[jelliclesfarm]

It’s very simple. If you are poor, your needs can be met with a small budget. If you are rich, (upper middle class..truly wealthy people don’t have to care)the ‘fixed costs’ are higher.

You are lower middle class and Disney world is fine to take your five kids and you don’t have to break the bank. But if you are upper middle class or even borderline rich, every additional expense due to extra progeny is many times over. Your savings can’t be stretched if there is a dip in earning potential. It’s difficult to ‘step down’.

A very simple example is mortgage/owning house vs renting. Less riskier to be laid off as renting capacity is elastic vs losing mansion and cost of living of a certain lifestyle is inelastic.

And this pattern appears in every aspect of life.