To Look Rich or To Be Rich?

Do you want to look rich or be rich?

Do you want to live with discipline now or regret later?

Lots of people feel the need to impress others, or at least “keep up with the Joneses” instead of living within their own means. These people tend to rely on credit cards and/or debt to purchase more expensive or luxury items (aka liabilities) just to show or prove they are doing well, however, most of the time they do not have the funds to fully cover their expenses. Trying to spend your way to a higher status never works and comparing what you have to others will never lead to true happiness. This lifestyle will lead to people always feeling the need to get bigger and better things which will oftentimes catch up to them causing them to go bankrupt and potentially lose everything.

A little discipline now will go a long way for your future. You should not concern yourself with what others have. Everyone is different, and everyone’s finances are different. You must find your own path and live within your own means if you want to have true financial success. Ask yourself, do you fully understand the sacrifices others had to make to be able to purchase their items? Do you know what other items they said no to purchasing to be able to save for the items they wanted? Do you know how many late nights they might have worked putting in the overtime to earn the extra money? Do you know how many nights they might have had to spend away from home traveling for their job to earn the income to buy these luxury items? Do you know if they are working a side hustle to earn a little more spending money? Are you willing to sacrifice the time, effort, and energy to be able to truly afford these things as well? On the other hand, if they also purchased their items on credit and/or debt, do you really want to follow that same path? Just like the old expression, if everyone jumped off a cliff, would you? If everyone is making decisions that will lead them to bankruptcy, is that where you want to go also?

It’s one thing to hang out with wealthier people to learn from them, but it’s another if you feel like you need to spend money to prove you’re in a higher status. True wealth comes by understanding your finances, being disciplined to follow a good financial plan, and not feeling like you need validation from others. You must follow what is right for you and your family as only you are responsible for your decisions.

So again, ask yourself,

• Do you want to look rich or be rich?

• Do you want to be disciplined now to have true financial success, or do you want to regret later that you did not make smart financial decisions and are not able to retire the way you wished?

The earlier in life you can answer these questions, the better chance you can have to set yourself up for true financial success.

Please check out the Make A Plan page to make or find a financial plan that can help set you up for financial success. Also, be sure to make a net worth statement regularly to ensure your liabilities are staying in check and not overtaking your portfolio leading you into a debt of despair.