Spending != Wealth

Yesterday a friend of mine was lamenting about how she couldn’t afford new stuff because she was poor. She isn’t actually poor, she lives comfortably enough but just can’t afford all of the niceties she sees other people buying (eg. 46″ Sony Bravia 1080p 120hz LCD TV). That irked me so I climbed onto my soapbox and told her: “Being able to spend money doesn’t actually mean that you are wealthy. It only means that you are spending money and becoming relatively poorer compared to before. In reality, not spending money and saving/investing it means that you are wealthy because you actually have money.”

I think too many people have been brainwashed into thinking if you act like you are rich and buy all the stuff that rich people buy then you really are rich. Newsflash: If you act like you are rich and buy all the stuff that rich people buy then you really are poor since you will no longer have any money once you buy all the stuff that makes you seem rich. It’s what the South calls “Big hat, no cattle”. It’s why people chide about “Keeping up with the Joneses”.

Yet, consumers will keep on consuming, believing that spending money is a sign of wealth. This is not all that surprising considering most of society’s idols are popstars sporting millionaire dollar bling and flashy sleek Lamborghinis. In a society that worships external possessions over the most irreplaceable resource of all — time – it is no wonder nobody pays to the mundane millionaire next door driving the used Toyota, living in his paid for residence, and retired in his mid-forties. Sometimes I just think our society is backwards in so many ways. Alright, I’ll get off my soapbox now.

Related posts:

• Golden Rules of Wealth
• Who Makes Bank and Who Pays
• Poor Reactions
• What does Melrose and Napolean Hill have in common?
• Envy versus Sympathy