Yahoo Finance 7 Things Rich People Spend Money on That Used To Be For Poor People
According to data compiled by Bloomberg, Americans have spent their excess savings from the pandemic when restrictions limited activities. The $2 trillion or so that Americans accumulated in savings have been depleted as of March and experts are concerned about consumer spending moving forward.
To make matters worse, certain purchases used to be common for those considered poor or barely getting by as little spurlges that have become trendy for the rich, which has driven the prices up.
What are seven things rich people spend money on now that used to be for poor people?
Also here is what the rich mean when they say they started out poor.
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Thrift Shopping
Thrift shops were once a destination for those tight on a budget to do their shopping as they looked out for the best deals possible. It has become fairly trendy to visit vintage shops, and the prices have increased as a result.
“Blame socially conscious people and Macklemore for this,” said Scott Lieberman, founder of Touchdown Money. “In the past decade, people have become much more responsible about reusing items, even if they can afford new. Macklemore’s song ‘Thrift Shop’ certainly didn’t hurt the trend of thrift items being cool.”
A report published a few years ago in The Wall Street Journal highlighted how, with the rise in popularity of thrifting, it has become more challenging to find bargains at places like Goodwill and the Salvation Army. To make matters worse, an increasing number of people are flipping items from thrift stores on platforms like Poshmark and Mercari. Gone are the days when a poor person could visit the local thrift shop to purchase clothing.
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Farmers Markets
Local markets, like craft fairs and farmer’s markets, used to be locations where low-income people would land affordable produce and unique items for gifts. Now it feels like farmer’s markets and other fairs have become a trendy destination for wealthy people to check out.
“Farmer’s markets used to be a great way to get cheap fruits and vegetables until the slow food movement took off,” Lieberman said, “and rich people started spending their weekends checking out farmer’s markets for fresh ingredients.”
You may also find people looking to purchase locally-made items at markets to flip online, which has also driven prices up.
Conventions
“Fan conventions were once a cheap way for fans to meet actors and talk about their favorite shows,” Lieberman said. “They’re now a spot for super fans to go meet their heroes and buy merchandise.”
Convention prices have increased and it’s becoming difficult for the average person to meet their favorite celebrity or athlete in person. In addition to the expensive entrance costs, fans have reported frustrations in online forums like Reddit with celebrities charging anywhere from $100 and up for a simple autograph. Due to the increase in demand for celebrity photos and meets, the days of a $20 signing seem to be long gone.
Festivals
Another type of event that was once a popular entertainment option for lower-class individuals was attending festivals. These days, you can see billionaires and celebrities attending festivals like Burning Man. Instead of commuting like others and staying in tents, the rich are chartering flights in and living in fancy campers with furniture, air conditioning and personal chefs that charge well into the six figures for meals.
Tiny Homes
Minimalist lifestyles, with a focus on tiny homes, were once an option for those seeking affordable housing as they didn’t have the resources to live in a major city. These days the cost of a tiny home ranges from $30,000 to $70,000, according to HomeGuide. With tiny homes becoming more popular among the rich, lower-income individuals may be unable to enter this space, limiting their living choices.
Unique Living Situations
Speaking of tiny homes, another category that rich people have infiltrated is unique housing options, ranging from a “fixer-upper” project to warehouse living. As developers scramble to turn spaces like schools or gyms into living options, there are concerns that affordable housing options may not exist for those who need them.
While fixing up an old home as a DIY project was once an opportunity for a lower-class person to enter the real estate market, wealthy people frequently purchase these types of properties now.
Public Transportation and Cycling
While those with a lower income have traditionally relied on public transportation or bicycles to get to work, the recent interest in urban living and environmentally friendly options among the rich has driven prices up.
According to CNBC, cycling and fishing have become the top hobbies of the wealthy, activities that low-income individuals could traditionally rely on as affordable pastimes. As these hobbies become more popular, the prices will increase and cycling could become too expensive for those who rely on it for transportation.
Those are seven categories of purchases that rich people spend money on that were once reserved for poor individuals. Only time will tell if the prices will continue to increase, turning these splurges into full-blown luxuries for some.
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