Recently, an attention-grabbing Reddit thread asked: "What are some things you realized as you got wealthier?"
The conversation ignited with those who have switched tax brackets sharing the advantages, disadvantages, and perceived misconceptions surrounding money. Whether you agree with them or not, here are some of the top-voted replies:
1."Everything costs more when you’re poor. Paying six or 12 months at a time on car insurance is way cheaper than month to month. Buying things in bulk is cheaper. But when you’re poor, you’re not buying a toothpaste multipack. It's too much up front. Also, when you’re poor, you’ll buy a $50 pair of boots every year. When you have a financial cushion, you’ll buy a $300 pair of boots that last 10 years."
2."The difference in quality between cheap crap and middle range is often far larger than the difference between middle range and very expensive, even though the price gap is about the same or more."
4."Money can't buy happiness, but it can buy a sense of financial relief, a nice house, a car that won't blow a gasket on the freeway, a vacation abroad, a trip to the grocery store without having to keep track of the total, a full tank of gas instead of just $20 at a time, and so on."
7."Stress is much lower when your bank account isn't always on the brink of going into the negative. A while back, my insurance suddenly stopped working and I had to pay $200 for a medication instead of $8. Ten years ago, that would have given me a panic attack because I'd have to skip meals to make rent, but now it's just a minor annoyance."
10."I realized inflation keeps taking my goals farther away, even though I've saved so much. I got all excited because I'd reached my savings goal before I looked into buying my first house. Housing prices in my area have gone up in recent years, especially after the pandemic, and I'm still far away. ... It seems like everything inflates out of reach just before my life gets there."
15."Salary is not wealth. That’s temporary money. Diversified income-generating investments are the foundation of wealth. If I could go back to my 20s and spend even 1/10 less on stupid crap and instead invested, I’d be better off today."