Monday, May 23, 2011
Rich will spend more, but Value is key
According to a recent survey conducted by American Express Publishing and Harrison Group, rich Americans are expected to spend an extra $26.6 billion on luxury goods this year but they will do so with an eye toward value as the country recovers from recession. Spending on luxuries, excluding cars and travel, is set to rise 8 percent to $359 billion compared to 2010. While the number of affluent families planning to spend more has almost doubled in the past 3 years, they are emerging from the recesssion seeking value, quality and service for their money. The Survey of Affluence and Wealth in America polled 1,458 families with a discretionary income of more than $100,000, it found that 15 percent of these familieis plan to spend more in 2011, up a quarter from 2010. Rich families save an average of a quarter of their incomes annually and 34 percnet said they were looking to spend more this year. A large percentage feel less anxious about the American economy and feel they have become more resourceful and smart with their money management.