5 Ways The Super Rich Waste Their Money
Posted: Nov 17, 2016
The super-rich may be good at making money but they can also be good at wasting it too. Take a look at these 5 common ways many rich people manage to hammer their bank balance for pretty rubbish reasons.Investing In Property That Lays Dormant
Investing in property is big business, and if you're renting the property out or using it, you can expect a good return on your investment. However, some rich people purchase or rent properties that rarely, or never, get used, racking up huge bills not just on the rent or home loan but also on the maintenance and staff costs. Of course, in the past, many people would rely on a rising property market to increase the value of their investment so might not have worried if the property was not used, but that approach is by no means certain anymore, and a dormant property could simply be a waste of money.Investing In Startups That Aren't Going Anywhere
You have to have a wealth of business experience and an eye for a good investment, and even then investing in a startup business is a risk. Unfortunately the risk can be quite high and startups can leech money for little to no return yet millionaires often provide a guarantor loan or other funding for family members' business ideas on nothing more than a whim. Experience, guidance and plenty of research is needed to determine if a startup business is genuinely a good investment.Launching Family Careers
If there is one key weakness millionaires have, it is their family. A person's spouse or child's career or opportunities rank as top priority, and many millionaires have been known to invest huge sums of money into their spouse or child's career, even if the child or spouse is not necessarily talented in their career of choice. Mohammad Zahoor is a fine example of this. In the Daily Mail earlier this year, and on Ruth And Eamonn 'How The Other Half Lives' on Channel 5, it was reported he had spent £20 million pounds trying to help his wife become a pop star, and at the time was considering a £27 million pound jet to help her launch in the US.VIP Hospitality Charges
You might naturally want to be treated like a VIP but such treatment comes with a very steep price, and often additional charges are added to products like bottles of champagne for VIP areas. There are no clear prices on what is charged because, unsurprisingly, clubs don't have a VIP charges list and most services are individually priced depending on the celebrity or VIP, the table, the service and the drinks. Additional miscellaneous charges can also be added on top so the VIP treatment price is able to quickly run into several thousands, just for one night.Health Care
Some might say you cannot put a price on health, but the thing is, the rich can, and a big price at that. The super rich will pay thousands a night to get hospital care that is more like a spa experience, with the best medical consultants, staff, luxurious facilities, gourmet food and concierge services on hand.
As you can see, the rich have no qualms splashing their money about. It certainly makes us feel better about that last £10 impulse buy in Tesco!
The author has written and published articles on a wide range of topics including Small Business Advice, Tax and Accounting, Interior Design, House Renovation and Project Management.