Why are some people (including wealthy) so cheap when it comes to electronics?

[me_inside]

I used to be a manager at a Target (in a wealthy area) and let me tell you that we would get Drs and lawyers that would get OFFENDED if you tried to sell them a TV that was more than 200 bucks. I remember when DVD players were about 300 bucks for a single disk player (2000-2002) and they would call people who pay these prices "idiots". These same people would make the claim that DVD and VHS look the same (same wealthy people, mind you). Don't get me started on the comments made about the people who paid 600 bucks for the PS3. Working in retail I'm always amazed at the number of wealthy people who dislike spending money on electronics. Yet, you got some J. six packs that snap up every 0% offer and buy a good chunk of the store. Maybe wealthy people prefer different things? Maybe some of these people who ***** about gadgets go and buy a 30k car every 18 months or so? What are your opinions?

[Go Blu]

You'd be surprised allot of affluent people are very shrewd when it comes to money. Which isn't a bad thing cuz they usually have big bank accounts to speak of.

For us, we have allot of blu cases.

[mystiksuicide]

I am the first to admit that I that I will always shop for a good deal but once I find something I like I buy the best if not for any other reason but because it will probably last longer.

My mac is 5 years old and still going strong. I bought a Pioneer Elite because I am not a gamer and wanted the best stand alone player. My b/f employee discount played a huge factor as well.

But you have to smart with your money but not to the point that one day you die and leave all that money behind.

[seto]

Some people are wealthier than others because they don't spend "big" money. They are more frugal with their money and budget themselves less disposable income.

They also do not understand the technology and its benefits making it very difficult for them to justify spending that kind of money.

[me_inside]

Originally Posted by seto

Some people are wealthier than others because they don't spend "big" money. They are more frugal with their money and budget themselves less disposable income.

They also do not understand the technology and its benefits making it very difficult for them to justify spending that kind of money.

True, a customer once told me watches movies for the story, not the picture and sound.

[me_inside]

Originally Posted by Go Blu

You'd be surprised allot of affluent people are very shrewd when it comes to money. Which isn't a bad thing cuz they usually have big bank accounts to speak of.

For us, we have allot of blu cases.

My parents were pretty cheap, thay retired with a paid-off home and 600k in the bank, but they taught me that going through life holding on to cash for dear life is stupid. Blow 15% of what you make on what you want, no questions asked and the other 85% for bills, savings and retirement. A formula that at 24 I'm already following.

[CptGreedle]

They have money, they don't want to use it.
Also, just cause they have money, doesn't mean they understand anything else in the world. Often, rich people know little about everything else and think their opinion is more important even though it is uneducated and unfounded. The fact is, they know nothing about HDTV, HD media, BD or HD DVD, DVD, etc... they are not videophiles or audiophiles, and they are probably under the impression that either someone wants to cheat them out of their money or that they can not spend the money now that they have it.

[me_inside]

Originally Posted by CptGreedle

They have money, they don't want to use it.
Also, just cause they have money, doesn't mean they understand anything else in the world. Often, rich people know little about everything else and think their opinion is more important even though it is uneducated and unfounded. The fact is, they know nothing about HDTV, HD media, BD or HD DVD, DVD, etc... they are not videophiles or audiophiles, and they are probably under the impression that either someone wants to cheat them out of their money or that they can not spend the money now that they have it.

Everything in life is subjective. I personally don't think spending hundreds on a game console is stupid, but many people do. I personally think the cost of raising a child has gotten to the point that I wonder if it is even worth it, yet some people think it is worth every penny including their possible retirement. Everything is subjective!!!!!

[Blu-Ray Buckeye]

Originally Posted by me_inside

Everything in life is subjective. I personally don't think spending hundreds on a game console is stupid, but many people do. I personally think the cost of raising a child has gotten to the point that I wonder if it is even worth it, yet some people think it is worth every penny including their possible retirement. Everything is subjective!!!!!

Raising a child is not a financial decision. You have to have your finances in order, but if you are doing it for financial reasons then you need to check your moral and spiritual compass.

[cawgijoe]

Originally Posted by me_inside

Everything in life is subjective. I personally don't think spending hundreds on a game console is stupid, but many people do. I personally think the cost of raising a child has gotten to the point that I wonder if it is even worth it, yet some people think it is worth every penny including their possible retirement. Everything is subjective!!!!!

Exactly.

People spend their money on what interests them. Some people travel, others drink, for some it's electronics, golf, and on and on........

I know people who spend all their money on cars........it's all subjective folks.

[Go Blu]

Originally Posted by me_inside

My parents were pretty cheap, thay retired with a paid-off home and 600k in the bank, but they taught me that going through life holding on to cash for dear life is stupid. Blow 15% of what you make on what you want, no questions asked and the other 85% for bills, savings and retirement. A formula that at 24 I'm already following.

Very smart!
I can't stress enough how important it is to start investing while you are young. Max out your 401k and also take advantage of the ROTH IRA. Lastly pay down the principal of your home when you buy one. It will take allot of discipline but will pay huge dividends and improve your quality of life.

[Blu-Ray Buckeye]

Originally Posted by Go Blu

Very smart!
I can't stress enough how important it is to start investing while you are young. Max out your 401k and also take advantage of the ROTH IRA. Lastly pay down the principal of your home when you buy one. It will take allot of discipline but will pay huge dividends and improve your quality of life.

I agree with everything you said except the highlighted part. That is actually a very dangerous strategy these days. This is not your parents generation. If you had done that recently you'd now be watching that money be erased as home values plummet. Long-term, housing earns far less on average than other forms of investment, and if anything, most people's wealth is too heavily concentrated in their home. Furthermore, depending on what you make, the interest on your mortgage is the biggest tax deduction known to man.

The pay-down-your-mortgage advice really only works for people who plan to stay in one place for a long time, which doesn't apply to most people these days.

[me_inside]

Originally Posted by Blu-Ray Buckeye

I agree with everything you said except the highlighted part. That is actually a very dangerous strategy these days. This is not your parents generation. If you had done that recently you'd now be watching that money be erased as home values plummet. Long-term, housing earns far less on average than other forms of investment, and if anything, most people's wealth is too heavily concentrated in their home. Furthermore, depending on what you make, the interest on your mortgage is the biggest tax deduction known to man.

The pay-down-your-mortgage advice really only works for people who plan to stay in one place for a long time, which doesn't apply to most people these days.

I prefer to lose my money than the bank's money. Just a 24 year-olds opinion Trust me having a financial institution take you to court is not fun based upon what happened to a co-worker of mine after he failed to pay his ex-wife's mortgage (could no longer afford his and hers) which was mandated by the divorce settlement.

[Sonny]

Originally Posted by me_inside

My parents were pretty cheap, thay retired with a paid-off home and 600k in the bank, but they taught me that going through life holding on to cash for dear life is stupid. Blow 15% of what you make on what you want, no questions asked and the other 85% for bills, savings and retirement. A formula that at 24 I'm already following.

Smart Parents!

[me_inside]

Originally Posted by Sonny

Smart Parents!

Thank you!!! I personally prefer to spend my disposable income on gadgets:

1. Most of them I can afford on a couple days salary or less. Can't do that with vacation, car, etc.

2. They entertain me and are just AWESOME!!!!

3. Save money in the long run. Between Netflix, 360, PS3 etc these things save me so much in gas, etc by keeping me in the house after work that they pay for themselves indirectly!!!!!!

[yellowblanket]

Originally Posted by me_inside

My parents were pretty cheap, thay retired with a paid-off home and 600k in the bank, but they taught me that going through life holding on to cash for dear life is stupid. Blow 15% of what you make on what you want, no questions asked and the other 85% for bills, savings and retirement. A formula that at 24 I'm already following.

oh crap! i;ve been doing the opposite way! 85% on what i wanted and 15% for bills! lol

[w_tanoto]

I am poor, but when it comes to laptops and electronic things, I would spend more money. I prefer Sony over any other brand (except laptop - which will be HP for me). As you all know, sony is often overpriced, but I am willing to pay more to get Sony.
For accessories, yes, I would be very stingy, and wouldn't care what the brand

[CptGreedle]

I got a financial planner top help me out. We are saving as much as we can now... in fact we are on a plan to maximize out savings so a lot of things are being moves around. I think I am planning to just save as much as I can next year, only making occasional Blu-ray and game purchases or rentals.
I can't afford much more than that until I have a lot more saved.

[MacDaddyOJack]

It all depends on the person. Most of us here are more than happy to pay top dollar for quality electronics. Some others may just want a set to watch football on. Their eyes might even be bad anyways so HD doesnt matter to them much. I dont regret spending thousands on my tv, not one bit. But at the same time, I will never pay $70 for a Ralph Lauren polo shirt because I think it's absurd. These rich people may be the same way about tv's, I guess it depends from person to person.

[saprano]

Originally Posted by me_inside

My parents were pretty cheap, thay retired with a paid-off home and 600k in the bank, but they taught me that going through life holding on to cash for dear life is stupid. Blow 15% of what you make on what you want, no questions asked and the other 85% for bills, savings and retirement. A formula that at 24 I'm already following.

so what do you say to a person like me who's been saving for 4 years has about $20,000 in the bank, but just got fired from his job and wanted to buy something for a long time(check out the sig) but does'nt want to( and i still can )because i dont have an income coming in, and dont want to see my hard earned money go down? or is it cause im cheap ?