9 Things Even the Rich Will Struggle To Afford in 2024
Written by
Sean Bryant
Edited by
Elizabeth Constantineau
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Over the past couple of years, inflation has made life more expensive for many Americans. Many people struggle to afford everyday necessities, and extravagant purchases have become completely out of reach for many.
However, the lower and middle classes are not the only ones who may be struggling to make ends meet. A recent study by LendingClub found that 49% of those earning $100,000 or more live paycheck to paycheck. That means there are some things that even the rich are struggling to afford in 2024.
Even though inflation has cooled off since its peak, many things are still expensive compared to previous years. Let’s look at some things that even the rich may not spend their money on in 2024.
Also see resolutions the wealthy never make.
Private Education
The cost of education, especially higher and private education, has risen dramatically over the past several years. Unfortunately, that trend is not expected to change anytime soon. This may prevent people from affording private education costs in 2024 and beyond. Private education also loses some appeal when more affordable options like public education exist.
Superyachts
Have you ever wondered what it would be like to sail the open sea in a $500 million superyacht like Jeff Bezos does? Even though Bezos probably isn’t feeling the pinch financially, many others are abandoning the idea of bigger yachts because of the huge expense required to maintain them.
“With the rising cost of living, having a million dollars or even several million doesn’t go as far as it used to,” said Eric Croak, CFP, president at Croak Capital. “For instance, superyachts these days often end up costing far more than their initial multimillion-dollar price tag. But the purchase price is just the start. The ongoing expenses for crew salaries, docking, fuel and maintenance can amount to about 10% of the yacht’s value each year. For a $10 million superyacht, that translates to more or less $1 million per year.”
Second Homes
Housing likely will continue to be expensive in 2024 due to high interest rates and a lack of inventory. This could cause wealthy families to reconsider purchasing second homes. It also could shift their focus to investment properties, where they can rent homes for a portion of the year and use them at other times.
Luxury Cars
Car prices have risen significantly over the past several years. The car market still has not fully recovered. Luxury cars always have been symbols of wealth. However, a 2023 survey from Edmunds.com found that 17% of car payments are over $1,000 per month. For many families, this isn’t feasible.
As more people become environmentally aware, owning expensive gas-guzzling cars is less appealing. Instead, they are considering electric cars that have seen their price tags come down to much more reasonable levels. Unless luxury cars see their prices decline in 2024, even the wealthy may instead opt for reasonably priced electric vehicles.
High-End Fashion
High-end fashion has changed as consumers become more concerned with sustainability and ethical fashion. Luxury fashion as a status symbol is not the same as it used to be. Plus, trends change quickly; because most people are spending more on their everyday needs, they may struggle to find the value in expensive clothing that might go out of style quickly.
Extravagant Weddings and Parties
Weddings are another thing that has been a casualty of inflation in recent years. Something that has always been expensive has become even more so. Even if you try to plan a more modest wedding, things like flowers, venue, food and drinks and the dress add up quickly. Plus, some wealthy people love to throw big parties.
“Being wealthy traditionally means you can host unforgettable parties that people talk about for years,” Croak said. “While most people might organize a potluck or a budget-friendly gathering, the wealthy often spare no expense. Organizing extravagant parties with A-list guests comes with a hefty price tag. However, even the rich are now reconsidering such extravagant parties, largely due to the pandemic’s impact.”
Exclusive Memberships
Exclusive club memberships often signal affluence. However, social norms are changing, and some exclusive clubs may be seen as outdated, elitist or even racist. Younger rich people may be less interested in these longstanding clubs and may instead turn to more inclusive, less costly alternatives.
Full-Time Housing Staff
You don’t need to be super wealthy to afford a house cleaner a couple of times a month. The rich take things a little further, though. They have entire staffs to manage their household. This is becoming a little less affordable though.
“Millionaires might afford some household help, but nowadays it’s harder to afford a full team,” Croak said. “A complete staff could include a chief of staff, management team, butler, assistant, chef, housekeeper, nanny, tutor, chauffeur and houseman. Depending on their experience, this can cost between $1 million [and] $2.5 million annually, excluding health benefits and bonuses.”
Traditional Luxury Watches
For decades, a nice watch was considered a status symbol. The rich would use luxury watches in a similar way to how they used expensive clothes to signal their prosperity. However, as technology advances, watches may become obsolete, and the wealthy are less willing to spend money on jewelry that is less likely to serve a functional purpose.
The Bottom Line
To someone outside the upper class, it may seem like the rich can afford almost anything. However, inflation has caused almost everything to cost more than it did several years ago, and even the wealthiest are looking for ways to pull back slightly.
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