Monday Night Finance- Volume 83

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10 Big Things That Screams I’m Rich Pretending To Be Poor

It can be quite frustrating when wealthy individuals try to downplay their financial status and act as if they are struggling financially. Like that kid you knew in college that always complained about prices but then you found out his parents were loaded and mailing him a check every week. This behavior can be seen as inauthentic and insincere, especially when they are able to afford luxuries and privileges that most people could only dream of. Moreover, this type of behavior can be seen as a lack of appreciation for one’s blessings and can come across as disrespectful to those who are truly struggling to make ends meet.

What are some of the worst examples you’ve seen of this behavior? Elizabeth Ervin highlighted some of her favorite examples in this post.

I encountered an interesting question today, “What screams rich pretending to be poor?” Typically, I’ve heard it asked the other way around, right? So what screams poor pretending to be rich? Nonetheless, the answers were fascinating, and here are the top ten.

Elizabeth Ervin,

The article highlights 10 ways that rich people may pretend to be poor, including “begpacking” (backpacking and begging in low-income countries), van life, the “starving artist” lifestyle, downplaying possessions, building low-quality schools in impoverished nations, having a “wealth face” despite a tragic past, suburban rich kids pretending to be from the hood, thrifting and buying second-hand clothes, buying jeans with holes, and discussing flying economy class. These behaviors are seen as inauthentic and can be seen as a lack of appreciation for one’s blessings and can come across as disrespectful to those who are truly struggling.

10 Infuriatingly Dumb Ways People Have Wasted Money: $35 For a Candy Bar?

Living outside of one’s means can be a dangerous financial trap that can lead to significant financial stress and strain. When individuals spend more money than they earn, they are relying on credit and loans to support their lifestyle. This can quickly lead to mounting debt and interest charges, which can become difficult to repay. Moreover, living outside of one’s means can also lead to a lack of savings and a lack of financial security. In the event of an unexpected expense, such as a medical emergency or job loss, individuals who are living outside of their means may be unable to pay their bills and may face severe financial difficulties.

While many times people are forced to live outside their means, I’m sure we all have our favorite examples of “unforced errors” when it comes to money. In this article by the Wealthy Nickel, Elizabeth Ervin shares some of her most egregious examples.

Everyone has their guilty pleasure that they spend money on, but sometimes it can go too far. It doesn’t take a financial genius to avoid these money mistakes.

Elizabeth Ervin, The Wealthy Nickel

The article highlights 10 examples of unwise or frivolous spending habits that people have seen others engage in, including spending money on tattoos instead of Christmas or birthday gifts for kids, forgetting to cancel free trials before they end, a private fireworks show, overdrafting their account for a candy bar, being their own boss in a multi-level marketing (MLM) scheme, purchasing non-fungible tokens (NFTs), spending money on crystals and stones, renting-to-own expensive items, buying lottery tickets and scratch-offs, and spending money trying to buy love. These examples show that it’s important to prioritize needs over wants and to think carefully about where money is being spent in order to achieve financial stability and security.

Rich friends, poor friends

Jim Rohn, a famous motivational speaker and entrepreneur, is well known for his quote, “you are the average of your five people you spend the most time with.” This quote suggests that the people you surround yourself with have a significant impact on who you are and what you achieve in life. It highlights the importance of choosing the right people to be around, as they can greatly influence your thoughts, habits, and overall success. But is this statement entirely true? In this article by Monevator looks at how having rich friends vs. poor friends affects your finances.

In my 20s, I read through books about making money the way others of my generation popped certain feel-good pills.

And most of those books urged their readers to abandon friends who had a ‘poverty mindset’.

Instead, you should look to have rich friends going places.

The Monevator

The article starts with the assumption that surrounding yourself with rich friends is a well-known strategy for increasing your wealth. By spending time with those who have more money, it is believed that you will start to view having a lot of wealth as normal and become more positive about growing your finances. It then goes on to share facts supported by scientific research, including a major study conducted by a team of Harvard economists who found that the only type of social capital that is linked to upward economic mobility is friendships with people from a higher socioeconomic status. But the article also touches on the downsides of having rich friends and cites a Warwick Business School study that found that people who earn more than others in their reference group are more likely to feel unhappy with their lives. This is because people care more about how their income compares to those around them, rather than the actual figure they earn. Check out the article for the author’s final take on whether or not striving for rich friends is a good life strategy.