Is Private Jet Travel Worth the Cost? My Dilemma with $5 Million Income and $60,000 Flights – What Do You Think?

It’s a dilemma that most people can’t even begin to relate to. For most, $60,000 for flights seems like an absolute waste when you weigh what the exorbitant sum of cash could have been spent on. For the fortunate few who can afford to fly private, many swear by the experience, but the price of admission isn’t going to be worth it, even for those who are in the ultra-high-net-worth category. Like with just about any expense, it all comes down to opportunity costs. When one’s income climbs, the opportunity costs grow higher, and the magnitude of utility must be considered beforehand, even if said expenses fit comfortably into a monthly budget.

In this piece, we’ll have a look at the case of a Reddit user who’s wondering if it still makes sense to rack up tens of thousands of dollars in flying private with an income that’s currently in the ballpark of several millions ($5 million in annual income to be exact).

Just because you can afford it doesn’t mean it’s worth spending money on

For someone pulling in millions, a $60,000 flight bill doesn’t seem all too obscene. That said, there is a danger to letting lifestyle creep take over, especially since there’s no telling when one’s massive income could be in jeopardy.

Indeed, millionaires who strive to maintain their millionaire lifestyles may not stay millionaires for very long, especially once the winds of recession hit. Undoubtedly, in the face of a layoff or AI-induced disruption, maintaining an opulent lifestyle, even when one’s income takes a hit, could be a formula for financial disaster.

In any case, for those keen on spending significant sums of cash and are fine with the hefty opportunity costs, it comes down to whether one’s utility and time savings make up for the much higher price of admission. So, what does one really gain by flying private?

Are the time savings, comforts, and conveniences worth the markedly higher ticket price?

Perhaps a few hours would have been saved not having to wait in the TSA line and slogging through that incredibly slow boarding process. The added privacy, more legroom, better internet connectivity, and better food may also make for a better experience. But does a few hours saved and the slight luxuries really make up for the tens of thousands that would have been saved flying coach?

That ultimately depends on the individual. After all, everyone has their own priorities. Personally, I don’t think it’s the best value in the world, even if you’ve got enough cash in the bank such that flying private wouldn’t even make a 0.1% dent in one’s net worth.

In fact, many self-made millionaires and some billionaires, including Shark Tank’s Barbara Corcoran, opt to fly commercial when they could very easily fly more luxuriously. To Cocoran, she says she’ll “never spend money on a business class or a first class ticket” and that she’ll “always fly coach.” Even if more of her investments pay off and her net worth rockets to the next level, I don’t expect much will change with her flight routine.

The bottom line

For those who can afford to fly private or first class, it all comes down to the perception of the value provided. Does the 10x (or maybe closer to 50x, depending on the circumstances) higher price equate to a similar magnitude of added value?

For those who have to question whether they should be paying so much for such a luxury, the answer is probably “no.” And for those who still perceive a decent value proposition, given the hours saved, it all comes down to opportunity cost. In any case, most Reddit commenters seem divided as to whether or not it’s worth it to fly private, with most citing it as worthwhile if they’re starved for time.

The post Is Private Jet Travel Worth the Cost? My Dilemma with $5 Million Income and $60,000 Flights – What Do You Think? appeared first on 24/7 Wall St..