MONEY - Food for thought

Kenster,
I totally agree. It seems to me that the true wealthy are not in to impressing others. They do not compare themselves to others. They don't make decisons just to please others. They use financial wisdom.

It's the ones who are looking for approval from other people that end up getting in over their heads. Saying-Look at all I have! Yet, they probably have problems sleeping at night for worry about how to keep the bubble from bursting.

That's my take,

Faye

I agree too. I think this is a way of seeing the difference of those who are really rich in nature, I mean since birth they are already blessed with all the wealth and they just get so used to it that they want to live a simple life and there is nothing to brag about. While those that became rich because of so much struggle seem to grab the opportunity and feel it with the material things that before they were not able to enjoy.

The richest man in the world, Warren Buffett, drives his own modest car and has lived in the same modest home in Nebraska for about 25 years or more!

The richest people are the ones who know that being really rich is about knowing exactly how to get back there if you suddenly lost it all. And the really rich know that at any moment they may have to do it all again and are ready and willing.

There is no guaranteed easy money. And if it happens by accident, chances are you weren't ready for it in the first place. You know the sang about fools and their money :-)

The richest guy I know is worth about $20 million I estimate, maybe more. He's been rich for many years but still works a minimum 6 day week and only takes four weeks vacation a year and probably wouldn't even do that if his wife didn't nag. He's still 'ordinary' - that's why we're still friends after 34 years and his only real extravagance is his helicopter. He's got a big house but he bought it for investment purposes not because he or his wife liked it - in fact she would really hate the house if their eldest daughter didn't live next door in a house that dad had built for her - as an investment of course!
I certainly wouldn't want his life-style nor really all his money but the good thing is that his wealth hasn't changed him greatly - I guess he would still work six days a week come what may. And he's definitely not flashy - in fact you could almost say that money is wasted on him - he just lives to work most of the time almost because he's got nothing else to do (except fly his helicopter).

Just look at Warren Buffett, the richest guy in 2008 - he bought an accident damaged re-conditioned car just to save some money when he was worth more than half the GDP of the World.

If you haven't read The 4 Hour Work Week by Tim Ferriss yet, check it out. It talks a lot about the "New Rich" and gives a spin on this subject saying that being rich has little to do with how much money you actually have, but how you design your life style.

I agree with Zim that background is influential, including how one is raised and where one's wealth came from (earned through work vs. inherited). I believe that many of the "moderately wealthy" gained their wealth through hard work and conservative spending habits, and they maintain this lifestyle even after they have money.