classes. If they were to invest their entire prize in passive investments and live off the annual returns, they’d be earning far more money than any salary they could’ve ever hoped to achieve with their labor. These people don’t go broke because they don’t earn more money—they go broke because they squander multiple lifetimes worth of upper class earnings astonishingly quickly.
there are other rich people who do earn money and who spent it lavishly.
Not in the way that was described in the original example. Note that in philh’s comment, Alice “doesn’t actually care very much about having this $1000 loaf over a $1 loaf,” but decides to go ahead and drop $1,000 on it anyways. The overwhelming majority of ultra rich people don’t spend this way. And when they sort of do, they don’t stay ultra rich over the long run.
That saying has more to do with poor people not having the purchasing power of rich people and less to do with rich people and their lack of stinginess.
False. Most jackpot winners (and almost all of the ones that go broke), come from the lower and less educated classes. If they were to invest their entire prize in passive investments and live off the annual returns, they’d be earning far more money than any salary they could’ve ever hoped to achieve with their labor. These people don’t go broke because they don’t earn more money—they go broke because they squander multiple lifetimes worth of upper class earnings astonishingly quickly.
Not in the way that was described in the original example. Note that in philh’s comment, Alice “doesn’t actually care very much about having this $1000 loaf over a $1 loaf,” but decides to go ahead and drop $1,000 on it anyways. The overwhelming majority of ultra rich people don’t spend this way. And when they sort of do, they don’t stay ultra rich over the long run.