Why are rich people so cheap?

Question

my buddy let's call him "Ben" and I come from wealthy families. However, something I have always noticed about, not all, but most of my peers in my neighborhood is that rich people are so crazily cheap. Example: Ben has over $19M in his inheritance, still gets 10k a month from his fathers estate, and lastly earns 200k a year as an engineer. Aside from his income he pays no rent or utilities because the house is in his families name and the estate takes care of bills and the penthouse is downtown less than one block from his work so no car either, and no he isn't on any drugs or partying wildly lol.  However this dude is the cheapest person on earth! his gloves broke and he fixed it with duct tape because he didnt want to spend $3 at 7-11, not exagerrating, everytime we go out to a restaurant with a group of friends he tries to tip in coins and even tried to haggle the price of a subway sandwich. I'm a financial advisor so I understand budgets and etc. but this is actually not so uncommon in many rich people. And I wonder why

 obviously most aren't as extreme as Ben, but most are ridiculously cheap. Keep in mind I'm the type of guy who keeps his annual expenses very low regardless of its use ,business/pleasure, I avoid impulse buying of things I don't need. But alot of rich people just over do it and I would just like to ask why?????

Answer

Maybe in his mind that's how he's going to stay rich.

Answer

Maybe he has realized how much blessings he has and he don't want waste those blessings. Or maybe he is planning for something to use this money.

Answer

rich people are thrifty.they want to buy the cheapest items. they always keep in their mind that it is hard to earn money now a days.

Answer

Pas08c.      -    I'm not sure why this is...

I'm in a differering financial position. My budget
recquires me 2  'keep count'

However,  if I have a windfall I can 'splurge' with 
others..It' human nature.
Money is only what you make it.
To me -money is a means to buy+sell..
Not a way to base yr life.

Answer

Yes, when they see the poor in need of help and a seed of sympathy , but they do not care about that.but they lives and complete the construction of cheap

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Yeah, Rich people stay rich penny pinching through life. Then they get old and die and pass their money on to the family who blow it. I worked in group homes and see this all the time. Family members put there rich parents in the cheapest group homes , which is where i work. The next time i see them they pull into driveway in a brand new car. 

I believe that you should save, but enjoy your money and your life. You can't spend it when your dead.

Answer

Of the cheap people that I know, they are all Selfish (even the ones whose parents taught them that it's better to give than to receive). I'm not saying that all cheap people are selfish towards others but the ones that I know are! Obviously 'Ben' is even selfish to himself as he won't splurge on his own wants or needs. I would have to say that 'Ben' falls under the title Frugal, not cheap. In my experiences of life, cheap people are not cheap when it comes to themselves but whine and complain when they have to spend money on others. I think with them, it is a form of worship, money worship and whenever someone tells them that they are cheap, they just give them this sort of half laugh grin, as if they are proud of it. Sad, very sad indeed.

Answer

I am in a gratuity based business in Fairfield County Connecticut. The down to Earth hard working mostly blue collar people in the area are the only reason why I still have a job. I enter some homes that are owned by some of the richest people in the country. Greenwich, Darien, New Canaan and Westport are the worst of all towns when it comes to getting a tip. I was recently in Greenwich where I was lucky to get a stinking $5 tip from people that receive $300 - $400 worth of merchandise. Some are even demanding of where they want goods to be placed. It's quite sickening when you have to deal with people like this on a daily basis. They have no heart and no care for a guy who is doing a service for them. It's how you are raised. If you are used to being a stingy miser that holds onto every penny then you pass it on to your kids. There are some very nice wealthy people that I deal with that are a pleasure to do business with but they are few and far in between. They are probably the people that have an idea what it's like to work hard for a living or they were simply raised to give respect to others no matter what economic level a person is at or what race that individual is.

Why are rich people so cheap?

Responses (9)