What Makes You Think Someone Has Money?

It struck me that Stanley’s wealth equation has very little to do with how most of us ACTUALLY calculate our worth — which is namely based on social pressures, and how we feel in relation to what we have or have not. As an example of this, Stanley talks about home values and spending habits.   Now, of course it is easy to see how buying a home you can’t afford is not a great idea.  However, more interesting were the other socioeconomic consequences of buying a home you can’t really afford…    This is where people get trapped!

In addition to your actual mortgage or rent, you must remain aware of how and where you choose to live may also influence other spending decisions you make like-the car you drive, the clothes you wear, the schools your children go to, etc.  For many, it is a dangerous cycle that is easily ignored until it’s too late.  And just because many Americans have recently learned this lesson the hard way, it doesn’t mean the entire population has changed their ways!

Yes, we constantly hear about how Warren Buffet has lived in the same modest house in Omaha forever, and no, if you end up being a billionaire, we’re not saying you have to be that extreme. However, if you DO want to build any kind of wealth and secure your financial future, you need to be more concerned about what you actually have in the bank – and less concerned with appearances. Because wouldn’t we all rather actually BE rich than just act rich?!

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