Table of Contents Show
- What Do Rich People Do With Their Money?
- Stuff Rich People Buy For Their Home When They Make Money
- Hobbies Only The Rich Can Afford
- Final Thoughts
- Editor’s Recommendation
Stuff rich people buy for their homes when they become rich can be as simple as a luxury bathroom remodel. They may crave a revamped man cave or shed to hang out in. Or they can go to the game or media room to entertain guests.
The stuff rich people buy is only limited by their imagination. Some people may have to deal with the guilt of overspending. Don’t worry; it’s left over from when there was a lot of money.
Whether you need to splurge or are easy to splurge on extravagant gadgets, there’s no end to fabulous finds for the cash-strapped.
What Do Rich People Do With Their Money?
Many, perhaps most, millionaires are thrifty. If they spent their money, they would have no means to increase their wealth. They spend on essentials and some luxuries, but they save and expect their entire families to do the same.
Many millionaires keep much of their money in cash or highly liquid cash equivalents. Before they start investing, they create an emergency account. Millionaires bank differently than we do.
Any bank accounts they have are maintained by a private banker who probably also manages their wealth. There is no line at the checkout.
Research shows that millionaires can have up to 25% of their money in cash on average. This is to offset any downturns in the market and to have cash available to insure your portfolio.
Cash equivalents, financial instruments that are nearly as liquid as cash are popular investments for millionaires. Examples of cash equivalents are money market mutual funds, certificates of deposit, commercial paper, and treasury bills.
Some millionaires keep their cash in Treasury bills, which they keep returning and reinvesting. They liquidate them when they need money. Treasury bills are short-term bills issued by the US government to raise money.
Treasury bills are usually bought at a discount. When you sell them, the difference between the face value and the sale price is your profit.
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Stuff Rich People Buy For Their Home When They Make Money
If you want to trick out your home with smart devices, then the hub functions as a control center. Here’s the thing, you may need more than one, depending on the size of your new home. This set of three TP-Link Smart Hubs covers up to 6,500 square feet.
Internet, Wi-Fi and a router will also cost more; however, money is not an object for those who enrich themselves with it. So, depending on the size of your new mansion, the price can range from $800 to $5,000. In addition, there is a monthly fee for setting up the hub configuration.
Live Life with a Smart Sound System
One of the 50 things people buy for their homes when they get rich has to be a new sound system. You’ll want the technology to integrate with your smart home features.
From Amazon’s Echo Studio to Marshall’s advanced Stanmore II Voice (Alexa-compatible), there are plenty of high-quality single-speaker options for a smart sound system ranging from $200 to $400 each.
There are home entertainment systems as well as a home theater system that you can afford if you are wealthy.
In addition to a sound system, someone who has become wealthy can afford a home theater system that is more like a real theater. There’s no need to go public when you can have the same experience in the comfort of your own castle.
Gold/expensive bathroom accessories
We all need to visit the bathroom at some point, so why not surround yourself with luxury while you go about your business? Rich people bought golden toilet bowls and other expensive things for washrooms.
You can buy an 18-carat gold-plated toilet for the low price of $30,000. You can also buy other expensive bathroom accessories, from bidets to TVs that fit everywhere to heated toilets. If you ever want to have fun, you can look up expensive bathrooms to see what the rich can afford.
Since we’re talking about gold, you know you’re rich if you have a gold credit card and other gold-plated items at home.
Kopi Luwak Coffee
We’ve all complained about the price of Starbucks coffee, but can you imagine paying $100 for a cup of morning coffee? This is what Kopi Luwak is worth if you are looking for the ultimate coffee experience.
This caffeinated drink is so expensive due to high demand and limited supply, a surefire way to attract rich people to the product.
This coffee is unique because the beans are the droppings (commonly called “cat poop”) of the Asian Palm Civet, a feline creature that digests the beans and removes their bitterness.
This coffee is extremely rare, and with its incredible flavor, you’ll want to add it to your to-do list when you want to splurge.
Theater Projector & Seating
Projectors create an atmosphere in the home theater incomparable to conventional television. When a person strikes it rich, they can afford to drop $6,000 to $20,000 to install a 4K wireless smart digital projector in their room.
To complete the experience, a luxury home theater should also have quintessential theater seating. Check out these three-abreast theater seating. The kit costs from $900 to $4,000.
Not bad considering that theater seating at home will be the same or better than state-of-the-art public theaters.
Ultimate Game Room
When people become rich, they often think about all the entertainment they can buy with their newfound wealth. That’s why the best game room should be on this list.
Ultimately, how much a game room costs depends on the equipment; it can easily cost between $10,000 and $50,000. There are so many games that we could add to the room, but let’s focus on two popular ideas.
Who wouldn’t want a V.R gaming chair? Virtual reality takes it to another level when you have the money to buy props to enhance the experience.
A VR chair costs between $800 and $3,000 and up. The VR headset is separate and will set you back between $400 and $4,000 depending on the accessories you buy.
Tickets to outer space
Many people worry about collecting miles and traveling in the off-season to afford their annual vacation. Meanwhile, some super-rich are thinking about how to leave the planet.
One of the most expensive things the rich buy are tickets to outer space, a tourist attraction that’s not as crowded as the Eiffel Tower, but far more exciting.
Virgin Galactic has opened space tickets to the public for $450,000 each, well above the original price of $250,000. We’re not sure if the increase in flights is due to increased demand or inflation, but that’s a huge amount of money to spend on your next trip.
The flight lasts about 90 minutes, when you will feel weightlessness and see a fantastic view of the Earth from such a height. There’s no doubt about it—you’d have to be extremely rich to even think about leaving Earth.
There is a long list of celebrities who buy private islands for their personal use or turn them into luxury resorts. Sir Richard Branson bought Necker Island in the British Virgin Islands in 1979, turning it into a luxury resort.
Many other rich and famous have followed suit by purchasing their own private islands. Leonardo DiCaprio purchased his private island near Belize in 2005. Larry Ellison, co-founder of Oracle Corporation, purchased 98% of the Hawaiian island in 2012.
If we talk about private islands, you have to get there somehow. Wealthy people can afford to arrive in style on yachts. And since ordinary yachts are no longer suitable, many of the ultra-rich are buying superyachts, which sell by the hundreds every year.
So what differentiates an ordinary yacht from a superyacht? There is no technical definition of a superyacht, but it can usually accommodate more than ten guests and has the same benefits as a luxury villa.
With so much luxury available on one ship, it’s hard to argue with the idea that superyachts are symbols of wealth.
Hobbies Only The Rich Can Afford
Polo, a team sport played on horseback, is a favorite of the royal family. So it is not surprising that it is also an expensive hobby.
For example, a full membership at the Detroit Polo Club costs $3,000 a year. And that doesn’t include the purchase price of the horse, which can be as high as $250,000 for a polo pony, the Boston Globe reports.
Race Car Driving
If you have an adventurous side and a love for cars, driving a high-performance racing car can offer incredible fun as you race around the track. But don’t get too excited. According to Nascar Racing Experience, it can cost up to $950 for three eight-minute driving sessions.
Big Game Hunting
Hunting does not have to be an expensive hobby. But if you want to hunt big game, be prepared to empty your wallet. The thrill of hunting lions, elephants and other large animals can cost tens of thousands of dollars. And some hunting expeditions can cost up to $70,000, USA Today reports.
Taking a ballroom dance lesson here or there probably won’t break the bank. But if you turn ballroom dancing into a serious hobby and start competing, the cost of competitions, lessons, transportation and other expenses can reach $10,000 a year, according to CostHelper.
That’s not too surprising considering that competitive dance lessons alone cost between $50 and $200 per couple per session.
A trip to the racetrack and a pond does not necessarily have to be a budget expense. But if you want to breed, train and race your own horses, it can cost a lot of money.
The average value of a racehorse in 2015 topped $65,000, according to The Jockey Club, a horse racing and breeding organization. The cost of this hobby increases if you add food, care and housing to the price.
Also, according to NBC New York, training bills at a mid-level to high-level racetrack can cost anywhere from $30,000 to $50,000 a year. The entry fee for the 2017 Kentucky Derby was $25,000.
Wealth is a funny thing and it is astonishing to see stuff rich people buy or choose to spend their money on. Some people are born into it. Others fall by the millions. And some people, on paper, look like they’re destined to be rich one day… but end up destitute, penniless, and angry at the world around them.
Making and spending money wisely is hard. And the misunderstanding about what you should and shouldn’t buy to grow your wealth is one of the biggest differences between the rich and the poor.