For Financial Success, you don’t have to look Rich to become Rich
Probably one of the biggest ironies of reaching Financial Success is that you don’t have to look Rich to be rich. This is hard for many people to understand because we have this common belief that being rich is a very visible thing of expensive nice possessions, but true wealth is invisible. It’s about living an average modest life the everyday Rich person becomes Rich because they see the importance of looking poor.
1. Looking Rich is the Quickest Way to Go Broke
When I say looking poor, I’m not talking about wearing raggedy clothes and driving a car with a bunch of emissions coming out, but I’m just talking about living modestly with no visible indicators of their money. Think blue jeans and a t-shirt, driving an old Honda to build wealth and become more financially secure. It’s important to see why looking poor and changing your view on what it means to be rich, and so in this article, I want to talk about six main reasons why looking poor is important for Financial Success.
Financial Success: The Hidden Pitfalls of Appearing Rich
Is looking Rich the quickest way to go broke?
Now, I think that being Rich is about making it visibly known as the quickest path to going broke. I mean, we see this all the time with professional athletes who suddenly start making millions of dollars.
Let’s say this athlete makes $20,000 a month, then gets a giant house, a collection of cars, and tons of stuff, increasing their expenses to $20,000 a month. Although they look and feel Rich at the moment, when the money stops coming in, which is something that happens pretty quickly with athletes, they have these high expenses but no income, no savings, and immediately go broke. It doesn’t matter how much money you make; if you spend all your money, then you won’t have any money.
If you’re making $20,000 a month and spending $20,000 a month, you are still one surprise expense away from going broke. Looking Rich is not sustainable in the long term, and so looking poor is important because it is sustainable in the long term when you live modestly and instead build up your wealth. You’re always prepared for life’s surprises. When you look poor, you’ll never go broke.
Financial Success: The Weight of Riches and Their Hidden Liabilities
2. Looking Rich Burdens You With Liabilities.
Does looking rich burden you with liabilities?
The problem with looking rich is that you mainly end up buying something associated with liabilities, which are things you owe, and when you decide to look rich, these liabilities burden you and prevent you from growing wealth. For example, if you want to look rich and get nice clothes with a credit card, a fancy car with an auto loan, or a big house with a high mortgage, you have all these liabilities to worry about. Whenever you make money, a huge amount goes to paying off these liabilities.
Having too many liabilities makes it hard to get ahead in life. So looking poor is important because you avoid having too many liabilities, and you end up having more money to buy assets, which are things that provide you with future benefits. When you look poor and limit your liabilities, you have more money to build your assets, like your emergency fund, buying stocks, or other investments that help you grow your wealth. So looking rich is a lifestyle burdened with liabilities, but looking poor is a lifestyle enriched with assets.
3. Looking Rich Makes You Live in Survival Mode.
Is that looking rich makes you live in survival mode?
I already explained that having an affluent look drives you to build up liabilities, which makes it more difficult to enhance your wealth. Conversely, having a terrible look permits you to accumulate assets, making enhancing your fortune simpler. If you strive to seem affluent while spending all of your money on liabilities. You’ll soon find yourself in a vicious loop of getting money, enjoying good things, paying for them, running out of money, and then earning money again, no matter how much you make.
Rather than being caught in this survival mode, you generate money, have fewer costs to pay for, and invest the difference in assets. Over time, your assets will expand to where you don’t have to worry about running out of money before the next pay cheque comes in, since your assets are generating money.
Cracking the Code to Financial Success: The Art of Appearing Poor
4. Looking Rich Makes People View You Differently.
Is that looking rich makes people view you differently?
Another huge con of looking rich is that when you show the world that you have money, people start to view and treat you differently. For example, your friends and family might feel entitled to you helping them. You could surround yourself with phony people, and people could try to take advantage of you. Looking poor is important because it’s perfect that people don’t know how much money you have.
When you look like an average person, you’re viewed as equal. People are more authentic around you, and no one’s trying to get something out of you. The truth about the world we live in is that in is a dog-eat world out there. If people think you have money because you’re portraying to the world that you have money, you open up the possibility of many people trying to take advantage of you.
5. True Wealth Doesn’t Need to Prove Itself
Is it that true wealth doesn’t need to prove itself?
Many people who try to look rich and convince other people that they have money are usually just drowning in debt because their entire lives are just funded by car loans. High mortgages and maxed-out credit cards when people look rich, they’re just trying to prove to other people that they have money, but why? Because true wealth doesn’t need to prove itself, when you have real wealth in life, you don’t feel the need to prove it to other people.
I mean, when you have options, why does it matter if other people know? And so looking poor is important because the less you care about what other people think, the more empowering money is. The less you care about what other people think, the more you can use money as a tool to live the life that you want now.
6. Financial Peace and Success is Better Than Looking Rich.
Human nature makes us want material possessions, but financial peace is more valuable
That looking poor is significant is that financial peace is just better. I think, to some extent, everybody wants to have nice things. I mean, whenever you drive past an absurdly large house, every single person says to themselves; I wonder what it’s like to live there.
Finally, people try to look rich and get a lot of impressive things because it’s something deep in our human nature. We’re attracted to shiny things, big things, and abundance. They’re cool things, but you know what’s much cooler? Financial peace, there’s nothing better than not having to worry about money.
Conclusion
Don’t fall into the trap of looking rich. Build true wealth by living modestly, avoiding debt, and investing in income-producing assets. Financial peace is the ultimate indicator of success.