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Dien Rice
October 14, 2006, 09:42 PM
Also, a smaller question I have is, my daughter keeps telling me, Mom, people in that higher income bracket don't have to worry about saving money! I say, though that "that's how they got the money, by saving it!" Who's more right? I want your honest opinions. Thank You.

Hi Bea,

I would agree with what Don said - if they just want to put out a flyer, then go with it. After all, you're still performing a valuable service for that business. And if people are looking for that product or service and they're not sure where to get it, then you're doing a favor to those who you deliver to as well.

Now, as for your question, do those in a higher income bracket use coupons and worry about saving money? I think is the answer is... (drumroll)... Yea and Nay!

Some wealthy people do make their money by not wasting money. They see where they can make a saving, and they do it. J. Paul Getty (who was once the richest man in America) was famous for his "penny-pinching". I read that he even installed a pay phone in his house for guests to use - so he wouldn't have to pay for his guests' phone calls!

However, on the other hand, you have people who make money other ways. For example, those who get paid very large fees - like many specialist doctors and lawyers. Many people in the finance industry also make a lot of money without worrying too much about their "costs". Because they made money NOT by cost-cutting, but by charging high fees and getting paid large salaries, they're probably not as "sensitive" to those money-issues as the first group, and they may be more likely to "splurge" their income.

If you haven't read "The Millionaire Next Door", then I highly recommend it. It points out how many "millionaires" are in fact ordinary people, who DON'T spend a lot on a house, and live "next door" - that is, in "ordinary" areas, and in "ordinary" houses.

On the other hand, you do have "high income" folks who may be spending all their money on their expenses. They may feel they "have" to spend a lot on their house and car, because it's what's expected of them in society and among their peers. For example, this behavior would describe many highly-paid lawyers. Can you imagine a high-income lawyer driving a 15-year-old beat up car? I can't. However, can you imagine a millionaire-plumber driving such a car? I can.

So, the answer, I'd say, is "both". However, if an area is known to be a "high wealth" area, then I'd GUESS that people living there want to be KNOWN for their "high wealth". That would suggest that they'd be more willing to SPEND BIG than rich people who live in "ordinary" areas, in "ordinary" houses.

I hope that helps!



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