Hey have you ever seen millionaires driving around in Ferraris, wearing Gucci scarfs and rocking Louie V. sunglasses every day of the week? Do you stop to notice that the only people who are flashy are the TV entertainers because they are getting paid to promote a brand? Well I believe people who are flashy all the time in regular neighborhoods, are not making a living as entertainers in the public eye thus living above their means. People with self made wealth do anything possible to stay under the radar for the most part. I can attest that most millionaires care more about continuing their high income and assets far more than living a flashy lifestyle.
What experience have you witnessed with someone who is always flashy? Buying the latest things, just to say they have something new. Trading up cars every 2 years, because they want to impress others. I cannot shake the feeling that those people always being flashy equals them living above means.
The standard definition of flashy is -stylish and expensive-looking in an obvious or ostentatious way.
Always being Flashy Equals Living above Means
-Millionaires with real wealth are not looking to impress others
-Millionaires might drive a nice Maserati, but it is a small % of Net Worth
-Millionaires care more about leaving a legacy than about being flashy
-Real Wealth transforms people to act responsible or irrational (Which side will you be on)
-The millionaire next door reached millionaire status in 17 years; do you think they will waste it now to be Flashy?
-Millionaires buy a house that is less than their Net Worth, not 3 times what they are worth
-Millionaires own stocks of companies, instead of having the companies own them
-Millionaires value the compounding effect of money above being flashy
-Flashy individuals can only be flashy short term or else they will run out of funds
-Flashy individuals run the risk to outlive assets, and then they have to start all over building riches.
-Flashy individuals can never be satisfied, as there will always be a new thing they have to get.
-Flashy Individuals do not want freedom as they will always have to work to maintain that lifestyle.
Obviously if you want to live life like a sultan with your lottery winnings then more power to you. I wish you the best of luck, but statistics show that most lottery winners lose their wealth in a matter of 5 years. It could be an emotional trigger for some people to live that lifestyle, but I believe that we all should evolve and learn financial lessons every day. All that attention you are attracting will not bring you any joy or happiness.
What it usually does is attract people who just want to get a free ride off your short term riches. Do you want to have 5 dependents who are not your kids, always looking for you to pay to play in an imaginary 1% environment? Once the ostentatious lifestyle runs out, the leeches will leave because your means cannot support them any longer. Well if you are smart you will build wealth at your own pace, maintain income, avoid being flashy, give to charities, and stay modest.
What’s your take with always being flashy equals living above means?
Rich Uncle EL
We're definitely not flashy. We're down to one car because we sold the last one before our RTW trip and our other car now has 165,000 miles! I'd rather make my work for me than use it to buy flashy things.
Dan I hope you can help me spread the word that, living modestly while investing will help anyone reach financial independence. Thanks for the comment. Good Luck.
For real! It's crazy that people would rather look like they could be on MTV Cribs than have a well funded retirement account and no consumer debts!
Yes I see it all the time, from young to old people its a vicious cycle that is hard to break. Some young adults want the best brands and the older folks spend thousands a year on QVC buying junk. Help me shed some light on these issues. Thanks for the comment.
Rich Uncle EL you are wrong.
I want people to be flashy. I want people to go out and buy the newest gadgets. Please use and buy more stuff and junk to fill your homes. Then buy more plastic boxes to store that junk. Also be sure to rent a storage unit so you can store your old crap there making room for you to buy and store more crap in your house.
You will single handedly keep the economy going and my stock portfolio will continue to go up, up, up. MOOOHAHA, MOOOHAHA (my attempt at an evil laugh)
By the way I will continue to save for things I buy, drive my 2000 Honda minivan and invest in excess of 20% of my income.
My life will be grand.
Unfortunately your life will just feel long.
Keep smiling,
Interesting point of view Doug and you’re not the first to have that mentality. The thing you fail to realize is that companies are very resourceful when it comes to making money, so they will adapt to people buying less and make it in another fashion. I applaud you for staying on your path, but I cannot be a personal finance blogger and tell others to live above means. Once they pay off debt, save for emergencies, and then they can support your favorite companies.
Oops, I really was trying to be facetious in my comments. Did it not come off that way??? Sorry about that if I appeared too serious. I just think that presenting the ridiculous sometimes has more effect than presenting the obvious.
Cheers
No worries Doug, I chuckled when I read the comment as I figured you were being flippant. But I didn't want to take any chances and answered with the professional reply. Thanks for your sarcasm and I hope it strikes a nerve with the readers.
I'm a big fan of the Millionaire Next Door book. Too many people want to act as they are rich by buy flashy things like the fancy car or McMansions, but don't realize that the majority of millionaires got to where they are by living below their means and saving.
Yes I must agree with you Andrew, I read the book as well. I hope people can listen to reason, that materialism does not lead anywhere but to brokeville. Can you find an autograph copy of that book, I want it for my collection. Talk to you soon.
I have taken time to observe the top richest men in the world today, and obviously their appearances are just as simple as average finance citizen. There's nothing flashy about the clothes they put on. So think people can learn from them as well. Thanks for sharing this post, highly motivating.