If someone is spending $10K a month on just personal...

I am of the opinion that the amount that you are able to spend if dependent on how much you make and how much you have. There are some people that earn a salary in the six-figures and can only afford to spend so much on luxuries. I also know people who are "unemployed" and are able to spend $5-10k a month due to the fact that they have a very large piggy bank. I suppose, however, if someone does not have a few million in cash saved, then high-six figures seems about right while still having money to put away in savings.

 

What do you guys mean by "high 6-figures" ($150~$200K per year or $900K/year)?

(That Nero Daytona thread still has me a little shook up...)

 

as a general rule, people who spend that kind of money per month above and beyond their basic expenses (home, transportation, food, child care/education, etc.) are simply not worrying about the kind of questions you are asking.

like the supreme court's opinion of pornography, it's tough to define, "but you'll know it when you get there".

or alternately, "if you have to ask you can't afford it".



doody.

 

My guess would be that if someone is spending $5,000 a month they should me making in the high 6 figures at least, assuming they have a reasonable mortgage, etc.[/QUOTE]

I agree, except I would have concentrated on retiring the mortgage prior to the big spending.

Ben

 

From previous credit card lender experience, your credit lines would generally be about 1/3 of annual income. IE= $100K income would get you $30K to $35K lines. However, after $35K we liked to see significantly more income and generally we wouldn't give you $50K lines unless you had about $250K plus a year. For $100K lines, better show at least $1 million per year AND that much in liquid assets.

I have also seen people put through $1 mil + a year on personal cards as well as charge anything from $1 to Audi A8's on cards (there are still many dealers that won't take cards for full purchase price though).

 

I was amazed at how my relatives overseas spent so much. Biggest diffrence seems to be they dont have the "trappings" of success. Just one car per household, small townhouse....

 

my brother-in-law-to-be the accountant has a client whose wife spent $300k on the credit card in one year... He makes in the 1-2MIL range and has practically no net worth.

 

I remember reading something this one guy with a Black Card wrote about how he has an eBay business, and uses his card to purchase the things he ultimately sells for a profit on eBay. If you think about it, doing a significant amount of volume that way wouldn't nec. mean that you're loaded; it would just mean that you spend a lot for stuff that immediately gets flipped for profit.

And in terms of personal items, some people will not use cash/debit at all - just the CC for rewards/perks/etc - and then pay the card off month to month. You do need a significant amount of money to spend 10K/month... at least 120K of after tax money.

 

Wow -- I classify myself as a tightwad, but if I was making $800K~$900K per year, I sure wouldn't consider spending $60K/year too frivolous.

 

Never confuse cash flow with wealth. In our family, a millionaire is one with $1 million CASH, in the bank.

Everything else is just an asset and should be out there making money.

 

that my friends is poetry!!!!!! great words of wisdom Judge4re.