Upper class habits to stay rich

[publicsectorlife]

What habits do the upper class have to stay wealthy? What would they never buy that they would consider a waste of money?

Our household income is very good. But yet we seem to be haemorrhaging money with high mortgage, commuting and childcare costs.

But yet our friends with generational wealth (ie small mortgage) seem to be living such a different lifestyle with about 6 holidays a year.

We can’t do much about having no inherited wealth but I think we must be missing a trick.

The OP seems to equate class with being a bit more old fashioned about discretionary spending, which isn't really a class thing, more generational. Upper class people tend to have a lot of land or property that is owned outright, which is obviously going to improve disposable income. The rest of us are just making different choices about priorities, some of which end up being good choices.

I think you are confusing upper class "rich" and new Money rich OP. I'm resolutely middle class, but thanks to a public school education have a few mates who are genuine old money "upper class".

All of those I know have inherited property that has passed down the generations, never had a mortgage to pay. Most of those I know don't have much, if anything in the way of new furniture, all inherited antiques. Most don't have the newest shiniest cars, more likely to run a Land Rover or Volvo into the ground. Often they are more asset than cash rich, my best mate has a stately home and whist its beautiful it costs a fortune to maintain, hence weddings / film location / scratching about for cash etc..

New Money, different ball game, made loads at something, good at investing, good at finding lines of credit, good at avoiding the tax man... They are not upper class though - you can migrate from working to middle class, but not to upper class, you are born to that.

Having worked at an indie school I was amazed at the number of students who had premium bonds and stocks and who were already learning about investments playing on investments platforms trial accounts. I taught economics and the sixth formers already understood how wealth grew and received good financial education from their parents. I ran a very popular share club and young enterprise. It was like chalk and cheese comparing it to the state schools I taught in.

Well, we are working class, but also have several holidays a year. Going to the Caribbean very shortly, India in March and then the Caribbean again.

Our mortgage is low (£235pm) and our kids are grown up, so we have no nursery fees.

If we had to pay a huge mortgage and nursery fees, it would be a VERY different ball game.

The upper classes have generational wealth. Land, properties, investments and vast inheritances. You can't replicate that. If you're sensible and lucky, you might achieve it for your grandkids.

I don’t think it’s that unusual for people who could well afford it, to never have been in a Starbucks! (To quote a pp). Or to very rarely have bought any takeaway coffee. They are seen by many as a prime waste of money, especially when they’re a daily habit, and even more especially when they’re a habit of people who complain of being short of money.

Love this!

^This

Source: I grew up "average" and married "very wealthy".

I used to think that wealthy people had the same kind of money I did, just "more". What I learned very quickly is that very wealthy people don't have "money", they have debt and assets. Yes, that does translate to having more disposable income, but I realised very quickly that most people from my background are quite naïve about what wealth actually looks like close up.

It's a completely different ball game, and one I still don't completely understand.

1.Property = wealth
2.Holidays spent in holiday homes = budget holiday.
3.Wealthy people are often the most stingy in my experience.

Doesnt matter whether its old money (landed/industrial) or new eg lottery/football it's simply there is a lot more of it. if you are a footballer on 100£k a week you arent eating marked down food and wearing old clothes. if you are the Duke of Westminster then you arent eating marked down food and your clothes may have belonged to your father but were tailored on Savile Row and the fortune your family has was invested years ago and is being managed by investment firms.

Visiting friends houses and chalets around the world means you don’t have to pay for any of their holidays beyond flights. Booked in advance usually using air miles.

That air miles comment is so true! That or they buy tickets a year in advance to get the cheapest deals.

From what I’ve observed they don’t spend money on useless stuff, no fancy cars, no fast fashion, they tend to buy pieces that will last both with clothing and furniture.

Some people with money are frugal to the point of miserliness though.

went to the Hearst Mansion in California. Built in the 20s during the Depression the buildings showed you what real wealth was/is. You can see it with Mid East oil sheiks or Tech billionaires or even Paul McCartney. Money that has a life of its own. The banks are jumping to your voice not you overpaying the mortgage and reusing the teabags to save pence

That's not really correct, for a start the footballer is not, and never will be upper class - at best they reach middle class, but arguably are always working class (assuming that as their start point).

I quite often see our local lady of the manor (who is upper class / old money) in Lidl or looking at the marked downs in Tesco, because they are inherently "careful with money".

I'm an electrician who spends a lot of time working in country houses owned by the upper classes, get one as a customer and the word spreads - I still carry elements for 1950's Belling bar fires in stock as they are amazingly common in the drawing rooms of grand old houses to take the chill off. I think the footballer might have gone for the underfloor heating and fancy fireplace (and I'm with him on that!)

A 17th century cot? That's amazing. When was it made? (If you know the year.) 😊 That's a proper antique piece.

If you would like to replicate buy a house smaller than you can afford, invest the difference into overseas property or assets. Use your friendship network as far as possible.

House swaps are the equivalent if you can stomach it. Many of our friends have country houses with people paying to visit. It pays for the roof etc.

Travel often as cheaply as you can, and obviously visiting any friends overseas.

Spend wisely and judiciously.

No fast fashion but good quality items which last years and can be repaired.

Not throwing money on the newest TikTok trend, classic vs influencer. Not spending a fortune each day in a coffee shop.

No mountains of gifts at Christmas and birthdays. Not tons of stocking fillers which are thrown away after one use and not buying the latest must-have toys.

Toys are handed down. We had plenty of toys from our childhood the parents kept to give to DD, especially wooden ones or things like doll houses, model trains and even books and board games.

Not redecorating every 2-3 years because the wall colour is not fashionable, stick to classic ones. Buy sofas which can be re-upholstered instead of IKEA every 4 years.

Cook instead of take aways all the time.

Obviously some things are easier to do, having a large garden means you can grow your own vegetables and keep chickens. Having parents with money means you will inherit good quality furnitures you may want because you grew up having a certain taste in decor or they are valuable enough to be sold.

Money make money. That is it.

The old style minor landed gentry are not frugal because they are somehow better or savvier than us povvos, it is often because they are asset rich and cash poor (and as has been pointed out have a lot of good quality stuff that has been inherited - not for them having to take out a loan for a sofa). There is however also often a stifling expectation that they preserve the assets (usually a house (s) and land) for the next generation. I imagine it is rather a miserable way to live.

I grew up in a farming family - tenant farmers so my parents and grandparents didn't own a bean. But we knew people who were a lot richer than us as they had inherited farms and houses - so no rent or mortgage to pay. However often they cash poor day to day as there wasn't a lot of money and there was this overwhelming pressure to preserve the assets for the next generation. You would get adult sons working for free to "keep the farm" and being controlled by elderly parents it was like some sort of horrifying Stockholm situation with everyone in thrall to "the farm".

I am grateful in a way we were just poor and I never had that pressure. Everything I have is mine and earnt by me.

You can't replicate that. If you're sensible and lucky, you might achieve it for your grandkids.

Much much harder for the young to build wealth these taxes what with stagnate wages, higher taxes, stagnant property market, etc

I would take what they say with a pinch of salt. People with money play it down, especially inherited money. When they say ‘we have a small mortgage’ that means ‘no mortgage’. When they say we’re off to Spain for half term, they’ll be staying in the FIL’s massive villa which will one day be theirs. You just can’t keep up with some friends and that’s fine. But when you’re delighted with a 10k bonus, they’ll be given a few hundred grand from the sale of Granny’s place in the country which she’s been renting out since 1985.

I suspect for most of the really rich in the UK at least, the ones with real generational wealth it was made off the backs of the local serfs and working class. Enslaving the poor was mostly free wasn’t it?

These aren’t reasons people are wealthy or retain their wealth, this is how the middle classes make their money stretch further.