To think most rich people don’t understand how the rest of us live?

[MyAmusedOpalCrab]

I keep seeing advice from wealthy people that is completely out of touch with reality - things like “just buy a house instead of renting” or “take a year off to travel and find yourself.” Even when they mean well, there’s a lack of awareness about how difficult things are for the average person. I’m not saying all rich people are like this but it does seem that extreme wealth can create a bubble where they forget what it’s like to struggle.

AIBU to think that most rich people genuinely don’t understand how the rest of us live? Or do you think this is unfair?

Some kids have it much harder than others.

This.

Just to add into the mix:

Some people earn a moderate amount, live in a moderate way, eschew debt and save diligently. End up with an impressive nest egg.

Other people earn six figures, have a huge mortgage, massive car loans, and spend every penny they earn. Get made redundant at some point and it all comes toppling down. Nothing substantial to show for it all.

Yep. And people on low incomes don’t know how “rich” people live either. No one has a perfect understanding of how other people live because they don’t live it.

Sounds to me like you're stuck in your own silo... Whats rich?
Many rich people have ordinary humble grounded origins.
If you drive a 20year old fiat 500 and live in Chelsea, you down as rich on here, even if you are not.
From your post I don't think you're talking about oligarchs, more inconsiderate, patronising people, but they can be rich or poor.

I remember the advice for millennials, which went something like if you want to buy a house stop buying avocado toast. I've never bought avocado toast and I still can't afford to buy a house!

We're living in an era when essentials are expensive and luxuries are cheap. It's fucked, is what it is.

It’s the literalness that’s odd here
”avocado toast” was a shorthand for “spending money on expensive none essentials” - which I noticed was £8 - 10 in London pre pandemic

now for every person for whom that would make no difference there is another who is claiming they can’t afford a house but has spent an absolute fortune on a few years on what to other would be seen as luxuries

£10 a day on average saved - so no lunch and coffees out and a bit less on nails and hair - and in ten years you have a great house deposit

In 10 years, assuming you save £10 every single day, (which is unlikely) your £36,500 deposit would be wiped out by the predicted 17.5% increase in house prices over the next 10 years. On the average house price, that’s an increase of about £47,500.

What’s odd is that people seem not to appreciate the actual barriers to young people getting on the housing ladder.

10% of the highest earners account for more than 60% of the income tax receipts. They are also far more representative in land tax, CTG and inheritance tax. They already do pay most of the tax.

You can argue they should pay more, and you can argue the percentage of their income to tax should be higher, but you can’t argue they don’t already pay the most.

Let’s not pretend people have much real choice in picking schools for their SEN children. LA provision is woefully inadequate. This isn’t a choice about giving your child a leg up, it’s giving your child the chance to be educated so they can live independently and not rely on the state for the rest of their lives. A family making the choice to sacrifice a lot to send their SEN child to a private SEN provision is of great benefit to the tax payer of the future. If only the government would recognise if they did the same for all SEN children, the future would be a lot brighter for the taxpayer.

@BoredZelda

It is no surprise that the people who have the most money pay the most tax. Do you think they shouldn't?

In the example given their bills ARE covered (..."after..."). versus can't cover bills and have nowhere to cut back in order to cover them.

Not everyone can be successful as well as raw intelligence you need a personality that brings something to the table and that is something that can’t be taught or bought.

@MyrtlethePurpleTurtle There is a lot of truth in the bootstraps theory. My brothers are 100% like this. I try not to be and am aware but it runs somewhat within me at a low level.

All content—podcasts, social, advertising—has a target demographic. You may just be consuming content you’re not the target demo for.

I wouldn’t relate to a financial podcast for almost-retirees, or a lifestyle site aimed at 20-something digital nomads, or a social media account targeted towards rural parents. It’s not for me. There are so many niches now with behavioral and micro-marketing it’s hard to find something broad enough to have wide appeal and relevance.

I am always stunned how many people can't grasp this - or even the very simple fact that the same percentage of a bigger amount equals ... a bigger amount.

You can't just apply inflation to one side of the equation. The cost of the coffee and toast will also increase in that period, plus you'd get the investment return on the saved money.

I think what I take for granted is having lots of different family members who would let me live at theirs for months if not years if I was in a bad situation.

If I lost everything and was starting again I can count 5 different households who would not only put up with me, they would be more than happy to help.

Thats wealth and privilege - not only do they have a spare room, they love me enough and are generous enough to have me.

Wages havn't risen by inflation so the £10 per month saved probably won't have increased, and may have even had to be sacrificed to pay increased rent, utilities, food, etc. Meanwhile housing costs have continued to rise out of proportion to wages/interest rates, so the "deposit" needed will have far exceeded the savings and interest earned.

I love this interpretation of wealth and privilege and think it is very true.

I agree.

It really isn't ALL about money. It's more about "options". Obviously usually someone with money has more options as they can effectively buy options (but even then if you've an incurable health condition, money won't cure you!), but it's not the only way to have options. Lots of things are worth more than money, such as a good reliable support network of family and friends.

But also other things, like a good education, transferrable skills, etc., which will help reduce periods of unemployment and improve employment/self employment prospects, which may improve your money situation in the long term. But also personal skills such as self confidence, resilience, etc., to help get you through bad times. Even rich people often don't have that, hence why they sometimes waste stupid amounts of money on drugs and alcohol. Look at how may rich people (such as TV personalities, "silver spoon" children and lottery winners) have crashed and burned.

... and especially, as you say, the value of support, which can take so many forms beyond financial - though that is in itself one form.

You wade through a lot of tosh on MN but it's for the joy of the occasional gems like your post that I stay.

Wages have risen. The minimum wage has doubled in the past 10 years.

Wages above NMW havn't risen anywhere near the same though, so the incrementals have been squeezed. Don't you believe the NHS staff, train drivers, etc who have been whingeing for years that their pay hasn't kept up with inflation??

Of course I do. Some people's wages haven't kept up within inflation, some people have. Lower paid workers in particular have seen large increases in wages. But most have seen some increase, even if not keeping up with inflation, which was the I was making. It is how pensions work. You invest a small amount monthly and end up with a pot worth considerably more than the collective sum of those payments.

Inflation is currently @3.8%
A friend has just had a pay rise ( assistant at college ) of 4%
and a bonus.
So only one example but keeping in line with inflation at her place of work

That doesn’t mean everyone’s salary does but it doesn’t mean they don’t either

And house prices have risen far faster since you were young.