How "other people" waste money.

[Account Closed]

This is more an observation as much as anything, but it also relates to the attitude many people have regarding real estate. I often read here and hear from many other sources how automobiles are such a waste of money and a depreciating asset. People are always advised to drive a cheap beater. I will acknowledge that an automobile does depreciate and can be quite expensive but many of the naysayers are being the pot calling the kettle black. Let's take the example of a couple in their 50's plus who now have an empty nest. These people are financially conservative and also somewhat financially savvy. They are also of the belief that automobiles are a waste of money and drive conservative, used cars. 20 years earlier they bought a large home in a preferred area of town so their children could go to the best schools. Their home has served them well but now they have rooms they never go into. They don't use half of the house. They continue to pay large property tax bills and insurance. Maintenance of the home and the grounds continues to be significant. Their utility bills are large as they continue to pay to heat and cool rooms they no longer use. They could sell their house and move into a much smaller house and slash their property tax, utility and maintenance bills as well as pocket a significant amount of equity tax free that they could invest. They choose to ignore all of this and continue to criticize how others spend their money while their home "leaks" enough money every year to pay for a new Mercedes and take a cruise.