Over the past few years, inflation has increased the cost of living for many Americans. Many people are struggling to afford everyday necessities, and luxury purchases are completely out of reach for many.
But it's not just the lower and middle classes who are struggling to make ends meet. A recent study by LendingClub found that 49% of people making more than $100,000 live until their payday. This means that in 2024, there will be some things that even the wealthy will have a hard time affording.
Although inflation has subsided compared to its peak, many goods are still more expensive than last year. Let's take a look at some of the things that even the wealthy may stop spending money on in 2024.
Also see the resolutions that the rich never make.
private education
The cost of education, especially higher education and private education, has increased dramatically over the past few years. Unfortunately, this trend doesn't seem to be changing anytime soon. This could mean that people will not be able to pay for private education after 2024. Private schooling also loses some of its appeal when more affordable options like public education exist.
super yacht
Have you ever wondered what it would be like to sail the oceans on a $500 million superyacht like Jeff Bezos? Mr. Bezos probably isn't feeling the financial pinch, but many others are. Yachts are abandoning the idea of larger yachts due to the huge costs involved in maintaining them.
“With the rising cost of living, having a million dollars or even millions of dollars isn't what it used to be,” says Eric Croak, CFP, president of Croak Capital. “For example, modern superyachts often cost much more than their original multi-million dollar price tags. But the purchase price is just the beginning. Crew salaries, docks, fuel and maintenance. Ongoing costs can amount to around 10% of the yacht's value each year; for a $10 million superyacht, that's $1 million per year.”
second house
Home prices are likely to remain high in 2024 due to high interest rates and a lack of inventory. This may cause wealthy families to reconsider purchasing a second home. They may also rent out their homes for part of the year and shift their focus to investment properties that they can use at other times of the year.
luxury car
Car prices have increased significantly in recent years. The automobile market has not yet fully recovered. Luxury cars have always been a symbol of wealth. However, a 2023 study from Edmunds.com found that 17% of car payments exceed $1,000 per month. For many families, this is not realistic.
As people become more environmentally conscious, the appeal of owning expensive, gas-guzzling cars is diminishing. Instead, they're looking at electric cars, whose prices have come down to far more reasonable levels. Unless luxury car prices fall in 2024, even the wealthy may choose affordable electric cars instead.
high end fashion
High-end fashion has changed as consumers become more concerned about sustainability and ethical fashion. Luxury fashion as a status symbol is not the same as before. Moreover, trends change rapidly. Since most people spend more on everyday necessities, you may have a hard time seeing value in expensive clothes that can quickly become outdated.
luxury weddings and parties
Weddings have also fallen victim to inflation in recent years. What used to be expensive is now even more expensive. Even if you're trying to plan a more modest wedding, flowers, venue, food and drinks, and dresses can all add up quickly. Additionally, some wealthy people like to throw big parties.
“Being traditionally wealthy means being able to throw unforgettable parties that people will talk about for years to come,” says Croke. “While most people might organize a potluck or budget-friendly gathering, wealthy people often spare no expense. It's expensive. But even the wealthy are now rethinking such lavish parties, mainly due to the pandemic.”
limited membership
Exclusive club membership is often a sign of wealth. However, social norms are changing, and some exclusive clubs may be seen as outdated, elitist, or even racist. Young, wealthy players may be less interested in these traditional clubs and instead turn to more comprehensive and cheaper alternatives.
Residential staff
You don't have to be super wealthy to have your house cleaned several times a month. But wealthy people are thinking a little further ahead. They have a whole staff to manage the family. It's also becoming a little more affordable.
“Billionaires may be able to afford to help make ends meet, but now it's hard to afford to hire a full team,” Cloke said. “The entire staff includes the chief of staff, the management team, butlers, assistants, chefs, housekeepers, nannies, tutors, drivers and housemen.Depending on experience, this includes his 100 Can cost up to $1,000,000 [and] $2.5 million annually, excluding health benefits and bonuses. ”
traditional luxury watches
For decades, great watches have been considered status symbols. Wealthy people use luxury watches in the same way that they use expensive clothing to display their wealth. However, as technology advances, watches may become obsolete and wealthy people will be less willing to spend money on jewelry that is unlikely to serve a functional purpose.
conclusion
To those outside the upper class, it may seem that the rich can buy almost anything. But inflation has made almost everything more expensive than it was a few years ago, and even the wealthiest people are looking for ways to take a break.
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