Monday, 1 July 2013

Chasing The Lifestyle - Right or Wrong ???


Our grandparents or even parents grew up in a time when they had to learn to be resourceful. Things were fixed and not replaced, women made their own clothes and neighbors shared one phone. Things were purchased because they were necessary, not because they were simply wanted. No one would ever have dared to refer to them as “cheap skate”.

So how about our generation? People in their late 20s and early 30s carry significantly higher credit card debt than older generations and pay it off way much slower. Much of this can be attributed to the rising costs of education, but the bigger problem in my opinion, is our generation’s fear of looking “cheap”.

Success is naturally related to wealth, and no one idolizes or looks upto someone who is not successful. On top of that, the “lifestyle” has morphed into a whole other level of status and luxury. In the culture of today, having the appearance of wealth trumps actually having any money. What needs to be understood, though, is that people who are really wealthy actually attribute frugal (or “cheap”) habits to getting and staying there.

The number one quality of successful people is living below their means, and this means being frugal. For example, there are millionaire households living in homes valued under $1,000,000, yet at the same time, 86% of people driving the most expensive “status” cars are non-millionaires. People who actually have money are not scared of looking cheap.
 
 

The right thing to do is to put yourself in the position to have the money to invest in my future – to create more opportunity and success for yourself. Who knows, maybe this is what will separate the rich from the poor, like a survival test. Those who know how to sacrifice will be the ones who ultimately live in comfort, and those who feared looking cheap will ultimately live in their parents’ house when they’re over 35.

Wondering where you fall in all of this? Well the next time you put your credit card down, ask yourself what kind of “lifestyle” you’re investing in.

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