Type 1: Grew up lower to middle class, Big Spender now
Ralph: Ralph’s father owned a struggling, small business. One day, the IRS nabbed Ralph’s father and took almost everything away. Ralph’s philosophy is that he needs to spend it all now in case a similar thing happens to him. Despite making well over $100,000 per year, Ralph has claimed bankruptcy.
James grew up near poverty, but now makes huge money as an IT consultant. If he had saved and invested, he’d easily be worth many multiple millions at the age of 45. I’ve never seen anyone who can spend like James though. His philosophy is, “I do what I want and figure out how to pay for it later.” James has timeshares and luxury cars, but I doubt he has much saved.