$5000 probably would not put a dent in a millionaire’s finances. However, most millionaires (real people who have accumulated a net worth of at least 1M) are blue collar and/or working class people who would not even dream about wasting $5000 on a watch. Call this group A.
People who SEEM rich because they drive BMWs, have expensive houses and jewelry and watches and toys are usually, in fact, not millionaires (having accumulated $1M in net worth) because they spend all their money instead of saving a big percentage. They are caught up in the “race” for most possessions. Call this group B
Most real millionaires are in group A not in group B.
The #1 car for Real millionaires is a Camry. Affordable. Reliable. Fixable. Durable. Suitable to purpose. Low long term cost of ownership. Low price per pound. BMW weighs about the same as a Camry, but costs double the price. Double the price per pound. Bad choice. Should you buy an entry level Camry or one with all the bells and whistles? Well, the bells and whistles add quite a bit to the price but not very much to the weight.
Furniture would be selected not just on initial sale price, but also on suitability to purpose and durability. Don’t buy cheap crap that has to be replaced often. Buy something that lasts, but not high priced designer label fancy pants items that have no extra usability or durability. And consider buying it used rather than new.
I’m in group A sort of, a paper millionaire mostly through accumulated retirement investments coming from my regular actuary job.
I do live a little. I have one $5k watch but it’s a “this is the only nice watch I will buy ever” kind of watch. For cars I’m probably going to get an Acura. It’s a Honda, so reliable, but a bit more comfortable than an Accord.
well, that is a reasonable question. You get more to spend later. You probably get to spend more, in total in your lifetime because you pay less in interest, fees, penalties and depreciation.
You get to retire. You are more likely to not deal with worry over finances. You may get higher tax brackets. You may get a smaller slice of your social security pie. You might be happier, on average. You may get to support more charities some day. You probably will teach your kids better life lessons about money.
an early accidental death then it’s all to the government.
I’m gonna live out my group B life and yolo until the last $500. And if I’m still healthy but have 0 savings and I’ve withdrawn all my retirement and spent all my inheritance, I’ll go on one last vacation in Mexico, buy the strongest fentanyl, and watch the sunset on the beach as my last memory.
I like CRVs and that’s Honda so perhaps that counts as being good?