MONEY - Food for thought

by Kenster 12 replies
My background before internet marketing was in Investment Banking, Financial Planning, and Real Estate Development...quite diverse I know but it involved working and networking with many rich people

One thing I noticed throughout the years is that there is normally an inverse relationship between peoples material possessions and their net worth, at least once you get above the upper-middle class segment.

Most people I knew who drove the most expensive cars and lived in the most expensive houses and purchased the most expensive imported bottles of water were the people who could barely afford it. The richest people I knew (net worth wise) normally didnt show it at all. In most cases, they actually tried to conceal their worth. The wealthiest person I know actually drives a very very used purple minivan with roll up windows...no joke


Do you guys have similar experiences?
#mind warriors #food #money #thought
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  • Profile picture of the author 4yourwealth
    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
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  • Profile picture of the author Jack Chua
    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.
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    • Profile picture of the author BobDolemite
      Bump! I met a guy whose family's net worth was in the billions. He drove a cheap used sedan, which he had outfitted with bulletproof glass. He dressed well but you would never guess that he was rich, never mind a billionaire.

      Jack Chua, you bring up a good point. I met a couple that recently became rich. They weren't shy about flaunting all their new purchases (including their custom built mansion). I guess it's their way of telling everyone that they finally "made it."
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  • Profile picture of the author johnlagoudakis
    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!
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  • Profile picture of the author RichPirate
    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 :-)
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  • Profile picture of the author don21stc
    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).
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    • Profile picture of the author ebby1
      if I have to make a logical comment onto this issue...I believe wealthy people have already achieved that comfort and adequacy level of requirement..so they need not show off...but think of those struggling hard to earn,get that comfort out of materials...its new to them and certainly more exciting...so showing comes with the package itself.
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  • Profile picture of the author Taiyab
    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.
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  • Profile picture of the author RichPirate
    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.
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  • Profile picture of the author dgoldie
    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.
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    • Profile picture of the author Matt D.
      Being rich can mean different thins for people. For some it is just to own money, for somebody else it is to spend it and enjoy it. Some people who are rich simply don't have the desire to spend it on things they could, they also might be afraid. Many people who are poor or middle income and then get rich don't show it that much because of their programming from the past.

      But I think that if you have a lot of money you should spend it. Because if you spend it you help the economy. Invest it or spend it. That's my opinion. If you just own it, you're selfish

      But hey, there is potentially unlimited amount of money, so selfishness does not really exist.
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      Hard work always pays off.
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