It would seem that the majority of individuals these days think that to obtain a higher net worth you need to buy more stuff. I can’t drive two blocks without seeing a 5 series BMW, Mercedes or some other overpriced transportation device. At first glance one would think “Wow, all these people must be doing all right!”. But sadly most are in debt up to their eyes trying to impress people who couldn’t care less.
I’m not against nice things by any means, but I am against having nice things that you can’t “afford”. And by “afford” I don’t mean having the cash flow to maintain an over-extended lifestyle. The difference between an established multi-millionaire buying a new car and someone making just enough to cover the lease on their new ride is that one still has cash in the bank! Bringing in $10,000 a month and sending out $9,000 isn’t going to build a future. Scale back and make your money make you money.
Call me old school but I would much rather see more money in the bank and my investment accounts than having the newest clothes, cars and gadgets. (Don’t judge me just got an iPad 2) Sadly there is no compound growth rate on a pair of shoes. Take the $100 you would use to buy the shoes and invest it. I promise you in 10 years you will thank me!
Resist the temptation to keep up with the Jones’. Build your cash pile and look for investment opportunities. True worth is what you own, not what you spend.