Real Wealthy or Fake Rich?

Look at the people around you, their spending habits and their lifestyle. Some people that look like making a lot of money may only be “fake rich”. We see them at parties, on Instagram, everywhere. How do we know whether someone is really wealthy or is just faking it? Emil Anton wrote an article on 15 signs someone is fake rich and we picked our top 10 from the article:

1. BRAND conscious

They care more about the brand perception than quality. The logo is the thing that makes them happy. When they cannot afford it, they buy fake products. Real wealthy people focus on comfort and quality. That is why some of the higher end brands may look boring to you, because they appeal to a different type of mindset.

2. Name-drop

Public perception is that people with net worth are closely correlated to network. Thus, the fake rich like to mention about people’s names and pretend they know them very personally.

3. Validation

They are in constant need of others’ approval. They show off their wealth on social media, boast about the money they’re making. They want to impress those they think who are less than them. They spend more time trying to be perceived as successful than actually putting in the work to become successful.

4. Talk is about Money

They are boring to talk to. They talk about money, how they earn and where they spend, nothing much. They cannot hold deeper conversation about real wealth. And they seek your advice on how to make more!

5. Brag about their plans

They have so many plans to make millions but never put in the work and be consistent about it. People who are truly wealthy know where they are going and focus on incremental progress.

6. Complicated Job Titles

Today, we have many fancy-pants job titles. Everyone can be a CEO of their own businesses. Yes, fancy title may impress people but it is actually useless. Hard work is always more important than the packaging.

7. Boss over a Boss

Yes, you can get rich by working for someone else, but most people are just building the wealth of others. “People in fancy suits look really successful until you realize they work for people in t-shirts and jeans.”

8. Savings? Nil

They “invest” in their image more than saving the money they have. And when bad things happen they need quick access to capital and resort to borrowing. Some even borrow for purchases. Buying things on credit or instalments does not always mean bad. If you are using that money to acquire an asset that will generate more money, it is a good debt.

9. Car is more expensive than House

We have seen people living in a one-bedroom apartment but owning a Rolls-Royce or staying in a “depressed” part of town with a Mercedes in the garage or porch. A good rule of thumb is the 10-15% law. If you are living in a RM300,000 apartment then you should only buy a RM45,000 car.

10. Excuses for their Failure

We didn’t have enough capital... We didn’t advertise enough... No. You were simply unable to adapt and smart enough to make the correct decisions for the changes. External factors happen all the time.

There are many reasons why people are trying hard to pretend rich. By doing so, some feel better about their situation. Some just want to impress others. But remember, pretending to be rich can make you poor. Learn to live within your means!

Reference:

1. Emil Anton, 15 Signs Someone is FAKE RICH www.alux.com

2. Trent Hamm, Pretending to Be Rich www.thesimpledollar.com