When you live in a wealthy neighborhood, you’re forced to compete for everything and everyone. Unfortunately, you’re out of luck if you want to get ahead because there’s no space left on the ladder.
The pros and cons of living in a wealthy neighborhood is a blog post that discusses the pros and cons of living in an affluent neighborhood.
Don’t you want to earn millions of dollars so you may purchase your dream home? You know, the one with a view of the lake and a neighborhood full of other opulent homes? That was my dream for a long time, but I just recognized it wasn’t for me.
The following are the reasons why
My return journey
I returned home to Orange Country, California, a few weeks ago for a few days with my family and attended a conference in Los Angeles. You may believe that Orange County (O.C.) is a posh locale, but that is not the case for the bulk of the county. My parents’ house, for example, seems to be a typical house and isn’t worth a million dollars. This isn’t to say that my folks live in a terrible neighborhood. On the contrary, they reside in a middle-class area. The schools are decent, and the most upscale restaurant is The Olive Garden, which isn’t awful.
When I visit O.C., I spend time with my family and schedule many business meetings, as is customary. I designed the bulk of my appointments in Bel Air, which was near the conference center since I was also attending a conference in L.A.
My time in Bel Air
When I was down there, I caught up with several fantastic entrepreneurs. The meetings were fruitful, and the individuals I met were honest and kind. The only problem I had was that the other individual in several of my encounters was attempting to brag about how successful they were. People remarked in passing throughout our discussions that they owned expensive 6-figure vehicles or lived in multi-million dollar houses. I’ve never understood why people brag because whether you drive a Nissan Versa like a Rolls Royce or me, I’d never treat you any differently, and I’d hope you wouldn’t treat me any differently. Fortunately, none of the individuals with whom I had meetings mistreated me. The worst thing some of them did was brag about their accomplishments, which is perfectly acceptable. Regrettably, I have been guilty of this in the past.
But I’ve never treated someone poorly because they didn’t have enough money. For example, even though I was second in line of five people when I requested the valet for my vehicle (in Bel Air), he delivered it last. It wasn’t even that my car was far away; I could see it. It’s because he presumably thought that someone driving a more excellent vehicle would tip more and be served first. Worse, as I was waiting for my vehicle, a couple of the locals began making comments about impoverished people and their clothing. Because I was the only one wearing jeans and a t-shirt, I knew they were talking about me.
What these individuals are unaware of
The most amusing aspect of it all is that the average family income in Bel Air is approximately $207,938 per year. Let’s pretend that the individuals who disparaged the “poor folks” earn more than the typical Bel Air resident. If we assume they are in the top 1% of income earners in the United States, they make about $410,000 each year. You will spend a good 40% of the revenue on taxes. That leaves them with $246,000 each year. Let’s assume they have a $15,000 monthly home payment and a $1,500 monthly vehicle payment. This equates to $198,000 in annual fixed expenses. That leaves them approximately $48,000 to spend on food, vacation, clothing, and other items they may want.
So, my central question to such individuals is, “Where are your savings?” You are living the lifestyle of the wealthy and famous when you spend that much money, but you are not accumulating riches. If you want to create money, you’ll need to invest in things like real estate, which you won’t be able to do if you’re living a luxurious lifestyle. If you live that way and lose your job or anything terrible occurs, such as an economic downturn, you’re doomed. This is why four of the six Real Housewives of Orange County are bankrupt.
My most important realization
I know it seems ridiculous, but the whole experience reinforced why I don’t want to live in a posh neighborhood like Bel-Air or Newport Coast. I’m simply not going to fit in! I could fit in if I wanted to, but it’s just not me. I’m not a fan of flashy vehicles or large houses. I’m sure I could find out how to live that lifestyle now if they did, but I’d instead create money. When I have enough money, I’d rather spend it to attempt to make the world a better place.
I am not implying that everyone who lives in an affluent area is like this. I have many wealthy friends. The majority of them are extremely modest. However, the tiny percentage of people who believe they are superior to everyone else makes me never want to live in an affluent area.
Frequently Asked Questions
What is a wealthy neighborhood called?
A wealthy neighborhood is called a gated community.
Do rich people live below their means?
Yes, they do.