Top Spending Habits of Affluent Homeowners
Most money experts agree that in today's post-pandemic economic state, America's wealthiest class of spenders has not slowed down.
If anything, with more money being circulated throughout our economy than ever before, affluent homeowners are reaching their all-time highs of spending and splurging.
Since being pent-up throughout the past couple of years, high-income earners have statistically widened the gap in spending between middle and low-income earners.
While some Americans have elected to save for rainy days, affluent homeowners have been out and about, enjoying the sun and their money.
Now it's important to recognize that not all affluent spenders are the same. Whether they're spending on entertainment, home improvements, self-development, fashion, or
recreation, everyone has their own habits in how they like to splurge.
At RSVP advertising, we've identified three key characteristics which give away the affluent homeowner's secret choices in how they're spending money. Each of these identifiers can be identified respectively by the following characteristics: the Investor, the Spender, and the Splurger.
By getting to know each category well, RSVP can help you focus your advertisement messages and offers to be appealing to high-income earners and having the greatest marketing impact and return on investment.
Let's jump in deeper now and get to know each character type by name.
The Investor type of homeowners are people who enjoy spending their cash in smart ways.
They prefer long-term value purchases, over short-term pleasure and items that quickly depreciate in value.
For the investor type, we're talking about future cash-yielding purchases, such as remodeling with home improvements, hiring professional services, and investing in themselves through personal development and education.
Since the pandemic, more homeowners have gravitated toward this smart home investor category, as we spend more time at home, and with our families.
The Spenders, on the other hand, are not as much opting for purchases related to their homes as they are for going out and experiencing premier dining and entertainment.
Always on the move with a desire to enjoy the finer things in life, Spenders are constantly visiting new local restaurants, making appointments for wellness treatments, and shopping for brands they feel a sense of connection with.
While they aren't the type to shop until they drop, spenders are mainly focused on enjoying their experiences, rather than collecting materials along the way.
The Splurgers, however, are found somewhere in the middle of spending and investing, with an expense budget ready for both of these categories, often times combined.
But, they're not just spending or investing, Splurgers are buying for different reasons than the rest, and are not to be under-estimated.
Splurgers are tapping into a spending habit best known as "glamour vengeance", or "keeping up with the Joneses".
While Splurgers can be interested in home improvements, their motives to spend are found in the boosts in status that having a well-manicured home can bring.
Agendas such as inviting guests over, hosting classy parties, and presenting the fine architecture of their home are things often more considered than for example the home's resale value.
And unlike spenders, the splurger types are also seen as the fine-dining type, but they're not only showing up for the experiences of new local cuisine. Splurgers are on the hunt for being treated like VIPs, and nothing short.
Gaining extra perks along with their purchases is a key decision-making factor when splurging with cash. Making high-status connections at classy events, gaining access to exclusive social networks, and buying one-of-a-kind items as the highest bidder, are each tell-tale signs of the spending habits of Splurgers.
So how does RSVP know just how to get your business in front of these affluent buyers?
Through the tried-and-true method of direct mail advertisements.
With the right message and the right target audience, RSVP delivers high-quality marketing to each spending category of high-income homeowners. Plus, by advertising through direct mail, you're able to cut through the clutter of other marketing messages, offering your services directly to affluent buyers, right to their homes.
Whether your business is offering Investors money-saving solutions for home improvements, Spenders the newest local dining experience, or Splurgers a VIP ticket to your next charity auction, RSVP understands how to deliver the right message to your audience.