6 Bills You Never Have To Worry About When You’re as Rich as Elon Musk
Written by
Brooke Barley
Edited by
Gary Dudak
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As unfair as it may seem, those in the upper class don’t have to stress over some bills, even though they’re in positions where they can most afford to pay. Reaching the upper crust of income often eliminates the burden of some of the bills everyone else endures daily.
GOBankingRates spoke with Erika Kullberg, financial expert and founder of Erika.com, a website loaded with personal finance advice. She laid out which bills wealthy people like Elon Musk get to bypass and why. Here are some of the most common.
Student Loans
In America, 43 million people have federal student loans. About 9.9 million people with student loans reportedly have somewhere between $20,000 and $40,000 in debt. If you’re rich or have a rich family, you probably have access to the money to pay college tuition without a loan.
“People tend to say that rich people get the most free stuff and it’s often true. Coming from a wealthy family can help you avoid student loans,” Kullberg said.
Down Payments and Mortgages
Once again, a wealthy family can make a world of difference when it comes to affording modern luxuries. It’s not that a down payment isn’t required if you’re rich, but you’ll just have an easier time making the payment with help from your family.
“If you come from generational wealth you can save on a variety of major expenses,” Kullberg said. “[This] can result in a free down payment on a home.”
Depending on how well off a family is, their generational wealth might be able to cover the entire cost of the house, forgoing the need for a mortgage payment at all.
Wedding Costs
“If your parents can pay for a big wedding, you can stock up your house with free wedding gifts with no harm done to your wallet,” Kullberg said.
This is just another example of how having access to generational wealth can not only cover the costs of events like weddings, but can result in more items and experiences afforded to you.
Memberships and Phone Plans
The type of job some members of the upper class have also gives them access to certain perks. These perks can save them cash on bills most people have to pay every month.
“‘Rich’ people also tend to have great jobs that come with perks that can save them a lot of money like a free company car, gym memberships, cell phone plan, or free lunches, that can help them keep their budget nice and trim,” said Kullberg.
Let’s look at a cell phone bill alone. The average cell phone bill is around $144 per month. If you’re getting your cell phone paid for by your job, you’re saving more than $1,700 of your own money annually.
Medical Bills
A typical well-off person probably has access to great health benefits depending on where they work. This can lower their co-pay or even completely eliminate it based on the type of insurance.
“It can seem really unfair, but rich people do often get a break on some major expenses that those on a tighter budget may have to pay,” Kullberg said. “They can get better deals on health insurance if they receive a strong compensation package through their job.”
Out of pocket costs for healthcare can cost thousands. Individuals pay around $450 a month on average, and families can cost $1,100 or more per month depending on need. Getting great health insurance through a job saves rich people thousands of dollars.
Work Expenses
Some rich people have the privilege of working from their own home, or simply just don’t have a commute. Kullberg said this can help evade many bills.
“Even just having the privilege of working from home can save you a lot of money on transportation costs and professional clothing,” she said.
The typical commute can cost workers more than $5,000 a year. That’s more money that rich people just don’t have to worry about. Plus, when you factor in the wardrobe, you’re talking a whole lot of money that those who work from home just don’t have to experience. Depending on where you shop, you could be pocketing thousands a year but not having to refresh your work wardrobe.
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