September 4, 2013
Most folks in America have the choice of being rich vs. acting rich, but they can’t do both due to limited amounts of money. How does this work?
Most folks in America have the choice of being rich vs. acting rich, but they can’t do both due to limited amounts of money. How does this work?
You can act rich (by buying expensive “stuff” so you look the part) or you can actually be rich (by saving and investing wisely over a long period of time). You can’t do both. The more “stuff” you buy, the poorer you will be. “Stuff” becomes worthless shortly.
Well said, Katherine. Thomas Stanley’s wonderful book, Stop Acting Rich, explains this issue in detail. Acting rich (looking the part as you buy expensive consumable items that depreciate dramatically over time) is an allusion that the average person cannot afford. Looking the part will only last so long. At some point, the bills come due and things can get downright ugly.
Being rich (save 20% or more of your income, eliminate most if not all of your debt, and invest wisely and efficiently) is offered to many people, but few take it. Why? To be rich is to look “ordinary.” Meaning, you focus on appreciating assets (stocks, bonds, real estate as well as a business or an education) while limiting depreciating assets (stuff).
Rarely will anyone praise you or say WOW like they would if you bought that new car, designer clothing, new technology, etc. That is a sign that you are on the right path. All that glitters is not gold. Translated: You cannot trust your eyes. What you see may look like wealth, but it isn’t. On the other hand, what you see as ordinary very well may not be the case either. To act rich or be rich is a decision that YOU make every day with each thought and action. Choose!