What do the very wealthy spend their money on?

In my experience, anything they can write off as a business expense.

They spend most of their money on investments—which is why they’re in the 1%.

Certainly not charity, according to stats.

Who are the 1 percent of earners you are referring to in the question?

Themselves and their families. A few (Bill Gates, for example) have used it as seed money for charities of worthwhile projects.

But the vast majority of wealthy people puts their money in multiple houses, nice cars, airplanes, and vacations.

My Father in law was a 1%er.
He lived a very modest life. He always talked about building a goose and only eating the eggs. Once you eat the goose you go hungry.
He spent his money on things that would make him more money. Real Estate, muni bonds, investments in his company, and golf. He had a house in the Palm Springs area and one, one in the Bay Area and a condo in North Carolina where his factory was. None of them were worth a million dollars and non of them were more than 2500 square feet.

The disgusting types spend over 2000 euros on one big bottle of champagne every weekend.
The more modest about 300 euros. Also spend a lot of cash on cocaine.

Many around age 25–30 spend loads travelling every weekend. (Sounds good to me)

As @livelaughlove21 said – they def don’t spend anything for charity.

Many brand themselves from head to toe and never wear the same thing twice. So that already 500 euros on close a week.

Oh and I’d like to mention that these people are spending mom and daddy’s money and driving their parents mercedes, lexus, porsh etc. So imagine how amazing their personalities are.

I live in Luxembourg, these are the people I see everyday. I bless my family for not letting me become one of ‘those.’

Some spend their money to buy a congressman or two.

By 1% I mean holdings and earnings worth more than 99% of the rest of the population. In the USA I believe this is north of $400,000 in annual income.

When you think about it along the lines mentioned by @snapdragon24 for an economy it would make more sense to have seven people buying seven bottles of less expensive champagne. It would certainly keep more people employed. Same goes with clothing, cars and other purchases. How many people are employed to make a single $200,000.00 Bentley and how many to make 10 – $20,000.00 Chevys? And since either way the economy would have $200,000.00 put into circulation it would seem that we would be better off as a society if we keep more people employed and they in turn are purchasing more products.

Art, collectables, designer clothing, cars and various services, such as personal secretary, lawyers, airplane pilots, accountants, etc.

I have some people like this in my family. They travel, stay at the best hotels, send their children to the best schools, and seem to enjoy life. They also work hard. Much of what they do is chargeable to the company (Beemer, gas and maintenance on the Beemer, trip = business expense, etc).

Thanks, that is what I was looking for, @callumm. So, some of the people in that bracket have just sold a home. I would imagine they spend money on another home. I imagine some are small business owners and use their money to keep the business running and other expenses that everyone else spends their money on like food, household expenses (electricity, garbage pickup, insurance, maintenance, lawn care, Internet, TV), transportation, medical insurance and/or bills, entertainment.

Some people in this bracket would be in the medical field, attorneys, professors, corporate executives, politicians, morticians, bankers, landlords, construction supervisors, famers; you name it. I would think they would have normal expenditures like everyone and would spend their expendable money on whatever they could afford and what they are interested in spending it on. Vacations? College for their children? I don’t really know.

I guess my dad would fall under this category. My dad invests for a living, so obviously much of his money goes there. A lot of what he has been spending recently is for me, my brother, and my sister to go to college (and soon my youngest brother as well).

Well..I am now damn near broke after years of being comfortable, and, I have never been in the wealthy elite class, not even close, but…when I have money my top 3 spending choices are good food, travel and a nicely decorated home.
I also have always been a generous type and love to entertain and share with friends and family.
I believe in sharing our prosperity, and if I had millions I would get extreme joy from giving.

I would set my daughter up, start all kinds of animal and wildlife refuges.
I’d love to be a Ted Turner and buy up millions of acres of wild lands to protect nature and animals. :-)
I have been on both sides of just about every financial fence there is, and these days, my fences need mending, but I am very adaptable and when I have I share joyfully, and when I do not, I find joy in simple pleasures.

On crap to remind you that you are poor!

The wealthy give a tremendous amount to charity. I can’t believe people are saying they don’t. The percentage of their money they give might be lower than lower income people, maybe someone can show me stats, but to say they don’t give to charity is ridiculous. Some of the giving might be done through their corporations, but I would bet plenty is given by the individuals also. Ironic that many of the people who don’t think the wealthy should have to pay the same percentage of taxes as the other 99% of Americans, forget them paying possibly a higher perecent, care that those wealthy people give the same percentages as the 99% to charity. Plus, I would want to know how the charitable contributions breakdown. Personally I think giving to your local church should not be counted.

Wealthy people spend on a variety of things. If you have ever read the Millionaire Next Door, many of them are very conservayive with their money and you would have no idea they are millionaires. If the top 1% is people over $400k a year, there is a wide band of people in there making very different incomes. The top 400 people in the nation make over $200 million a year. If we ignore spending money on new investments, and just focus on spending for the sake of enjoyment, I would say wealthy people spend money on travel and things related to travel. There are many more categories but that is one that I think is significant.

Anything that promotes there compound interest in their own money.
In short anything that makes their money grow.

Some items I’ve noticed mentioned here and there: fresh flowers for every room every other day; weekly purchase of new make-up supplies; more jewels than anyone can want or need; chili sent from Chasen’s (?) anywhere in the world one is on location; silk sheets on any bed they sleep on in the world; extremely pampered pets; a staff that accompanies them where ever they go including hairstylist, maid or butler, secretary, etc.

How does anyone know what someone gives to charity?

The very wealthy spend their money on…

… the very wealthy.

@bkcunningham Reporting on taxes.

Does the IRS compile and give out stats on people’s personal information on their tax returns, @JLeslie? How does that work?

@bkcunningham I know the IRS website gives out stats on how many people earn what income and the average percentage of tax they pay. I assume the charitable information is public also, but I might be wrong about that. And, some people give money, but it is not tax deductible. Like I gave money to a friend, gift money, when they were going through a hard time. Not a large amount, but if it had been to the American Cancer Society I could have added the amount to my tax return, since it was to an individual I couldn’t. Money like that isn’t counted.

I know what you mean. We are providing financial support to a couple of family members, one on my side and one on my husband’s side, and we can’t get any tax benefit either. It isn’t reportable, as they say. I

@Sunny2 I think that is extremely rare. I don’t know many people who make $400k a year, but I know many many people who make over $200k and have a lot of wealthy built up and they don’t anything of the sort.

@bkcunningham if you give too much you will be taxed on the money.

I think they spend it on lavish vacations, cars, homes and real estate. Oh; and also jewelry if they’re fun people. lol

If one researched the very wealthy one would discover a life of struggle and hardships and loss.
Hence they are scared of losing control over their lives and never want what they remember as a horrible experince of life ever to reoccur again.

Too bad in some cases it becomes an obsession, to gather more money and assets.

In terms of spending, they purchase the same products and services as everyone else accept that its the finest of its kind. What your company offers is irrelevant for attracting the wealthy. What is relevant is the quality and track-record. This is how firms, for example, banking and law, earn the title ‘white-shoe’. Although, an advantage to be being an up-in-comer is the ability to lower prices for lack of name recognition. Gucci, for example, is known for its hand-bags but I have a custom made hand-bag with the same alligator leather material and a different style made by up-an-comer for half the price of what Gucci charges for their hand-bags. Eventually, this up-an-comer will be a white-shoe as the market catches on.

In terms of investment, they either make money of interest rates, or invest in real estate, or stocks, bonds, currency, metals, art, wine, antiques, coins, stamps, commodities, venture capital, forests/timber and financial derivatives. They do this either on their own, or through white-shoe management firms.

The wealthy people that I have known spend their money on unnecessary bullshit. Like that saying, “They’ve got more money than they know what to do with,” they blow money on stupid shit, just because they have the money to do it.

@WillWorkForChocolate What stupid shit exactly? And, how are you defining wealthy? How much money?

@JLeslie The examples I gave are primarily motion picture stars. I was appalled at the extravagance. I’ve also known extremely wealthy people who wouldn’t think of doing that and who are stalwart supporters of the Arts and other worthwhile causes.

Tis extravagant behavior people are talking about are primarily first generation (and probably last) of wealthy people. I don’t even consider them “super rich” as much as foolish lottery winners. The true “super rich” buy high quality things that will last for generations and don’t replace it often. They put their money into things that make more money. They love the game of manipulating the IRS out of the most money possible and will invest in things for the common good if they see a return and a tax deduction.
I think most people who only see the rich who spend their money frivolously probably don’t know any “real” rich people.

Just to address one point on the charity front. Many of the super wealthy set up charitable foundations that are tax shelters, but you’re allowed to travel to exotic locations to meet with your board members (i.e. your wife, son, daughter-in-law, and their kids) on an all expenses paid “annual business meeting” to a resort in Hawaii, or the Swiss Alps etc.

For normal people, this is called a “vacation” and we pay taxes on it, for the super-weathy it’s know as a charitable foundation and it’s tax free. It’s not to say that these foundations don’t do some good in the world, but in some cases, they’re probably doing the foundation owners more good than the recipients of their philanthropy.

@gorillapaws I have often wondered without the game of tax write-offs if people would donate as much, or buy property as much, and whatever examples there might be. It’s not just the rich, most people in the US are convinced having a mortgage is beneficial financially because of the tax benefit.

I remember when credit card interest was deductable. I wonder if it would stimulate the economy if we did a 5 year credit card debt exemption holiday.

@Judi What exactly do you mean? No one has to pay their credit cards for 5 years? The current debt they have?

No. I mean that they can deduct the interest like they do mortgage interest now. I meant to say interest not debt and it’s to late to edit. Ugh.

@Judi Car loan interest also used to be tax deductable. I’d rather see that come back than credit cards. I’d like to see interest rates cme down on credit cards rather than a tax write off. Loan sharks.

@JLeslie By wealthy, I mean weeeeeaaaaaaaalthy. The most recent example I have is a man who lives close to us. He spent three million dollars on a swimming pool. Stupid shit.

I would love to live near him and let him contract work to me, @WillWorkForChocolate. Or even contract work for him and get a percentage. I’d love that.

@WillWorkForChocolate I’m going to assume he is new wealth (neaveau riche) not old money.

I’m unfollowing this. It’s depressing. I can’t live in a house with a functioning shower, but some idiot gets to spend three million dollars on a swimming pool he probably never swims in.

How about ordering a hot pink Tesla-S Batmobile with rainbow eyelashes over the headlights as a prank?

Nouveau riche indeed.

If anybody’s interested in this topic, this site has a lot of relevant information: http://www.hauteliving.com/magazine/san-francisco-marchapril-2013/

A neighbor of mine was featured in it once for a lavish Valentine’s Day ball they hosted. And it only gets more interesting from there ;)

I think it depends upon the wealthy person. Some are frugal, some are frugal in some areas and extravagant in others. What I find startling or amazing or some word like that is the conspicuous consumption of movie stars. It is impossible to listen to the news without hearing of Brad and Angelina planning to spend millions on a lavish wedding. Or the Bieber kid and his monkey. It is their money, somehow they earn it and they can do what they want, but it still makes me wonder what the hell are they thinking??? I heard an old lady on talk back radio last week saying she had lived too long because her husband’s health was failing and she was not well but their superannuation had run out and on the pension here which averages 24,000 per annum for a couple they were going to have to give up their private health insurance and may lose their home because of an unpaid mortgage and taxes. I think capitalism is the best way to run a country but sometimes when I hear stories like that, and then Bradgelina stories next, it just makes me wonder….......

@DominicX Your link reminded me about watches. My husband would spend a fortune on watches if we had millions.

@JLeslie So would my roommate. He graduated early and received $700 from his stepmom to spend on a gift for himself…used it all on a watch. :P