Is looking good (hot, sexy rich), everything?

Ever heard of the $30,000 Millionaires? The term refers to young professionals who pretend they are rich. Essentially, they have a yearly salary of approximately $30,000 yet they purchase expensive products as if they were millionaires. They fake the fortune.

This type of individual seems all too common in today’s world. Especially among my generation of young professionals. After establishing a secure career, they believe they’ve stumbled upon a fortune. Without a thought toward insurance, retirement, or an emergency fund, this group splurges on products that were once perceived as too luxurious. They’re living the dream! And they look good doing it!

I’ve always wondered, at what point does it catch up on them? When does overspending become excessive debt? There has to be a turning point.

You see, my obsession with money management is rooted by the fear of this turning point. Well before I earned a salary, I determined what I wanted in my life. Perhaps discovering what you truly want from life is a turning point… Although I would like (even love) having a sweet $50,000 car, a big mansion, and the finest clothes anyone can by, these luxuries are out weighed by the desire to have a family.

Having to worry about debt would be detrimental to my focus on family At some point, I would like to retire and spend the rest of my life focused on my family… watching my children grow… and perhaps their children. (This will be a VERY long time from now, I’m only 23). Essentially, I’m investing in long term satisfaction… rather than for short term gains (for stock heads, haha).

I wonder how these $30,000 Millionaires make it through the future. Heck, I’d rather feel like a millionaire, than look like one.

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12 Responses

  1. Danny at Money Socket

    July 8th, 2007 at 1:34 am

    1

    Tell me about it, I just did a post about the consumer’s mentality and the investor’s mentality. Consumers spend all their time trying to look rich. To them, being rich means looking good and being able to make the monthly payments…I can see right through them and its amusing. You’re right its usually with people our age, I’m 23 too. Hopefully they start to realize how dumb it is and start thinking past next month.

  2. joe

    July 8th, 2007 at 8:00 am

    2

    Love the post. Sad to say I was in the group a couple of years ago, now I’m spending every waking moment trying to get the heck out.

  3. ambellamy

    July 8th, 2007 at 10:04 am

    3

    I hear you on this one… and frankly, my sister takes the cake… she has so much CC debt from her name brand crap…

    that and living in south OC…. you see it everywhere.

    I’m just thankful that more of my mom rubbed off on me then the spendy side of my dad.

  4. Leonid Shalimov

    July 8th, 2007 at 11:08 am

    4

    Hahaha. So true, great post. I have a bunch of people at my job that flaunt leased BMW’s and 2 series benzes but I know exactly how much they make (less than 40,000).

    Entertaining post.

  5. Dennis

    July 8th, 2007 at 2:22 pm

    5

    Thanks for the all the comments! Leonid, leasing cars is killer!

  6.   Ignoring retirement for the immediate future by Pro Money Blog

    July 12th, 2007 at 12:02 am

    6

    […] want to invest in their success, rather than build their retirement nest egg. In contrast to those $30,000 Millionaires, this group is serious about establishing wealth for themselves. What sets them apart from the rest […]

  7. Deron Sizemore

    July 19th, 2007 at 7:08 pm

    7

    I’ve never heard the term $30,000 millionaires, but I definitely know the type. I’m glad I know the technical term for these types of people! I almost can’t help myself but wonder if every person I see drying an expensive car, or living in a huge house is one of these $30,000 millionaires. Some might be millionaires, but I’m guessing most are not.

  8. sean

    March 27th, 2008 at 3:46 pm

    8

    Hi

    I was one of those too. I earned something like that, and I earned it real quick. Too quick to aclimatize. Now I work for next to nothing and have an IVA.

    Great fun, great stress…much happier now though.

  9. Denise

    July 14th, 2008 at 10:14 am

    9

    The kind of people you have talked about are getting more common. The lifestyle they have is envious with a “who cares” attitude more so like a millionaire never failing to impress.

  10. Rob At My Debt Relief USA

    August 4th, 2008 at 9:45 am

    10

    I’d bet a lot of these people are single, living at home with their parents with no real responsibilites. That’s why they can live beyond their means.

    I guess when such people decide to move out and settle down then the reality of care free living sharply bites home.

    For anyone in this situation interested in reducing their debt, I highly recommned the snow-ball method to debt management.

    Here’s how it works:

    Write a list of all your debts starting with the least amount owed on top. Then invest all you spare income into repaying the smallest debt first. Once the smallest debt is repayed in full move onto the next smallest debt.

    This approach means that you will quickly see results.

  11. Voos Baratos

    September 16th, 2008 at 10:46 am

    11

    I know what you mean! One thing that relates to that what you are saying is some people that are now 60 years old, and that lived they’re whole life “day by day”, some of them are single, and they are broke, they’re retirement is miserable because they never worked a lot, and most of them feel lonely because they have no young family. I share your point of view, its nice to have luxury, but you have to be able to afford it!

  12. Website Template Reviewer

    October 4th, 2008 at 3:39 am

    12

    With the credit crunch well and truly biting, the days of the $30,000 millionaire are well over. No more easy loans. About time too!


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