Circle of Competence - A Discussion

[KopiKat]

Net Worth = $500,000

Net Worth = $10,000,000

From 500K to 10 mil - drastic jump?
Spending power very diff wor!!!

Relax lah... not talking about my own Net Worth!

Just giving an example of how the mindset of someone with $10Mil Net Worth when buying Luxury items like a $10k watch may be no different from those with $100k Net Worth paying $10 for a non-luxury item ie. it's the same 0.01% of Net Worth.

Also, not forgetting how Singapore has the highest concentration of Millionaires in the world and we can understand why Luxury biz is able to make $$. But, of course a recession will still hold back spending for luxury items, regardless of Net Worth...