What Do Rich People Buy Purely to Prove They Are Rich?
Rich people often buy things whose main job is to show that they could afford them: luxury watches, designer handbags, supercars, private number plates, rare collectibles and exclusive memberships. Economists call these status goods or "Veblen goods", after Thorstein Veblen, who described the idea of conspicuous consumption in 1899. The clearest example is something that does nothing at all except prove the price was paid, like the "I Am Rich" iPhone app of 2008.
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The idea behind it: conspicuous consumption
In The Theory of the Leisure Class (1899), the economist Thorstein Veblen argued that wealthy people spend in visible ways to signal their status to others, a habit he called conspicuous consumption. The full text is free on Project Gutenberg.
The economic twist is that, for some of these goods, a higher price can make them more desirable rather than less, because the price is part of the point. A luxury handbag that suddenly cost the same as a high-street one would lose much of what makes it special to its buyers.
What wealthy people buy to signal status
Most status purchases still do something useful; the extra money pays for the signal on top.
| Category | What it does | What the extra money signals | |---|---|---| | Luxury watches | Tells the time | Taste, money and often a long waiting list | | Designer handbags | Carries things | Recognisable brand, limited supply | | Supercars | Transport | Money, and the cost of owning and running one | | Private number plates | Identifies the car | A visible, often expensive choice | | Art and rare collectibles | Decoration, investment for some | Taste and access | | Exclusive memberships | Access to a place or group | Being let in |
Some of these are also bought for enjoyment, craftsmanship or as an asset, and many people who buy them aren't thinking about status at all. But the signalling part is real, and it explains why prices in these markets often behave so differently from everyday goods.
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The purest example: buying something that does nothing
Every so often, someone sells an item whose only function is to show the buyer paid for it. The best-known case is I Am Rich, an iPhone app released in August 2008 for $999.99, the highest price the App Store allowed. It displayed a glowing red gem and did nothing else. Apple removed it from the store within about a day, after a small number of people had bought it (Wikipedia summary with sources).
The story is still told because it strips status buying down to its core: no craftsmanship, no usefulness, no resale value, only the fact of the purchase.
Is status buying a good idea?
That depends on the person. A few honest points to keep in mind:
- It doesn't prove wealth. Anyone can stretch to buy a single expensive thing, and credit makes it easier. A status item shows a purchase, not a bank balance.
- Running costs matter. Cars, watches and memberships often have servicing, insurance or yearly fees on top of the price.
- Resale value varies. Some items hold value, many lose it quickly, and a purely symbolic item usually has none.
- Know why you're buying. If it's for your own enjoyment or as a gift that will be remembered, that's a fair reason. If it's to impress people who aren't paying attention, it usually disappoints.
A modern take on the "I Am Rich" idea
The £6,000 Club is our own, openly symbolic version of this idea. It is a one-time £6,000 card payment, and what you get is only a numbered certificate with your name, the date and your member number in joining order, plus a private link that verifies it. There is no members list, no perks, no course and no access to anything else. It certifies only that the holder paid £6,000; it is not proof of income, wealth or creditworthiness. It never renews, there are no refunds once the certificate is issued, and a certificate is withdrawn after a refund or chargeback. You can read the full details here. It is not for most people, and that is the point.
Key takeaways
- Status goods are bought partly to signal that the buyer can afford them.
- Thorstein Veblen named this conspicuous consumption in 1899.
- Watches, handbags, supercars, number plates, art and memberships are common examples.
- The I Am Rich app (2008, $999.99) is the purest case: it did nothing but show the price was paid.
- A status purchase shows a purchase, not proof of wealth.
FAQ
What is a Veblen good?
A Veblen good is a product where demand can rise as the price rises, because the high price itself is part of the appeal. It is named after the economist Thorstein Veblen.
What was the I Am Rich app?
An iPhone app released in 2008 for $999.99 that showed a red gem on the screen and had no other function. Apple removed it from the App Store shortly after it went on sale.
Why do rich people buy expensive things they don't need?
Reasons include enjoyment, craftsmanship, investment and social signalling. Economists focus on the signalling part: visible spending can show status within a social group.
Do expensive purchases prove someone is rich?
No. An expensive item only shows that it was bought. It says nothing reliable about someone's income, savings or debts.
What is the £6,000 Club?
A purely symbolic purchase run by Asendify: a one-time £6,000 payment for a numbered certificate and a private verify link, with no perks or access. It is not proof of wealth or income.
Last updated: 31 October 2026
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