News

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

Discussion in 'Other Off Topic Forum' started by ttforcefed, Feb 16, 2004.

  1. ttforcefed

    ttforcefed F1 World Champ
    Rossa Subscribed

    Aug 22, 2002
    13,735
    expenses, like in the black card thread, what do you think someone should be making?

    Ie, i know people who spend $3,000 a month and CANT afford while i also know people who could spend $300,000 a month and they barely use their credit cards.

    Curious wht you guys think, and again, not business related expenses.

    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.
     
  2. To remove this ad click here.

  3. lesterm

    lesterm Formula Junior

    Nov 3, 2003
    608
    Durham, NC
    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.
     
  4. Steve Magnusson

    Steve Magnusson F1 World Champ
    Lifetime Rossa

    Jan 11, 2001
    19,283
    Texas
    Full Name:
    Steve Magnusson
    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...)
     
  5. ttforcefed

    ttforcefed F1 World Champ
    Rossa Subscribed

    Aug 22, 2002
    13,735
    900/yr

    anything less than 300,000 is low 6 figures, 4 to 700,000 is mid 6 figures, and 800,000 and above would be high
     
  6. Doody

    Doody F1 Veteran

    Nov 16, 2001
    6,099
    MA USA
    Full Name:
    Mr. Doody
    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.
     
  7. To remove this ad click here.

  8. ttforcefed

    ttforcefed F1 World Champ
    Rossa Subscribed

    Aug 22, 2002
    13,735
    doody, i live my life along the lines you describe....i try to spend today on what i was making on a 2 or 3 year lag, but i think you would be surprised how many people over extend...i have noticed it alot more here in london where i know people arent making $150,000 a year and they have no issue spending $5,000 a month...anyway, was just curious on what people thought.
     
  9. benedict

    benedict Formula Junior

    Nov 6, 2003
    731
    Full Name:
    Ben
    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
     
  10. Alxlee

    Alxlee F1 Rookie

    Apr 8, 2002
    3,697
    Wilmington, DE
    Full Name:
    Alex Lee
    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).
     
  11. davem

    davem F1 Veteran
    Silver Subscribed

    Jan 21, 2002
    6,055
    Stepford, Connecticut
    Full Name:
    dave m

    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....
     
  12. To remove this ad click here.

  13. mfennell70

    mfennell70 Formula Junior

    Nov 3, 2003
    564
    Middletown, NJ
    :) 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.
     
  14. MikeZ_NJ

    MikeZ_NJ Formula 3

    Dec 10, 2002
    1,533
    Southern NJ
    Full Name:
    Mike Z.
    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. :)
     
  15. Steve Magnusson

    Steve Magnusson F1 World Champ
    Lifetime Rossa

    Jan 11, 2001
    19,283
    Texas
    Full Name:
    Steve Magnusson
    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.
     
  16. judge4re

    judge4re F1 World Champ

    Apr 26, 2003
    13,234
    Never home
    Full Name:
    Dr. Dumb Ass
    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.
     
  17. thecarreaper

    thecarreaper F1 World Champ
    Silver Subscribed

    Sep 30, 2003
    15,978
    Savannah
    Full Name:
    I NEED A JOB
    that my friends is poetry!!!!!! great words of wisdom Judge4re.
     

Share This Page